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VTEB vs. VXUS
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VTEB vs. VXUS

Last updated Jun 4, 2026

VTEB (Vanguard Tax-Exempt Bond ETF) and VXUS (Vanguard Total International Stock ETF) are both exchange-traded funds - VTEB is a Municipal Bonds fund tracking the S&P National AMT-Free Municipal Bond Index, while VXUS is a Global Equities fund tracking the FTSE Global All Cap ex US Index. Both are passively managed. Over the past 10 years, VTEB returned 2.09%/yr vs 9.76%/yr for VXUS. At a 0.06 correlation, their price movements are largely independent. Both charge a 0.05% expense ratio.

Performance

VTEB vs. VXUS - Performance Comparison

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

Loading charts...

Returns By Period

In the year-to-date period, VTEB achieves a 1.46% return, which is significantly lower than VXUS's 14.25% return. Over the past 10 years, VTEB has underperformed VXUS with an annualized return of 2.09%, while VXUS has yielded a comparatively higher 9.76% 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%

VXUS

1D
-0.99%
1M
4.68%
YTD
14.25%
6M
16.92%
1Y
32.01%
3Y*
19.30%
5Y*
8.46%
10Y*
9.76%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VTEB vs. VXUS - 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%
VXUS
Vanguard Total International Stock ETF		14.25%32.35%5.08%15.86%-16.08%8.98%10.66%21.75%-14.43%27.46%

Correlation

The correlation between VTEB and VXUS is 0.33, which is low. Their price movements are largely independent, making them effective diversification partners.

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

0.33

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

0.29

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

0.23

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

0.09

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

0.06

Over the past year, VTEB and VXUS have become more correlated (0.33) than their long-term average of 0.06, meaning their price movements have been converging.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard Tax-Exempt Bond ETF

Vanguard Total International Stock ETF

Often compared with VTEB:
VTEB vs. MUBVTEB vs. VTESVTEB vs. BNDVTEB vs. VWIUXVTEB vs. VTEIVTEB vs. VWAHXVTEB vs. VTEAX
Often compared with VXUS:
VXUS vs. VTIVXUS vs. VOOVXUS vs. VTVXUS vs. VEAVXUS vs. FZILXVXUS vs. VEUVXUS vs. SCHF

Return for Risk

VTEB vs. VXUS — 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
VXUS
VXUS Risk / Return Rank: 6060
Overall Rank
VXUS Sharpe Ratio Rank: 6161
Sharpe Ratio Rank
VXUS Sortino Ratio Rank: 6060
Sortino Ratio Rank
VXUS Omega Ratio Rank: 6262
Omega Ratio Rank
VXUS Calmar Ratio Rank: 5656
Calmar Ratio Rank
VXUS Martin Ratio Rank: 6161
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. VXUS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Exempt Bond ETF (VTEB) and Vanguard Total International Stock ETF (VXUS). 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.

VTEBVXUSDifference

Sharpe ratio

Return per unit of total volatility

2.64

2.12

+0.53

Sortino ratio

Return per unit of downside risk

3.92

2.90

+1.02

Omega ratio

Gain probability vs. loss probability

1.58

1.39

+0.19

Calmar ratio

Return relative to maximum drawdown

2.65

2.85

-0.20

Martin ratio

Return relative to average drawdown

9.41

11.14

-1.73

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. VXUS - Sharpe Ratio Comparison

The current VTEB Sharpe Ratio is 2.64, which is comparable to the VXUS Sharpe Ratio of 2.12. The chart below compares the historical Sharpe Ratios of VTEB and VXUS, 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

VTEBVXUSDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.64

2.12

+0.53

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.23

0.53

-0.30

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.40

0.57

-0.17

Sharpe Ratio (All Time)

Calculated using the full available price history

0.47

0.39

+0.09

Drawdowns

VTEB vs. VXUS - Drawdown Comparison

The maximum VTEB drawdown since its inception was -17.00%, smaller than the maximum VXUS drawdown of -35.97%. Use the drawdown chart below to compare losses from any high point for VTEB and VXUS.

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Drawdown Indicators

VTEBVXUSDifference

Max Drawdown

Largest peak-to-trough decline

-17.00%

-35.97%

+18.97%

Max Drawdown (1Y)

Largest decline over 1 year

-2.71%

-11.27%

+8.56%

Max Drawdown (3Y)

Largest decline over 3 years

-5.53%

-13.58%

+8.05%

Max Drawdown (5Y)

Largest decline over 5 years

-12.64%

-29.44%

+16.80%

Max Drawdown (10Y)

Largest decline over 10 years

-17.00%

-35.97%

+18.97%

Current Drawdown

Current decline from peak

-0.52%

-0.99%

+0.47%

Average Drawdown

Average peak-to-trough decline

-2.33%

-8.22%

+5.89%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.76%

2.88%

-2.12%

Volatility

VTEB vs. VXUS - Volatility Comparison

The current volatility for Vanguard Tax-Exempt Bond ETF (VTEB) is 0.89%, while Vanguard Total International Stock ETF (VXUS) has a volatility of 5.60%. This indicates that VTEB experiences smaller price fluctuations and is considered to be less risky than VXUS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VTEBVXUSDifference

Volatility (1M)

Calculated over the trailing 1-month period

0.89%

5.60%

-4.71%

Volatility (6M)

Calculated over the trailing 6-month period

2.01%

13.00%

-10.99%

Volatility (1Y)

Calculated over the trailing 1-year period

2.72%

15.21%

-12.49%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

3.90%

16.05%

-12.15%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

5.26%

17.16%

-11.90%

VTEB vs. VXUS - Expense Ratio Comparison

Both VTEB and VXUS have an expense ratio of 0.05%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VTEB vs. VXUS - Dividend Comparison

VTEB's dividend yield for the trailing twelve months is around 3.35%, more than VXUS's 2.66% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
VXUS
Vanguard Total International Stock ETF		2.66%3.18%3.37%3.24%3.09%3.10%2.14%3.06%3.18%2.73%2.93%2.83%

Frequently Asked Questions

VTEB and VXUS have a correlation of 0.33, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VXUS has higher volatility (5.60%) compared to VTEB (0.89%). In terms of maximum drawdown, VTEB dropped -17.00% vs VXUS's -35.97%.

On 10-year performance, VXUS leads with 9.76% vs 2.09% for VTEB. Both ETFs have the same 0.05% expense ratio. 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, VXUS has performed better with a 9.76% return vs 2.09%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VTEB and VXUS have the same expense ratio: 0.05% per year.

VTEB has the higher dividend yield at 3.35%, compared with 2.66% for VXUS.

VTEB is categorized as Municipal Bonds, while VXUS is Global Equities. VTEB tracks S&P National AMT-Free Municipal Bond Index, while VXUS tracks FTSE Global All Cap ex US Index.

VTEB currently has the higher Sharpe Ratio (2.64 vs 2.12), 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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