VTEB vs. VDC
VTEB (Vanguard Tax-Exempt Bond ETF) and VDC (Vanguard Consumer Staples ETF) are both exchange-traded funds - VTEB is a Municipal Bonds fund tracking the S&P National AMT-Free Municipal Bond Index, while VDC is a Consumer Staples Equities fund tracking the MSCI US Investable Market Consumer Staples 25/50 Index. Both are passively managed. Over the past 10 years, VTEB returned 2.03%/yr vs 8.03%/yr for VDC. At a 0.08 correlation, their price movements are largely independent. VTEB charges 0.03%/yr vs 0.09%/yr for VDC.
Performance
VTEB vs. VDC - 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 VDC's 10.55% return. Over the past 10 years, VTEB has underperformed VDC with an annualized return of 2.03%, while VDC has yielded a comparatively higher 8.03% annualized return.
VTEB
- 1D
- -0.08%
- 1M
- 0.78%
- YTD
- 1.44%
- 6M
- 1.95%
- 1Y
- 6.57%
- 3Y*
- 3.44%
- 5Y*
- 0.80%
- 10Y*
- 2.03%
VDC
- 1D
- 0.65%
- 1M
- 0.13%
- YTD
- 10.55%
- 6M
- 8.59%
- 1Y
- 8.56%
- 3Y*
- 9.05%
- 5Y*
- 7.16%
- 10Y*
- 8.03%
VTEB vs. VDC - 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% |
VDC Vanguard Consumer Staples ETF | 10.55% | 2.17% | 13.30% | 2.38% | -1.79% | 17.64% | 10.86% | 26.11% | -7.79% | 11.85% |
Correlation
The correlation between VTEB and VDC is 0.14, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.14 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.18 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.17 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.11 |
Correlation (All Time) Calculated using the full available price history since Aug 25, 2015 | 0.08 |
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Return for Risk
VTEB vs. VDC — Risk / Return Rank
VTEB
VDC
VTEB vs. VDC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Exempt Bond ETF (VTEB) and Vanguard Consumer Staples ETF (VDC). 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 | VDC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.79 | ||
| Sortino ratioReturn per unit of downside risk | +2.57 | ||
| Omega ratioGain probability vs. loss probability | 1.51 | 1.11 | +0.41 |
| Calmar ratioReturn relative to maximum drawdown | 2.35 | 0.79 | +1.56 |
| Martin ratioReturn relative to average drawdown | 8.30 | 1.60 | +6.70 |
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Drawdowns
VTEB vs. VDC - Drawdown Comparison
The maximum VTEB drawdown since its inception was -17.00%, smaller than the maximum VDC drawdown of -34.24%. Use the drawdown chart below to compare losses from any high point for VTEB and VDC.
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Drawdown Indicators
| VTEB | VDC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.00% | -34.24% | +17.24% |
Max Drawdown (1Y)Largest decline over 1 year | -2.71% | -9.28% | +6.57% |
Max Drawdown (3Y)Largest decline over 3 years | -5.53% | -11.78% | +6.25% |
Max Drawdown (5Y)Largest decline over 5 years | -12.64% | -16.55% | +3.91% |
Max Drawdown (10Y)Largest decline over 10 years | -17.00% | -25.31% | +8.31% |
Current DrawdownCurrent decline from peak | -0.54% | -4.37% | +3.83% |
Average DrawdownAverage peak-to-trough decline | -2.32% | -3.73% | +1.41% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.77% | 4.57% | -3.80% |
Volatility
VTEB vs. VDC - Volatility Comparison
The current volatility for Vanguard Tax-Exempt Bond ETF (VTEB) is 0.93%, while Vanguard Consumer Staples ETF (VDC) has a volatility of 4.62%. This indicates that VTEB experiences smaller price fluctuations and is considered to be less risky than VDC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTEB | VDC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.93% | 4.62% | -3.69% |
Volatility (6M)Calculated over the trailing 6-month period | 2.04% | 10.02% | -7.98% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.70% | 12.57% | -9.87% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.90% | 13.17% | -9.27% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.26% | 14.66% | -9.40% |
VTEB vs. VDC - Expense Ratio Comparison
VTEB has a 0.03% expense ratio, which is lower than VDC's 0.09% 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. VDC - Dividend Comparison
VTEB's dividend yield for the trailing twelve months is around 3.36%, more than VDC's 2.08% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VDC Vanguard Consumer Staples ETF | 2.08% | 2.26% | 2.33% | 2.65% | 2.37% | 2.14% | 2.50% | 2.44% | 2.78% | 2.52% | 2.39% | 2.55% |
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 VDC have a correlation of 0.14, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VDC has higher volatility (4.62%) compared to VTEB (0.93%). In terms of maximum drawdown, VTEB dropped -17.00% vs VDC's -34.24%.
On 10-year performance, VDC leads with 8.03% 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, VDC has performed better with a 8.03% 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 0.09% for VDC.
VTEB has the higher dividend yield at 3.36%, compared with 2.08% for VDC.
VTEB is categorized as Municipal Bonds, while VDC is Consumer Staples Equities. VTEB tracks S&P National AMT-Free Municipal Bond Index, while VDC tracks MSCI US Investable Market Consumer Staples 25/50 Index. Their fees differ too: 0.03% for VTEB and 0.09% for VDC.
VTEB currently has the higher Sharpe Ratio (2.38 vs 0.58), 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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