VTEB vs. XBI
VTEB (Vanguard Tax-Exempt Bond ETF) and XBI (SPDR S&P Biotech ETF) are both exchange-traded funds - VTEB is a Municipal Bonds fund tracking the S&P National AMT-Free Municipal Bond Index, while XBI is a Health & Biotech Equities fund tracking the S&P Biotechnology Select Industry Index. Both are passively managed. Over the past 10 years, VTEB returned 2.02%/yr vs 9.98%/yr for XBI. At a 0.06 correlation, their price movements are largely independent. VTEB charges 0.03%/yr vs 0.35%/yr for XBI.
Performance
VTEB vs. XBI - Performance Comparison
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Returns By Period
In the year-to-date period, VTEB achieves a 1.54% return, which is significantly lower than XBI's 11.87% return. Over the past 10 years, VTEB has underperformed XBI with an annualized return of 2.02%, while XBI has yielded a comparatively higher 9.98% annualized return.
VTEB
- 1D
- 0.10%
- 1M
- 1.32%
- YTD
- 1.54%
- 6M
- 1.95%
- 1Y
- 6.68%
- 3Y*
- 3.38%
- 5Y*
- 0.88%
- 10Y*
- 2.02%
XBI
- 1D
- 1.95%
- 1M
- 4.37%
- YTD
- 11.87%
- 6M
- 11.41%
- 1Y
- 63.76%
- 3Y*
- 16.08%
- 5Y*
- 0.52%
- 10Y*
- 9.98%
VTEB vs. XBI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VTEB Vanguard Tax-Exempt Bond ETF | 1.54% | 3.72% | 1.31% | 6.15% | -7.99% | 1.14% | 5.19% | 7.35% | 1.04% | 4.87% |
XBI SPDR S&P Biotech ETF | 11.87% | 35.89% | 1.01% | 7.60% | -25.87% | -20.45% | 48.33% | 32.56% | -15.28% | 43.77% |
Correlation
The correlation between VTEB and XBI is 0.22, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.22 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.25 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.19 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.08 |
Correlation (All Time) Calculated using the full available price history since Aug 25, 2015 | 0.06 |
The correlation between VTEB and XBI shifts across timeframes, from 0.06 (all time) to 0.25 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
VTEB vs. XBI — Risk / Return Rank
VTEB
XBI
VTEB vs. XBI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Exempt Bond ETF (VTEB) and SPDR S&P Biotech ETF (XBI). 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 | XBI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.06 | ||
| Sortino ratioReturn per unit of downside risk | +0.42 | ||
| Omega ratioGain probability vs. loss probability | 1.55 | 1.39 | +0.16 |
| Calmar ratioReturn relative to maximum drawdown | 2.48 | 6.59 | -4.12 |
| Martin ratioReturn relative to average drawdown | 8.75 | 19.47 | -10.72 |
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Drawdowns
VTEB vs. XBI - Drawdown Comparison
The maximum VTEB drawdown since its inception was -17.00%, smaller than the maximum XBI drawdown of -63.89%. Use the drawdown chart below to compare losses from any high point for VTEB and XBI.
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Drawdown Indicators
| VTEB | XBI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.00% | -63.89% | +46.89% |
Max Drawdown (1Y)Largest decline over 1 year | -2.71% | -9.72% | +7.01% |
Max Drawdown (3Y)Largest decline over 3 years | -5.53% | -32.99% | +27.46% |
Max Drawdown (5Y)Largest decline over 5 years | -12.64% | -54.71% | +42.07% |
Max Drawdown (10Y)Largest decline over 10 years | -17.00% | -63.89% | +46.89% |
Current DrawdownCurrent decline from peak | -0.44% | -21.16% | +20.72% |
Average DrawdownAverage peak-to-trough decline | -2.32% | -20.93% | +18.61% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.77% | 3.29% | -2.52% |
Volatility
VTEB vs. XBI - Volatility Comparison
The current volatility for Vanguard Tax-Exempt Bond ETF (VTEB) is 0.92%, while SPDR S&P Biotech ETF (XBI) has a volatility of 10.55%. This indicates that VTEB experiences smaller price fluctuations and is considered to be less risky than XBI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTEB | XBI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.92% | 10.55% | -9.63% |
Volatility (6M)Calculated over the trailing 6-month period | 2.04% | 20.83% | -18.79% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.67% | 26.18% | -23.51% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.90% | 32.22% | -28.32% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.26% | 32.03% | -26.77% |
VTEB vs. XBI - Expense Ratio Comparison
VTEB has a 0.03% expense ratio, which is lower than XBI's 0.35% expense ratio.
Dividends
VTEB vs. XBI - Dividend Comparison
VTEB's dividend yield for the trailing twelve months is around 3.35%, more than XBI's 0.32% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
XBI SPDR S&P Biotech ETF | 0.32% | 0.37% | 0.15% | 0.02% | 0.00% | 0.04% | 0.20% | 0.00% | 0.28% | 0.24% | 0.26% | 0.61% |
Frequently Asked Questions
VTEB and XBI have a correlation of 0.22, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XBI has higher volatility (10.55%) compared to VTEB (0.92%). In terms of maximum drawdown, VTEB dropped -17.00% vs XBI's -63.89%.
On 10-year performance, XBI leads with 9.98% vs 2.02% for VTEB. On fees, VTEB is cheaper at 0.03% per year. On volatility, VTEB has been the lower-risk option at 0.92%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XBI has performed better with a 9.98% return vs 2.02%. 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 0.35% for XBI.
VTEB has the higher dividend yield at 3.35%, compared with 0.32% for XBI.
VTEB is categorized as Municipal Bonds, while XBI is Health & Biotech Equities. VTEB tracks S&P National AMT-Free Municipal Bond Index, while XBI tracks S&P Biotechnology Select Industry Index. They also come from different issuers: Vanguard and State Street. Their fees differ too: 0.03% for VTEB and 0.35% for XBI.
VTEB currently has the higher Sharpe Ratio (2.52 vs 2.45), 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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