VTEB vs. THYM

Last updated Jun 3, 2026

VTEB (Vanguard Tax-Exempt Bond ETF) and THYM (T. Rowe Price High Income Municipal ETF) are both exchange-traded funds - VTEB is a Municipal Bonds fund tracking the S&P National AMT-Free Municipal Bond Index, while THYM is a High Yield Muni fund actively managed by T. Rowe Price. VTEB is passively managed, while THYM is actively managed. A 0.70 correlation means they provide meaningful diversification when combined. VTEB charges 0.05%/yr vs 0.32%/yr for THYM.

Performance

VTEB vs. THYM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Tax-Exempt Bond ETF (VTEB) and T. Rowe Price High Income Municipal ETF (THYM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTEB achieves a 1.52% return, which is significantly lower than THYM's 3.19% return.

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%

THYM

• 1D: 0.13%
• 1M: 0.89%
• YTD: 3.19%
• 6M: 3.63%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

VTEB vs. THYM - Yearly Performance Comparison

	2026 (YTD)	2025
VTEB Vanguard Tax-Exempt Bond ETF	1.52%	0.37%
THYM T. Rowe Price High Income Municipal ETF	3.19%	0.27%

Correlation

The correlation between VTEB and THYM is 0.70, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Nov 21, 2025	0.70

Return for Risk

VTEB vs. THYM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VTEB

VTEB Risk / Return Rank: 72
VTEB Sharpe Ratio Rank: 80
VTEB Sortino Ratio Rank: 86
VTEB Omega Ratio Rank: 89
VTEB Calmar Ratio Rank: 51
VTEB Martin Ratio Rank: 53

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VTEB vs. THYM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Exempt Bond ETF (VTEB) and T. Rowe Price High Income Municipal ETF (THYM). 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	THYM	Difference
Sharpe ratio Return per unit of total volatility	2.64	—	—
Sortino ratio Return per unit of downside risk	3.92	—	—
Omega ratio Gain probability vs. loss probability	1.58	—	—
Calmar ratio Return relative to maximum drawdown	2.58	—	—
Martin ratio Return 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.

Sharpe Ratios by Period

	VTEB	THYM	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	1.56	-1.09

Drawdowns

VTEB vs. THYM - Drawdown Comparison

The maximum VTEB drawdown since its inception was -17.00%, which is greater than THYM's maximum drawdown of -2.93%. Use the drawdown chart below to compare losses from any high point for VTEB and THYM.

Drawdown Indicators

	VTEB	THYM	Difference
Max Drawdown Largest peak-to-trough decline	-17.00%	-2.93%	-14.07%
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 Drawdown Current decline from peak	-0.46%	0.00%	-0.46%
Average Drawdown Average peak-to-trough decline	-2.33%	-0.49%	-1.84%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.76%	—	—

Volatility

Volatility by Period

	VTEB	THYM	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%	4.36%	-1.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.90%	4.36%	-0.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.26%	4.36%	+0.90%

VTEB vs. THYM - Expense Ratio Comparison

VTEB has a 0.05% expense ratio, which is lower than THYM's 0.32% expense ratio.

Dividends

VTEB vs. THYM - Dividend Comparison

VTEB's dividend yield for the trailing twelve months is around 3.35%, more than THYM's 2.19% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
THYM T. Rowe Price High Income Municipal ETF	2.19%	0.37%	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

Can I hold both VTEB and THYM in my portfolio?

VTEB and THYM have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VTEB or THYM?

On fees, VTEB is cheaper at 0.05% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VTEB or THYM?

VTEB is cheaper with a 0.05% expense ratio, compared with 0.32% for THYM.

Which ETF pays a higher dividend yield, VTEB or THYM?

VTEB has the higher dividend yield at 3.35%, compared with 2.19% for THYM.

What is the main difference between VTEB and THYM?

VTEB is categorized as Municipal Bonds, while THYM is High Yield Muni. They also come from different issuers: Vanguard and T. Rowe Price. Their fees differ too: 0.05% for VTEB and 0.32% for THYM.