VTEI vs. FUMB

Last updated Jun 5, 2026

VTEI (Vanguard Intermediate-Term Tax-Exempt Bond ETF) and FUMB (First Trust Ultra Short Duration Municipal ETF) are both Municipal Bonds funds. VTEI is passively managed, while FUMB is actively managed. Over the past year, VTEI returned 6.21% vs 2.63% for FUMB. At a 0.25 correlation, their price movements are largely independent. VTEI charges 0.08%/yr vs 0.45%/yr for FUMB.

Performance

VTEI vs. FUMB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI) and First Trust Ultra Short Duration Municipal ETF (FUMB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with VTEI having a 1.21% return and FUMB slightly lower at 1.15%.

VTEI

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

FUMB

• 1D: 0.07%
• 1M: 0.27%
• YTD: 1.15%
• 6M: 1.33%
• 1Y: 2.63%
• 3Y*: 3.00%
• 5Y*: 1.98%
• 10Y*: —

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

VTEI vs. FUMB - Yearly Performance Comparison

	2026 (YTD)	2025	2024
VTEI Vanguard Intermediate-Term Tax-Exempt Bond ETF	1.21%	4.59%	1.55%
FUMB First Trust Ultra Short Duration Municipal ETF	1.15%	2.78%	2.74%

Correlation

The correlation between VTEI and FUMB is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.23
Correlation (All Time) Calculated using the full available price history since Jan 31, 2024	0.25

Return for Risk

VTEI vs. FUMB — 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

FUMB

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

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. FUMB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI) and First Trust Ultra Short Duration Municipal ETF (FUMB). 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	FUMB	Difference
Sharpe ratio: Return per unit of total volatility	2.63	3.46	-0.83
Sortino ratio: Return per unit of downside risk	3.99	5.50	-1.51
Omega ratio: Gain probability vs. loss probability	1.62	1.78	-0.17
Calmar ratio: Return relative to maximum drawdown	2.39	12.05	-9.66
Martin ratio: Return relative to average drawdown	7.83	45.71	-37.87
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. FUMB - Sharpe Ratio Comparison

The current VTEI Sharpe Ratio is 2.63, which is comparable to the FUMB Sharpe Ratio of 3.46. The chart below compares the historical Sharpe Ratios of VTEI and FUMB, 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	FUMB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.63	3.46	-0.83
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	1.71	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.04	1.01	+0.03

Drawdowns

VTEI vs. FUMB - Drawdown Comparison

The maximum VTEI drawdown since its inception was -3.64%, which is greater than FUMB's maximum drawdown of -2.68%. Use the drawdown chart below to compare losses from any high point for VTEI and FUMB.

Drawdown Indicators

	VTEI	FUMB	Difference
Max Drawdown Largest peak-to-trough decline	-3.64%	-2.68%	-0.96%
Max Drawdown (1Y) Largest decline over 1 year	-2.61%	-0.22%	-2.39%
Max Drawdown (3Y) Largest decline over 3 years	—	-0.60%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-1.25%	—
Current Drawdown Current decline from peak	-0.76%	0.00%	-0.76%
Average Drawdown Average peak-to-trough decline	-0.78%	-0.19%	-0.59%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.79%	0.06%	+0.73%

Volatility

VTEI vs. FUMB - Volatility Comparison

Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI) has a higher volatility of 0.78% compared to First Trust Ultra Short Duration Municipal ETF (FUMB) at 0.20%. This indicates that VTEI's price experiences larger fluctuations and is considered to be riskier than FUMB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTEI	FUMB	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.78%	0.20%	+0.58%
Volatility (6M) Calculated over the trailing 6-month period	1.71%	0.54%	+1.17%
Volatility (1Y) Calculated over the trailing 1-year period	2.37%	0.76%	+1.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.04%	1.16%	+1.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.04%	1.77%	+1.27%

VTEI vs. FUMB - Expense Ratio Comparison

VTEI has a 0.08% expense ratio, which is lower than FUMB's 0.45% expense ratio.

Dividends

VTEI vs. FUMB - Dividend Comparison

VTEI's dividend yield for the trailing twelve months is around 3.05%, more than FUMB's 2.80% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
FUMB First Trust Ultra Short Duration Municipal ETF	2.80%	2.90%	2.86%	2.24%	1.02%	0.43%	0.94%	1.74%	0.15%
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 FUMB in my portfolio?

VTEI and FUMB have a correlation of 0.23, 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 FUMB?

VTEI has higher volatility (0.78%) compared to FUMB (0.20%). In terms of maximum drawdown, VTEI dropped -3.64% vs FUMB's -2.68%.

Which ETF is better, VTEI or FUMB?

On 1-year performance, VTEI leads with 6.21% vs 2.63% for FUMB. On fees, VTEI is cheaper at 0.08% per year. On volatility, FUMB has been the lower-risk option at 0.20%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VTEI or FUMB?

Over the 1-year period, VTEI has performed better with a 6.21% return vs 2.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTEI or FUMB?

VTEI is cheaper with a 0.08% expense ratio, compared with 0.45% for FUMB.

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

VTEI has the higher dividend yield at 3.05%, compared with 2.80% for FUMB.

What is the main difference between VTEI and FUMB?

They also come from different issuers: Vanguard and First Trust. Their fees differ too: 0.08% for VTEI and 0.45% for FUMB.

Which has better risk-adjusted returns?

FUMB currently has the higher Sharpe Ratio (3.46 vs 2.63), 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.