VTEB vs. VB
VTEB (Vanguard Tax-Exempt Bond ETF) and VB (Vanguard Small-Cap ETF) are both exchange-traded funds - VTEB is a Municipal Bonds fund tracking the S&P National AMT-Free Municipal Bond Index, while VB is a Small Cap Blend Equities fund tracking the CRSP US Small Cap Index. Both are passively managed. Over the past 10 years, VTEB returned 2.03%/yr vs 11.61%/yr for VB. At a 0.03 correlation, their price movements are largely independent. VTEB charges 0.03%/yr vs 0.05%/yr for VB.
Performance
VTEB vs. VB - Performance Comparison
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Returns By Period
In the year-to-date period, VTEB achieves a 1.44% return, which is significantly lower than VB's 15.33% return. Over the past 10 years, VTEB has underperformed VB with an annualized return of 2.03%, while VB has yielded a comparatively higher 11.61% annualized return.
VTEB
- 1D
- -0.08%
- 1M
- 0.68%
- YTD
- 1.44%
- 6M
- 1.95%
- 1Y
- 6.33%
- 3Y*
- 3.44%
- 5Y*
- 0.80%
- 10Y*
- 2.03%
VB
- 1D
- 0.70%
- 1M
- 3.75%
- YTD
- 15.33%
- 6M
- 13.69%
- 1Y
- 28.72%
- 3Y*
- 16.14%
- 5Y*
- 6.98%
- 10Y*
- 11.61%
VTEB vs. VB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VTEB Vanguard Tax-Exempt Bond ETF | 1.44% | 3.72% | 1.31% | 6.15% | -7.99% | 1.14% | 5.19% | 7.35% | 1.04% | 4.87% |
VB Vanguard Small-Cap ETF | 15.33% | 8.87% | 14.17% | 18.22% | -17.51% | 17.57% | 19.19% | 27.34% | -9.34% | 16.26% |
Correlation
The correlation between VTEB and VB is 0.28, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.28 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.25 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.18 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.06 |
Correlation (All Time) Calculated using the full available price history since Aug 25, 2015 | 0.03 |
Over the past year, VTEB and VB have become more correlated (0.28) than their long-term average of 0.03, meaning their price movements have been converging.
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Return for Risk
VTEB vs. VB — Risk / Return Rank
VTEB
VB
VTEB vs. VB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Exempt Bond ETF (VTEB) and Vanguard Small-Cap ETF (VB). 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| VTEB | VB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.65 | ||
| Sortino ratioReturn per unit of downside risk | +1.03 | ||
| Omega ratioGain probability vs. loss probability | 1.51 | 1.30 | +0.21 |
| Calmar ratioReturn relative to maximum drawdown | 2.35 | 3.21 | -0.87 |
| Martin ratioReturn relative to average drawdown | 8.30 | 11.80 | -3.50 |
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Drawdowns
VTEB vs. VB - Drawdown Comparison
The maximum VTEB drawdown since its inception was -17.00%, smaller than the maximum VB drawdown of -59.56%. Use the drawdown chart below to compare losses from any high point for VTEB and VB.
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Drawdown Indicators
| VTEB | VB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.00% | -59.56% | +42.56% |
Max Drawdown (1Y)Largest decline over 1 year | -2.71% | -8.98% | +6.27% |
Max Drawdown (3Y)Largest decline over 3 years | -5.53% | -25.36% | +19.83% |
Max Drawdown (5Y)Largest decline over 5 years | -12.64% | -28.15% | +15.51% |
Max Drawdown (10Y)Largest decline over 10 years | -17.00% | -42.05% | +25.05% |
Current DrawdownCurrent decline from peak | -0.54% | 0.00% | -0.54% |
Average DrawdownAverage peak-to-trough decline | -2.32% | -8.43% | +6.11% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.77% | 2.44% | -1.67% |
Volatility
VTEB vs. VB - Volatility Comparison
The current volatility for Vanguard Tax-Exempt Bond ETF (VTEB) is 0.93%, while Vanguard Small-Cap ETF (VB) has a volatility of 5.41%. This indicates that VTEB experiences smaller price fluctuations and is considered to be less risky than VB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTEB | VB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.93% | 5.41% | -4.48% |
Volatility (6M)Calculated over the trailing 6-month period | 2.04% | 12.24% | -10.20% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.70% | 16.68% | -13.98% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.90% | 20.80% | -16.90% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.26% | 21.44% | -16.18% |
VTEB vs. VB - Expense Ratio Comparison
VTEB has a 0.03% expense ratio, which is lower than VB's 0.05% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
VTEB vs. VB - Dividend Comparison
VTEB's dividend yield for the trailing twelve months is around 3.36%, more than VB's 1.18% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VB Vanguard Small-Cap ETF | 1.18% | 1.33% | 1.30% | 1.55% | 1.59% | 1.24% | 1.14% | 1.39% | 1.67% | 1.35% | 1.50% | 1.48% |
VTEB Vanguard Tax-Exempt Bond ETF | 3.36% | 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 VB have a correlation of 0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VB has higher volatility (5.41%) compared to VTEB (0.93%). In terms of maximum drawdown, VTEB dropped -17.00% vs VB's -59.56%.
On 10-year performance, VB leads with 11.61% vs 2.03% for VTEB. On fees, VTEB is cheaper at 0.03% per year. On volatility, VTEB has been the lower-risk option at 0.93%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VB has performed better with a 11.61% return vs 2.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTEB is cheaper with a 0.03% expense ratio, compared with 0.05% for VB.
VTEB has the higher dividend yield at 3.36%, compared with 1.18% for VB.
VTEB is categorized as Municipal Bonds, while VB is Small Cap Blend Equities. VTEB tracks S&P National AMT-Free Municipal Bond Index, while VB tracks CRSP US Small Cap Index. Their fees differ too: 0.03% for VTEB and 0.05% for VB.
VTEB currently has the higher Sharpe Ratio (2.38 vs 1.73), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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