VTEI vs. VTES
VTEI (Vanguard Intermediate-Term Tax-Exempt Bond ETF) and VTES (Vanguard Short-Term Tax-Exempt Bond ETF) are both Municipal Bonds funds from Vanguard - VTEI tracks the S&P Intermediate Term National AMT-Free Municipal Bond Index while VTES tracks the S&P 0-7 Year National AMT-Free Municipal Bond Index. Both are passively managed. Over the past year, VTEI returned 3.93% vs 1.98% for VTES. Their 0.73 correlation means they have sometimes moved together and sometimes differently. VTEI charges 0.08%/yr vs 0.07%/yr for VTES.
Performance
VTEI vs. VTES - Performance Comparison
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Returns By Period
In the year-to-date period, VTEI achieves a 0.30% return, which is significantly lower than VTES's 0.68% return.
VTEI
- 1D
- 0.15%
- 1M
- -1.26%
- 6M
- -0.82%
- YTD
- 0.30%
- 1Y
- 3.93%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- 2.58%
VTES
- 1D
- 0.08%
- 1M
- -0.30%
- 6M
- -0.15%
- YTD
- 0.68%
- 1Y
- 1.98%
- 3Y*
- 3.12%
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- 2.94%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $8.14M | $9.12M | $9.98M | |
| $19.72M | $19.48M | $17.64M |
VTEI vs. VTES - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
VTEI Vanguard Intermediate-Term Tax-Exempt Bond ETF | 0.30% | 4.59% | 1.65% |
VTES Vanguard Short-Term Tax-Exempt Bond ETF | 0.68% | 4.19% | 2.19% |
Correlation
The correlation between VTEI and VTES is 0.75, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.75 |
Correlation (All Time) Calculated using the full available price history since Jan 30, 2024 | 0.73 |
The correlation between VTEI and VTES has been stable across timeframes, ranging from 0.73 to 0.75 - a consistent structural relationship.
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Return for Risk
VTEI vs. VTES — Risk / Return Rank
VTEI
VTES
VTEI vs. VTES - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI) and Vanguard Short-Term Tax-Exempt Bond ETF (VTES). 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 | VTES | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.12 | ||
| Sortino ratioReturn per unit of downside risk | +0.22 | ||
| Omega ratioGain probability vs. loss probability | 1.35 | 1.32 | +0.03 |
| Calmar ratioReturn relative to maximum drawdown | 1.52 | 1.36 | +0.16 |
| Martin ratioReturn relative to average drawdown | 4.24 | 3.57 | +0.67 |
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Drawdowns
VTEI vs. VTES - Drawdown Comparison
The maximum VTEI drawdown since its inception was -3.64%, which is greater than VTES's maximum drawdown of -2.42%. Use the drawdown chart below to compare losses from any high point for VTEI and VTES.
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Drawdown Indicators
| VTEI | VTES | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -3.64% | -2.42% | -1.22% |
Max Drawdown (1Y)Largest decline over 1 year | -2.61% | -1.47% | -1.14% |
Max Drawdown (3Y)Largest decline over 3 years | — | -1.59% | — |
Current DrawdownCurrent decline from peak | -1.66% | -0.59% | -1.07% |
Average DrawdownAverage peak-to-trough decline | -0.80% | -0.50% | -0.30% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.93% | 0.56% | +0.37% |
Volatility
VTEI vs. VTES - Volatility Comparison
Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI) has a higher volatility of 0.83% compared to Vanguard Short-Term Tax-Exempt Bond ETF (VTES) at 0.49%. This indicates that VTEI's price experiences larger fluctuations and is considered to be riskier than VTES based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTEI | VTES | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.83% | 0.49% | +0.34% |
Volatility (6M)Calculated over the trailing 6-month period | 1.94% | 1.05% | +0.89% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.34% | 1.27% | +1.07% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 3.00% | 1.70% | +1.30% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.00% | 1.70% | +1.30% |
VTEI vs. VTES - Expense Ratio Comparison
VTEI has a 0.08% expense ratio, which is higher than VTES's 0.07% 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
VTEI vs. VTES - Dividend Comparison
VTEI's dividend yield for the trailing twelve months is around 3.10%, more than VTES's 2.74% yield.
| Position | TTM | 2025 | 2024 | 2023 |
|---|---|---|---|---|
VTEI Vanguard Intermediate-Term Tax-Exempt Bond ETF | 3.10% | 3.00% | 2.65% | 0.00% |
VTES Vanguard Short-Term Tax-Exempt Bond ETF | 2.74% | 2.77% | 2.99% | 2.03% |
Frequently Asked Questions
VTEI and VTES have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTEI has higher volatility (0.83%) compared to VTES (0.49%). In terms of maximum drawdown, VTEI dropped -3.64% vs VTES's -2.42%.
On 1-year performance, VTEI leads with 3.93% vs 1.98% for VTES. On fees, VTES is cheaper at 0.07% per year. On volatility, VTES has been the lower-risk option at 0.49%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, VTEI has performed better with a 3.93% return vs 1.98%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTES is cheaper with a 0.07% expense ratio, compared with 0.08% for VTEI.
VTEI has the higher dividend yield at 3.10%, compared with 2.74% for VTES.
VTEI tracks S&P Intermediate Term National AMT-Free Municipal Bond Index, while VTES tracks S&P 0-7 Year National AMT-Free Municipal Bond Index. Their fees differ too: 0.08% for VTEI and 0.07% for VTES.
VTEI currently has the higher Sharpe Ratio (1.69 vs 1.56), 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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