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.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VTEB or VCIT.
Key characteristics
| VTEB | VCIT | |
|---|---|---|
| YTD Return | 1.58% | 3.22% |
| 1Y Return | 6.31% | 9.22% |
| 3Y Return (Ann) | -0.09% | -0.87% |
| 5Y Return (Ann) | 1.23% | 0.98% |
| Sharpe Ratio | 1.70 | 1.76 |
| Sortino Ratio | 2.48 | 2.61 |
| Omega Ratio | 1.33 | 1.31 |
| Calmar Ratio | 0.93 | 0.76 |
| Martin Ratio | 7.24 | 7.10 |
| Ulcer Index | 0.91% | 1.40% |
| Daily Std Dev | 3.90% | 5.66% |
| Max Drawdown | -17.00% | -20.56% |
| Current Drawdown | -1.22% | -5.16% |
Correlation
The correlation between VTEB and VCIT is 0.63, 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.
Performance
VTEB vs. VCIT - Performance Comparison
In the year-to-date period, VTEB achieves a 1.58% return, which is significantly lower than VCIT's 3.22% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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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%.
Risk-Adjusted Performance
VTEB vs. VCIT - Risk-Adjusted Performance 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.
Dividends
VTEB vs. VCIT - Dividend Comparison
VTEB's dividend yield for the trailing twelve months is around 3.09%, less than VCIT's 4.30% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VTEB Vanguard Tax-Exempt Bond ETF | 3.09% | 2.79% | 2.09% | 1.65% | 1.99% | 2.30% | 2.25% | 1.96% | 1.66% | 0.58% | 0.00% | 0.00% |
VCIT Vanguard Intermediate-Term Corporate Bond ETF | 4.30% | 3.72% | 3.04% | 2.88% | 2.78% | 3.37% | 3.61% | 3.21% | 3.29% | 3.34% | 3.34% | 4.00% |
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. For additional features, visit the drawdowns tool.
Volatility
VTEB vs. VCIT - Volatility Comparison
Vanguard Tax-Exempt Bond ETF (VTEB) has a higher volatility of 1.97% compared to Vanguard Intermediate-Term Corporate Bond ETF (VCIT) at 1.74%. This indicates that VTEB's price experiences larger fluctuations and is considered to be riskier than VCIT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.