VTEB vs. TAXT
VTEB (Vanguard Tax-Exempt Bond ETF) and TAXT (Northern Trust Tax-Exempt Bond ETF) are both Municipal Bonds funds - VTEB tracks the S&P National AMT-Free Municipal Bond Index while TAXT tracks the ICE Focused Municipal Bond Index. Both are passively managed. Their correlation of 0.84 suggests significant overlap in exposure. Both charge a 0.05% expense ratio.
Performance
VTEB vs. TAXT - Performance Comparison
Loading charts...
Returns By Period
The year-to-date returns for both investments are quite close, with VTEB having a 1.52% return and TAXT slightly higher at 1.55%.
VTEB
- 1D
- 0.10%
- 1M
- 0.61%
- YTD
- 1.52%
- 6M
- 1.95%
- 1Y
- 7.14%
- 3Y*
- 3.59%
- 5Y*
- 0.93%
- 10Y*
- 2.10%
TAXT
- 1D
- 0.15%
- 1M
- 0.66%
- YTD
- 1.55%
- 6M
- 2.18%
- 1Y
- —
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
VTEB vs. TAXT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
VTEB Vanguard Tax-Exempt Bond ETF | 1.52% | 4.32% |
TAXT Northern Trust Tax-Exempt Bond ETF | 1.55% | 3.96% |
Correlation
The correlation between VTEB and TAXT is 0.84, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (All Time) Calculated using the full available price history since Aug 20, 2025 | 0.84 |
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
VTEB vs. TAXT — Risk / Return Rank
VTEB
TAXT
VTEB vs. TAXT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Exempt Bond ETF (VTEB) and Northern Trust Tax-Exempt Bond ETF (TAXT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| VTEB | TAXT | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 2.64 | — | — |
Sortino ratioReturn per unit of downside risk | 3.92 | — | — |
Omega ratioGain probability vs. loss probability | 1.58 | — | — |
Calmar ratioReturn relative to maximum drawdown | 2.58 | — | — |
Martin ratioReturn relative to average drawdown | 9.21 | — | — |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading charts...
Sharpe Ratios by Period
| VTEB | TAXT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.64 | — | — |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.24 | — | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.40 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.48 | 2.84 | -2.36 |
Drawdowns
VTEB vs. TAXT - Drawdown Comparison
The maximum VTEB drawdown since its inception was -17.00%, which is greater than TAXT's maximum drawdown of -2.49%. Use the drawdown chart below to compare losses from any high point for VTEB and TAXT.
Loading charts...
Drawdown Indicators
| VTEB | TAXT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.00% | -2.49% | -14.51% |
Max Drawdown (1Y)Largest decline over 1 year | -2.71% | — | — |
Max Drawdown (3Y)Largest decline over 3 years | -5.53% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -12.64% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -17.00% | — | — |
Current DrawdownCurrent decline from peak | -0.46% | -0.52% | +0.06% |
Average DrawdownAverage peak-to-trough decline | -2.33% | -0.47% | -1.86% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.76% | — | — |
Volatility
VTEB vs. TAXT - Volatility Comparison
Loading charts...
Volatility by Period
| VTEB | TAXT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.90% | — | — |
Volatility (6M)Calculated over the trailing 6-month period | 2.03% | — | — |
Volatility (1Y)Calculated over the trailing 1-year period | 2.72% | 2.54% | +0.18% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.90% | 2.54% | +1.36% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.26% | 2.54% | +2.72% |
VTEB vs. TAXT - Expense Ratio Comparison
Both VTEB and TAXT have an expense ratio of 0.05%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
VTEB vs. TAXT - Dividend Comparison
VTEB's dividend yield for the trailing twelve months is around 3.35%, more than TAXT's 2.54% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TAXT Northern Trust Tax-Exempt Bond ETF | 2.54% | 1.23% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VTEB Vanguard Tax-Exempt Bond ETF | 3.35% | 3.29% | 3.14% | 2.79% | 2.09% | 1.64% | 1.99% | 2.30% | 2.25% | 1.96% | 1.66% | 0.58% |
Frequently Asked Questions
VTEB and TAXT have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
Both ETFs have the same 0.05% expense ratio. The better choice depends on whether you care most about return, fees, risk, or income.
VTEB and TAXT have the same expense ratio: 0.05% per year.
VTEB has the higher dividend yield at 3.35%, compared with 2.54% for TAXT.
VTEB tracks S&P National AMT-Free Municipal Bond Index, while TAXT tracks ICE Focused Municipal Bond Index. They also come from different issuers: Vanguard and Northern Trust.
Find the right allocation for VTEB and TAXT
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer