VTEB vs. VTEAX
Compare and contrast key facts about Vanguard Tax-Exempt Bond ETF (VTEB) and Vanguard Tax-Exempt Bond Index Fund Admiral Shares (VTEAX).
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. VTEAX is managed by Vanguard. It was launched on Aug 25, 2015.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VTEB or VTEAX.
Key characteristics
| VTEB | VTEAX | |
|---|---|---|
| YTD Return | 1.58% | 1.55% |
| 1Y Return | 6.31% | 6.06% |
| 3Y Return (Ann) | -0.09% | -0.18% |
| 5Y Return (Ann) | 1.23% | 1.20% |
| Sharpe Ratio | 1.70 | 2.05 |
| Sortino Ratio | 2.48 | 3.00 |
| Omega Ratio | 1.33 | 1.48 |
| Calmar Ratio | 0.93 | 0.90 |
| Martin Ratio | 7.24 | 7.80 |
| Ulcer Index | 0.91% | 0.81% |
| Daily Std Dev | 3.90% | 3.08% |
| Max Drawdown | -17.00% | -12.74% |
| Current Drawdown | -1.22% | -1.41% |
Correlation
The correlation between VTEB and VTEAX is 0.71, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VTEB vs. VTEAX - Performance Comparison
The year-to-date returns for both stocks are quite close, with VTEB having a 1.58% return and VTEAX slightly lower at 1.55%. 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. VTEAX - Expense Ratio Comparison
VTEB has a 0.05% expense ratio, which is lower than VTEAX'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%.
Risk-Adjusted Performance
VTEB vs. VTEAX - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Exempt Bond ETF (VTEB) and Vanguard Tax-Exempt Bond Index Fund Admiral Shares (VTEAX). 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. VTEAX - Dividend Comparison
VTEB's dividend yield for the trailing twelve months is around 3.09%, which matches VTEAX's 3.07% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
VTEAX Vanguard Tax-Exempt Bond Index Fund Admiral Shares | 3.07% | 2.75% | 2.06% | 1.61% | 1.97% | 2.28% | 2.24% | 0.34% | 0.00% | 0.00% |
Drawdowns
VTEB vs. VTEAX - Drawdown Comparison
The maximum VTEB drawdown since its inception was -17.00%, which is greater than VTEAX's maximum drawdown of -12.74%. Use the drawdown chart below to compare losses from any high point for VTEB and VTEAX. For additional features, visit the drawdowns tool.
Volatility
VTEB vs. VTEAX - Volatility Comparison
Vanguard Tax-Exempt Bond ETF (VTEB) has a higher volatility of 1.97% compared to Vanguard Tax-Exempt Bond Index Fund Admiral Shares (VTEAX) at 1.61%. This indicates that VTEB's price experiences larger fluctuations and is considered to be riskier than VTEAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.