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VTEB vs. VIG
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VTEB vs. VIG

Last updated Jun 4, 2026

VTEB (Vanguard Tax-Exempt Bond ETF) and VIG (Vanguard Dividend Appreciation ETF) are both exchange-traded funds - VTEB is a Municipal Bonds fund tracking the S&P National AMT-Free Municipal Bond Index, while VIG is a Dividend fund tracking the S&P U.S. Dividend Growers Index. Both are passively managed. Over the past 10 years, VTEB returned 2.09%/yr vs 13.23%/yr for VIG. At a 0.04 correlation, their price movements are largely independent. VTEB charges 0.05%/yr vs 0.04%/yr for VIG.

Performance

VTEB vs. VIG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Tax-Exempt Bond ETF (VTEB) and Vanguard Dividend Appreciation ETF (VIG). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VTEB achieves a 1.46% return, which is significantly lower than VIG's 7.57% return. Over the past 10 years, VTEB has underperformed VIG with an annualized return of 2.09%, while VIG has yielded a comparatively higher 13.23% 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%

VIG

1D
-0.19%
1M
3.79%
YTD
7.57%
6M
6.99%
1Y
19.63%
3Y*
16.49%
5Y*
10.62%
10Y*
13.23%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VTEB vs. VIG - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
VIG
Vanguard Dividend Appreciation ETF		7.57%14.17%16.99%14.51%-9.80%23.76%15.43%29.62%-2.08%22.22%

Correlation

The correlation between VTEB and VIG is 0.26, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.26

Correlation (3Y)
Calculated over the trailing 3-year period

0.23

Correlation (5Y)
Calculated over the trailing 5-year period

0.19

Correlation (10Y)
Calculated over the trailing 10-year period

0.07

Correlation (All Time)
Calculated using the full available price history since Aug 26, 2015

0.04

Over the past year, VTEB and VIG have become more correlated (0.26) than their long-term average of 0.04, meaning their price movements have been converging.

Compare stocks, funds, or ETFs

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Vanguard Tax-Exempt Bond ETF

Vanguard Dividend Appreciation ETF

Often compared with VTEB:
VTEB vs. MUBVTEB vs. VTESVTEB vs. BNDVTEB vs. VWIUXVTEB vs. VTEIVTEB vs. VWAHXVTEB vs. VTEAX
Often compared with VIG:
VIG vs. SCHDVIG vs. VYMVIG vs. VOOVIG vs. DGROVIG vs. VDIGXVIG vs. VTIVIG vs. VTV

Return for Risk

VTEB vs. VIG — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VTEB
VTEB Risk / Return Rank: 7272
Overall Rank
VTEB Sharpe Ratio Rank: 8080
Sharpe Ratio Rank
VTEB Sortino Ratio Rank: 8585
Sortino Ratio Rank
VTEB Omega Ratio Rank: 8989
Omega Ratio Rank
VTEB Calmar Ratio Rank: 5252
Calmar Ratio Rank
VTEB Martin Ratio Rank: 5454
Martin Ratio Rank
VIG
VIG Risk / Return Rank: 5656
Overall Rank
VIG Sharpe Ratio Rank: 5757
Sharpe Ratio Rank
VIG Sortino Ratio Rank: 6060
Sortino Ratio Rank
VIG Omega Ratio Rank: 5656
Omega Ratio Rank
VIG Calmar Ratio Rank: 5050
Calmar Ratio Rank
VIG Martin Ratio Rank: 5656
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VTEB vs. VIG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Exempt Bond ETF (VTEB) and Vanguard Dividend Appreciation ETF (VIG). 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.

VTEBVIGDifference

Sharpe ratio

Return per unit of total volatility

2.64

1.97

+0.67

Sortino ratio

Return per unit of downside risk

3.92

2.88

+1.04

Omega ratio

Gain probability vs. loss probability

1.58

1.35

+0.23

Calmar ratio

Return relative to maximum drawdown

2.65

2.49

+0.16

Martin ratio

Return relative to average drawdown

9.41

10.06

-0.65

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VTEB vs. VIG - Sharpe Ratio Comparison

The current VTEB Sharpe Ratio is 2.64, which is higher than the VIG Sharpe Ratio of 1.97. The chart below compares the historical Sharpe Ratios of VTEB and VIG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

VTEBVIGDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.64

1.97

+0.67

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.23

0.75

-0.52

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.40

0.83

-0.43

Sharpe Ratio (All Time)

Calculated using the full available price history

0.47

0.60

-0.12

Drawdowns

VTEB vs. VIG - Drawdown Comparison

The maximum VTEB drawdown since its inception was -17.00%, smaller than the maximum VIG drawdown of -46.81%. Use the drawdown chart below to compare losses from any high point for VTEB and VIG.

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Drawdown Indicators

VTEBVIGDifference

Max Drawdown

Largest peak-to-trough decline

-17.00%

-46.81%

+29.81%

Max Drawdown (1Y)

Largest decline over 1 year

-2.71%

-7.91%

+5.20%

Max Drawdown (3Y)

Largest decline over 3 years

-5.53%

-14.95%

+9.42%

Max Drawdown (5Y)

Largest decline over 5 years

-12.64%

-20.39%

+7.75%

Max Drawdown (10Y)

Largest decline over 10 years

-17.00%

-31.72%

+14.72%

Current Drawdown

Current decline from peak

-0.52%

-0.19%

-0.33%

Average Drawdown

Average peak-to-trough decline

-2.33%

-5.51%

+3.18%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.76%

1.96%

-1.20%

Volatility

VTEB vs. VIG - Volatility Comparison

The current volatility for Vanguard Tax-Exempt Bond ETF (VTEB) is 0.89%, while Vanguard Dividend Appreciation ETF (VIG) has a volatility of 2.19%. This indicates that VTEB experiences smaller price fluctuations and is considered to be less risky than VIG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VTEBVIGDifference

Volatility (1M)

Calculated over the trailing 1-month period

0.89%

2.19%

-1.30%

Volatility (6M)

Calculated over the trailing 6-month period

2.01%

7.57%

-5.56%

Volatility (1Y)

Calculated over the trailing 1-year period

2.72%

10.01%

-7.29%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

3.90%

14.23%

-10.33%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

5.26%

16.05%

-10.79%

VTEB vs. VIG - Expense Ratio Comparison

VTEB has a 0.05% expense ratio, which is higher than VIG'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%.

Dividends

VTEB vs. VIG - Dividend Comparison

VTEB's dividend yield for the trailing twelve months is around 3.35%, more than VIG's 1.47% yield.

PositionTTM20252024202320222021202020192018201720162015
VIG
Vanguard Dividend Appreciation ETF		1.47%1.62%1.73%1.88%1.96%1.55%1.63%1.71%2.08%1.88%2.14%2.34%
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 VIG have a correlation of 0.26, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VIG has higher volatility (2.19%) compared to VTEB (0.89%). In terms of maximum drawdown, VTEB dropped -17.00% vs VIG's -46.81%.

On 10-year performance, VIG leads with 13.23% vs 2.09% for VTEB. On fees, VIG is cheaper at 0.04% 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, VIG has performed better with a 13.23% return vs 2.09%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VIG is cheaper with a 0.04% expense ratio, compared with 0.05% for VTEB.

VTEB has the higher dividend yield at 3.35%, compared with 1.47% for VIG.

VTEB is categorized as Municipal Bonds, while VIG is Dividend. VTEB tracks S&P National AMT-Free Municipal Bond Index, while VIG tracks S&P U.S. Dividend Growers Index. Their fees differ too: 0.05% for VTEB and 0.04% for VIG.

VTEB currently has the higher Sharpe Ratio (2.64 vs 1.97), 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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