VTEI vs. DBO

Last updated Jun 5, 2026

VTEI (Vanguard Intermediate-Term Tax-Exempt Bond ETF) and DBO (Invesco DB Oil Fund) are both exchange-traded funds - VTEI is a Municipal Bonds fund tracking the S&P Intermediate Term National AMT-Free Municipal Bond Index, while DBO is a Oil & Gas fund tracking the DBIQ Optimum Yield Crude Oil Index Excess Return. Both are passively managed. Over the past year, VTEI returned 6.21% vs 77.38% for DBO. At a correlation of -0.19, they often move in opposite directions. VTEI charges 0.08%/yr vs 0.78%/yr for DBO.

Performance

VTEI vs. DBO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI) and Invesco DB Oil Fund (DBO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTEI achieves a 1.21% return, which is significantly lower than DBO's 79.84% return.

VTEI

• 1D: 0.09%
• 1M: 0.59%
• YTD: 1.21%
• 6M: 1.65%
• 1Y: 6.21%
• 3Y*: —
• 5Y*: —
• 10Y*: —

DBO

• 1D: -2.66%
• 1M: -3.39%
• YTD: 79.84%
• 6M: 74.51%
• 1Y: 77.38%
• 3Y*: 20.83%
• 5Y*: 15.36%
• 10Y*: 10.89%

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

VTEI vs. DBO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
VTEI Vanguard Intermediate-Term Tax-Exempt Bond ETF	1.21%	4.59%	1.55%
DBO Invesco DB Oil Fund	79.84%	-11.71%	1.30%

Correlation

The correlation between VTEI and DBO is -0.31, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.31
Correlation (All Time) Calculated using the full available price history since Jan 31, 2024	-0.19

The correlation between VTEI and DBO shifts across timeframes, from -0.31 (1 year) to -0.19 (all time), reflecting how their relationship changes across market environments.

Return for Risk

VTEI vs. DBO — 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: 82
VTEI Sortino Ratio Rank: 88
VTEI Omega Ratio Rank: 92
VTEI Calmar Ratio Rank: 49
VTEI Martin Ratio Rank: 48

DBO

DBO Risk / Return Rank: 65
DBO Sharpe Ratio Rank: 70
DBO Sortino Ratio Rank: 62
DBO Omega Ratio Rank: 61
DBO Calmar Ratio Rank: 82
DBO Martin Ratio Rank: 52

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. DBO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI) and Invesco DB Oil Fund (DBO). 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.

	VTEI	DBO	Difference
Sharpe ratio: Return per unit of total volatility	2.63	2.25	+0.38
Sortino ratio: Return per unit of downside risk	3.99	2.85	+1.14
Omega ratio: Gain probability vs. loss probability	1.62	1.36	+0.25
Calmar ratio: Return relative to maximum drawdown	2.39	4.28	-1.88
Martin ratio: Return relative to average drawdown	7.83	8.69	-0.85
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VTEI vs. DBO - Sharpe Ratio Comparison

The current VTEI Sharpe Ratio is 2.63, which is comparable to the DBO Sharpe Ratio of 2.25. The chart below compares the historical Sharpe Ratios of VTEI and DBO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VTEI	DBO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.63	2.25	+0.38
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.48	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.34	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.04	0.02	+1.02

Drawdowns

VTEI vs. DBO - Drawdown Comparison

The maximum VTEI drawdown since its inception was -3.64%, smaller than the maximum DBO drawdown of -90.18%. Use the drawdown chart below to compare losses from any high point for VTEI and DBO.

Drawdown Indicators

	VTEI	DBO	Difference
Max Drawdown Largest peak-to-trough decline	-3.64%	-90.18%	+86.54%
Max Drawdown (1Y) Largest decline over 1 year	-2.61%	-18.19%	+15.58%
Max Drawdown (3Y) Largest decline over 3 years	—	-28.20%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-37.68%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-61.69%	—
Current Drawdown Current decline from peak	-0.76%	-52.68%	+51.92%
Average Drawdown Average peak-to-trough decline	-0.78%	-62.25%	+61.47%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.79%	8.94%	-8.15%

Volatility

VTEI vs. DBO - Volatility Comparison

The current volatility for Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI) is 0.78%, while Invesco DB Oil Fund (DBO) has a volatility of 12.79%. This indicates that VTEI experiences smaller price fluctuations and is considered to be less risky than DBO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTEI	DBO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.78%	12.79%	-12.01%
Volatility (6M) Calculated over the trailing 6-month period	1.71%	28.32%	-26.61%
Volatility (1Y) Calculated over the trailing 1-year period	2.37%	34.58%	-32.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.04%	32.31%	-29.27%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.04%	31.79%	-28.75%

VTEI vs. DBO - Expense Ratio Comparison

VTEI has a 0.08% expense ratio, which is lower than DBO's 0.78% expense ratio.

Dividends

VTEI vs. DBO - Dividend Comparison

VTEI's dividend yield for the trailing twelve months is around 3.05%, more than DBO's 1.95% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
DBO Invesco DB Oil Fund	1.95%	3.51%	4.68%	4.59%	0.66%	0.00%	0.00%	1.63%	1.58%
VTEI Vanguard Intermediate-Term Tax-Exempt Bond ETF	3.05%	3.00%	2.65%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VTEI and DBO in my portfolio?

VTEI and DBO have a correlation of -0.31, 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 DBO?

DBO has higher volatility (12.79%) compared to VTEI (0.78%). In terms of maximum drawdown, VTEI dropped -3.64% vs DBO's -90.18%.

Which ETF is better, VTEI or DBO?

On 1-year performance, DBO leads with 77.38% vs 6.21% for VTEI. On fees, VTEI is cheaper at 0.08% per year. On volatility, VTEI has been the lower-risk option at 0.78%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VTEI or DBO?

Over the 1-year period, DBO has performed better with a 77.38% return vs 6.21%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTEI or DBO?

VTEI is cheaper with a 0.08% expense ratio, compared with 0.78% for DBO.

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

VTEI has the higher dividend yield at 3.05%, compared with 1.95% for DBO.

What is the main difference between VTEI and DBO?

VTEI is categorized as Municipal Bonds, while DBO is Oil & Gas. VTEI tracks S&P Intermediate Term National AMT-Free Municipal Bond Index, while DBO tracks DBIQ Optimum Yield Crude Oil Index Excess Return. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.08% for VTEI and 0.78% for DBO.

Which has better risk-adjusted returns?

VTEI currently has the higher Sharpe Ratio (2.63 vs 2.25), 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.