VTEB vs. VCIT
VTEB (Vanguard Tax-Exempt Bond ETF) and VCIT (Vanguard Intermediate-Term Corporate Bond ETF) are both exchange-traded funds - VTEB is a Municipal Bonds fund tracking the S&P National AMT-Free Municipal Bond Index, while VCIT is a Corporate Bonds fund tracking the Barclays U.S. 5-10 Year Corp Index. Both are passively managed. Over the past 10 years, VTEB returned 2.09%/yr vs 2.93%/yr for VCIT. A 0.64 correlation means they provide meaningful diversification when combined. VTEB charges 0.03%/yr vs 0.04%/yr for VCIT.
Performance
VTEB vs. VCIT - Performance Comparison
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Returns By Period
In the year-to-date period, VTEB achieves a 1.46% return, which is significantly higher than VCIT's 0.18% return. Over the past 10 years, VTEB has underperformed VCIT with an annualized return of 2.09%, while VCIT has yielded a comparatively higher 2.93% annualized return.
VTEB
- 1D
- -0.06%
- 1M
- 0.66%
- YTD
- 1.46%
- 6M
- 1.89%
- 1Y
- 7.14%
- 3Y*
- 3.57%
- 5Y*
- 0.88%
- 10Y*
- 2.09%
VCIT
- 1D
- -0.22%
- 1M
- 0.28%
- YTD
- 0.18%
- 6M
- 0.07%
- 1Y
- 6.13%
- 3Y*
- 6.00%
- 5Y*
- 1.22%
- 10Y*
- 2.93%
VTEB vs. VCIT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VTEB Vanguard Tax-Exempt Bond ETF | 1.46% | 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 | 0.18% | 9.34% | 3.20% | 8.98% | -13.98% | -1.77% | 9.46% | 14.10% | -1.74% | 5.31% |
Correlation
The correlation between VTEB and VCIT is 0.66, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.66 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.76 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.71 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.65 |
Correlation (All Time) Calculated using the full available price history since Aug 26, 2015 | 0.64 |
The correlation between VTEB and VCIT shifts across timeframes, from 0.64 (all time) to 0.76 (3 years), reflecting how their relationship changes across market environments.
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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 | +1.14 | ||
| Sortino ratioReturn per unit of downside risk | +1.70 | ||
| Omega ratioGain probability vs. loss probability | 1.58 | 1.27 | +0.31 |
| Calmar ratioReturn relative to maximum drawdown | 2.65 | 2.08 | +0.57 |
| Martin ratioReturn relative to average drawdown | 9.41 | 6.95 | +2.46 |
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 | 2.64 | 1.50 | +1.14 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.23 | 0.19 | +0.04 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.40 | 0.47 | -0.07 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.47 | 0.75 | -0.28 |
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 | -2.71% | -2.96% | +0.25% |
Max Drawdown (3Y)Largest decline over 3 years | -5.53% | -6.11% | +0.58% |
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 | -0.52% | -1.36% | +0.84% |
Average DrawdownAverage peak-to-trough decline | -2.33% | -3.16% | +0.83% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.76% | 0.88% | -0.12% |
Volatility
VTEB vs. VCIT - Volatility Comparison
The current volatility for Vanguard Tax-Exempt Bond ETF (VTEB) is 0.89%, while Vanguard Intermediate-Term Corporate Bond ETF (VCIT) has a volatility of 1.38%. 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 | 0.89% | 1.38% | -0.49% |
Volatility (6M)Calculated over the trailing 6-month period | 2.01% | 3.06% | -1.05% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.72% | 4.10% | -1.38% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.90% | 6.61% | -2.71% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.26% | 6.28% | -1.02% |
VTEB vs. VCIT - Expense Ratio Comparison
VTEB has a 0.03% expense ratio, which is lower than VCIT's 0.04% 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. VCIT - Dividend Comparison
VTEB's dividend yield for the trailing twelve months is around 3.35%, less than VCIT's 4.80% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 4.80% | 4.62% | 4.43% | 3.72% | 3.03% | 2.87% | 2.78% | 3.37% | 3.61% | 3.21% | 3.29% | 3.34% |
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 VCIT have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VCIT has higher volatility (1.38%) compared to VTEB (0.89%). In terms of maximum drawdown, VTEB dropped -17.00% vs VCIT's -20.56%.
On 10-year performance, VCIT leads with 2.93% vs 2.09% for VTEB. On fees, VTEB is cheaper at 0.03% per year. On volatility, VTEB has been the lower-risk option at 0.89%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VCIT has performed better with a 2.93% return vs 2.09%. 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 0.04% for VCIT.
VCIT has the higher dividend yield at 4.80%, compared with 3.35% for VTEB.
VTEB is categorized as Municipal Bonds, while VCIT is Corporate Bonds. VTEB tracks S&P National AMT-Free Municipal Bond Index, while VCIT tracks Barclays U.S. 5-10 Year Corp Index. Their fees differ too: 0.03% for VTEB and 0.04% for VCIT.
VTEB currently has the higher Sharpe Ratio (2.64 vs 1.50), 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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