VTEB vs. VCIT
Compare and contrast key facts about Vanguard Tax-Exempt Bond ETF (VTEB) and Vanguard Intermediate-Term Corporate Bond ETF (VCIT).
VTEB and VCIT are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VTEB is a passively managed fund by Vanguard that tracks the performance of the S&P National AMT-Free Municipal Bond Index. It was launched on Aug 21, 2015. VCIT is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. 5-10 Year Corp Index. It was launched on Nov 19, 2009. Both VTEB and VCIT are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Performance
VTEB vs. VCIT - Performance Comparison
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VTEB vs. VCIT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VTEB Vanguard Tax-Exempt Bond ETF | 0.09% | 3.72% | 1.31% | 6.15% | -7.99% | 1.14% | 5.19% | 7.35% | 1.04% | 4.87% |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | -0.31% | 9.34% | 3.20% | 8.98% | -13.98% | -1.77% | 9.46% | 14.10% | -1.74% | 5.31% |
Returns By Period
In the year-to-date period, VTEB achieves a 0.09% return, which is significantly higher than VCIT's -0.31% return. Over the past 10 years, VTEB has underperformed VCIT with an annualized return of 2.09%, while VCIT has yielded a comparatively higher 3.08% annualized return.
VTEB
- 1D
- 0.32%
- 1M
- -1.61%
- YTD
- 0.09%
- 6M
- 1.54%
- 1Y
- 3.92%
- 3Y*
- 2.78%
- 5Y*
- 0.88%
- 10Y*
- 2.09%
VCIT
- 1D
- 0.14%
- 1M
- -1.52%
- YTD
- -0.31%
- 6M
- 0.49%
- 1Y
- 5.98%
- 3Y*
- 5.60%
- 5Y*
- 1.45%
- 10Y*
- 3.08%
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VTEB vs. VCIT - Expense Ratio Comparison
VTEB has a 0.05% expense ratio, which is higher than VCIT's 0.04% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Return for Risk
VTEB vs. VCIT — Risk / Return Rank
VTEB
VCIT
VTEB vs. VCIT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Exempt Bond ETF (VTEB) and Vanguard Intermediate-Term Corporate Bond ETF (VCIT). 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 | VCIT | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 0.99 | 1.24 | -0.25 |
Sortino ratioReturn per unit of downside risk | 1.25 | 1.73 | -0.48 |
Omega ratioGain probability vs. loss probability | 1.23 | 1.23 | -0.01 |
Calmar ratioReturn relative to maximum drawdown | 1.25 | 2.08 | -0.83 |
Martin ratioReturn relative to average drawdown | 3.69 | 7.27 | -3.59 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VTEB | VCIT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.99 | 1.24 | -0.25 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.23 | 0.22 | +0.01 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.40 | 0.49 | -0.09 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.45 | 0.76 | -0.30 |
Correlation
The correlation between VTEB and VCIT is 0.64, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Dividends
VTEB vs. VCIT - Dividend Comparison
VTEB's dividend yield for the trailing twelve months is around 3.37%, less than VCIT's 4.76% yield.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VTEB Vanguard Tax-Exempt Bond ETF | 3.37% | 3.29% | 3.14% | 2.79% | 2.09% | 1.64% | 1.99% | 2.30% | 2.25% | 1.96% | 1.66% | 0.58% |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 4.76% | 4.62% | 4.43% | 3.72% | 3.03% | 2.87% | 2.78% | 3.37% | 3.61% | 3.21% | 3.29% | 3.34% |
Drawdowns
VTEB vs. VCIT - Drawdown Comparison
The maximum VTEB drawdown since its inception was -17.00%, smaller than the maximum VCIT drawdown of -20.56%. Use the drawdown chart below to compare losses from any high point for VTEB and VCIT.
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Drawdown Indicators
| VTEB | VCIT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.00% | -20.56% | +3.56% |
Max Drawdown (1Y)Largest decline over 1 year | -3.45% | -2.99% | -0.46% |
Max Drawdown (5Y)Largest decline over 5 years | -12.64% | -20.56% | +7.92% |
Max Drawdown (10Y)Largest decline over 10 years | -17.00% | -20.56% | +3.56% |
Current DrawdownCurrent decline from peak | -1.86% | -1.84% | -0.02% |
Average DrawdownAverage peak-to-trough decline | -2.35% | -3.18% | +0.83% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.17% | 0.86% | +0.31% |
Volatility
VTEB vs. VCIT - Volatility Comparison
The current volatility for Vanguard Tax-Exempt Bond ETF (VTEB) is 1.37%, while Vanguard Intermediate-Term Corporate Bond ETF (VCIT) has a volatility of 2.08%. This indicates that VTEB experiences smaller price fluctuations and is considered to be less risky than VCIT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTEB | VCIT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.37% | 2.08% | -0.71% |
Volatility (6M)Calculated over the trailing 6-month period | 1.87% | 2.84% | -0.97% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.00% | 4.85% | -0.85% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.88% | 6.60% | -2.72% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.25% | 6.27% | -1.02% |