VTEI vs. CALI

Last updated Jun 20, 2026

VTEI (Vanguard Intermediate-Term Tax-Exempt Bond ETF) and CALI (iShares Short-Term California Muni Active ETF) are both Municipal Bonds funds - VTEI tracks the S&P Intermediate Term National AMT-Free Municipal Bond Index while CALI tracks the ICE AMT-Free California Municipal Index. Both are passively managed. Over the past year, VTEI returned 5.98% vs 2.86% for CALI. At a 0.38 correlation, their price movements are largely independent. Both charge a 0.08% expense ratio.

Performance

VTEI vs. CALI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI) and iShares Short-Term California Muni Active ETF (CALI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTEI achieves a 1.34% return, which is significantly higher than CALI's 1.03% return.

VTEI

• 1D: 0.32%
• 1M: 1.32%
• YTD: 1.34%
• 6M: 1.65%
• 1Y: 5.98%
• 3Y*: —
• 5Y*: —
• 10Y*: —

CALI

• 1D: 0.02%
• 1M: 0.35%
• YTD: 1.03%
• 6M: 1.17%
• 1Y: 2.86%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

VTEI vs. CALI - Yearly Performance Comparison

	2026 (YTD)	2025	2024
VTEI Vanguard Intermediate-Term Tax-Exempt Bond ETF	1.34%	4.59%	1.65%
CALI iShares Short-Term California Muni Active ETF	1.03%	3.28%	2.88%

Correlation

The correlation between VTEI and CALI is 0.51, 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	0.51
Correlation (All Time) Calculated using the full available price history since Jan 30, 2024	0.38

The correlation between VTEI and CALI shifts across timeframes, from 0.38 (all time) to 0.51 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

VTEI vs. CALI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VTEI

VTEI Risk / Return Rank: 72
VTEI Sharpe Ratio Rank: 84
VTEI Sortino Ratio Rank: 89
VTEI Omega Ratio Rank: 92
VTEI Calmar Ratio Rank: 49
VTEI Martin Ratio Rank: 47

CALI

CALI Risk / Return Rank: 93
CALI Sharpe Ratio Rank: 96
CALI Sortino Ratio Rank: 97
CALI Omega Ratio Rank: 97
CALI Calmar Ratio Rank: 84
CALI Martin Ratio Rank: 93

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.

VTEI vs. CALI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI) and iShares Short-Term California Muni Active ETF (CALI). 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.

	VTEI	CALI	Difference
Sharpe ratio: Return per unit of total volatility	2.54	3.90	-1.35
Sortino ratio: Return per unit of downside risk	3.85	5.91	-2.05
Omega ratio: Gain probability vs. loss probability	1.59	1.92	-0.33
Calmar ratio: Return relative to maximum drawdown	2.32	4.37	-2.04
Martin ratio: Return relative to average drawdown	7.44	22.29	-14.85

VTEI vs. CALI - Sharpe Ratio Comparison

The current VTEI Sharpe Ratio is 2.54, which is lower than the CALI Sharpe Ratio of 3.90. The chart below compares the historical Sharpe Ratios of VTEI and CALI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VTEI vs. CALI - Drawdown Comparison

The maximum VTEI drawdown since its inception was -3.64%, which is greater than CALI's maximum drawdown of -0.78%. Use the drawdown chart below to compare losses from any high point for VTEI and CALI.

Drawdown Indicators

	VTEI	CALI	Difference
Max Drawdown Largest peak-to-trough decline	-3.64%	-0.78%	-2.86%
Max Drawdown (1Y) Largest decline over 1 year	-2.61%	-0.67%	-1.94%
Current Drawdown Current decline from peak	-0.63%	-0.01%	-0.62%
Average Drawdown Average peak-to-trough decline	-0.78%	-0.08%	-0.70%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.81%	0.13%	+0.68%

Volatility

VTEI vs. CALI - Volatility Comparison

Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI) has a higher volatility of 0.67% compared to iShares Short-Term California Muni Active ETF (CALI) at 0.19%. This indicates that VTEI's price experiences larger fluctuations and is considered to be riskier than CALI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTEI	CALI	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.67%	0.19%	+0.48%
Volatility (6M) Calculated over the trailing 6-month period	1.77%	0.52%	+1.25%
Volatility (1Y) Calculated over the trailing 1-year period	2.39%	0.75%	+1.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.02%	1.10%	+1.92%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.02%	1.10%	+1.92%

VTEI vs. CALI - Expense Ratio Comparison

Both VTEI and CALI have an expense ratio of 0.08%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VTEI vs. CALI - Dividend Comparison

VTEI's dividend yield for the trailing twelve months is around 3.05%, more than CALI's 2.52% yield.

Position	TTM	2025	2024	2023
CALI iShares Short-Term California Muni Active ETF	2.52%	2.62%	3.14%	1.37%
VTEI Vanguard Intermediate-Term Tax-Exempt Bond ETF	3.05%	3.00%	2.65%	0.00%

Frequently Asked Questions

Can I hold both VTEI and CALI in my portfolio?

VTEI and CALI have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTEI or CALI?

VTEI has higher volatility (0.67%) compared to CALI (0.19%). In terms of maximum drawdown, VTEI dropped -3.64% vs CALI's -0.78%.

Which ETF is better, VTEI or CALI?

On 1-year performance, VTEI leads with 5.98% vs 2.86% for CALI. Both ETFs have the same 0.08% expense ratio. On volatility, CALI has been the lower-risk option at 0.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VTEI or CALI?

Over the 1-year period, VTEI has performed better with a 5.98% return vs 2.86%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTEI or CALI?

VTEI and CALI have the same expense ratio: 0.08% per year.

Which ETF pays a higher dividend yield, VTEI or CALI?

VTEI has the higher dividend yield at 3.05%, compared with 2.52% for CALI.

What is the main difference between VTEI and CALI?

VTEI tracks S&P Intermediate Term National AMT-Free Municipal Bond Index, while CALI tracks ICE AMT-Free California Municipal Index. They also come from different issuers: Vanguard and iShares.

Which has better risk-adjusted returns?

CALI currently has the higher Sharpe Ratio (3.90 vs 2.54), 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.