VTEC vs. VTEB
VTEC (Vanguard California Tax-Exempt Bond ETF) and VTEB (Vanguard Tax-Exempt Bond ETF) are both Municipal Bonds funds from Vanguard — VTEC tracks the S&P California AMT-Free Municipal Bond Index while VTEB tracks the S&P National AMT-Free Municipal Bond Index. Both are passively managed. Over the past year, VTEC returned 6.41% vs 6.97% for VTEB. Their correlation of 0.81 suggests significant overlap in exposure. VTEC charges 0.08%/yr vs 0.05%/yr for VTEB.
Performance
VTEC vs. VTEB - Performance Comparison
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Returns By Period
In the year-to-date period, VTEC achieves a 0.56% return, which is significantly lower than VTEB's 0.80% return.
VTEC
- 1D
- 0.05%
- 1M
- 0.15%
- YTD
- 0.56%
- 6M
- 1.71%
- 1Y
- 6.41%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
VTEB
- 1D
- -0.16%
- 1M
- 0.05%
- YTD
- 0.80%
- 6M
- 1.53%
- 1Y
- 6.97%
- 3Y*
- 2.85%
- 5Y*
- 0.84%
- 10Y*
- 2.10%
VTEC vs. VTEB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
VTEC Vanguard California Tax-Exempt Bond ETF | 0.56% | 3.98% | 1.42% |
VTEB Vanguard Tax-Exempt Bond ETF | 0.80% | 3.72% | 1.89% |
Correlation
The correlation between VTEC and VTEB is 0.79, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.79 |
Correlation (All Time) Calculated using the full available price history since Jan 31, 2024 | 0.81 |
The correlation between VTEC and VTEB has been stable across timeframes, ranging from 0.79 to 0.81 — a consistent structural relationship.
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Return for Risk
VTEC vs. VTEB — Risk / Return Rank
VTEC
VTEB
VTEC vs. VTEB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard California Tax-Exempt Bond ETF (VTEC) and Vanguard Tax-Exempt Bond ETF (VTEB). 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.
| VTEC | VTEB | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 2.15 | 2.42 | -0.28 |
Sortino ratioReturn per unit of downside risk | 3.09 | 3.55 | -0.46 |
Omega ratioGain probability vs. loss probability | 1.45 | 1.51 | -0.06 |
Calmar ratioReturn relative to maximum drawdown | 2.32 | 2.96 | -0.63 |
Martin ratioReturn relative to average drawdown | 9.73 | 12.27 | -2.53 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VTEC | VTEB | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.15 | 2.42 | -0.28 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | — | 0.22 | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.40 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.71 | 0.47 | +0.25 |
Drawdowns
VTEC vs. VTEB - Drawdown Comparison
The maximum VTEC drawdown since its inception was -4.50%, smaller than the maximum VTEB drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for VTEC and VTEB.
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Drawdown Indicators
| VTEC | VTEB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -4.50% | -17.00% | +12.50% |
Max Drawdown (1Y)Largest decline over 1 year | -2.85% | -2.71% | -0.14% |
Max Drawdown (5Y)Largest decline over 5 years | — | -12.64% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -17.00% | — |
Current DrawdownCurrent decline from peak | -1.23% | -1.17% | -0.06% |
Average DrawdownAverage peak-to-trough decline | -1.11% | -2.34% | +1.23% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.68% | 0.65% | +0.03% |
Volatility
VTEC vs. VTEB - Volatility Comparison
The current volatility for Vanguard California Tax-Exempt Bond ETF (VTEC) is 1.28%, while Vanguard Tax-Exempt Bond ETF (VTEB) has a volatility of 1.38%. This indicates that VTEC experiences smaller price fluctuations and is considered to be less risky than VTEB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTEC | VTEB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.28% | 1.38% | -0.10% |
Volatility (6M)Calculated over the trailing 6-month period | 1.78% | 1.90% | -0.12% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.24% | 2.91% | +0.33% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.82% | 3.88% | -0.06% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.82% | 5.26% | -1.44% |
VTEC vs. VTEB - Expense Ratio Comparison
VTEC has a 0.08% expense ratio, which is higher than VTEB's 0.05% 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
VTEC vs. VTEB - Dividend Comparison
VTEC's dividend yield for the trailing twelve months is around 3.16%, less than VTEB's 3.34% yield.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VTEC Vanguard California Tax-Exempt Bond ETF | 3.16% | 3.13% | 2.54% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VTEB Vanguard Tax-Exempt Bond ETF | 3.34% | 3.29% | 3.14% | 2.79% | 2.09% | 1.64% | 1.99% | 2.30% | 2.25% | 1.96% | 1.66% | 0.58% |