VTEI vs. VWIUX

Last updated Jun 5, 2026

VTEI (Vanguard Intermediate-Term Tax-Exempt Bond ETF) and VWIUX (Vanguard Intermediate-Term Tax-Exempt Fund Admiral Shares) are both Municipal Bonds funds from Vanguard. Over the past year, VTEI returned 6.21% vs 6.74% for VWIUX. A 0.72 correlation means they provide meaningful diversification when combined. VTEI charges 0.08%/yr vs 0.09%/yr for VWIUX.

Performance

VTEI vs. VWIUX - Performance Comparison

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

Returns By Period

The year-to-date returns for both investments are quite close, with VTEI having a 1.21% return and VWIUX slightly higher at 1.26%.

VTEI

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

VWIUX

• 1D: -0.07%
• 1M: 0.50%
• YTD: 1.26%
• 6M: 1.76%
• 1Y: 6.74%
• 3Y*: 4.53%
• 5Y*: 1.69%
• 10Y*: 2.47%

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

VTEI vs. VWIUX - Yearly Performance Comparison

	2026 (YTD)	2025	2024
VTEI Vanguard Intermediate-Term Tax-Exempt Bond ETF	1.21%	4.59%	1.55%
VWIUX Vanguard Intermediate-Term Tax-Exempt Fund Admiral Shares	1.26%	5.99%	3.01%

Correlation

The correlation between VTEI and VWIUX is 0.70, 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	0.70
Correlation (All Time) Calculated using the full available price history since Jan 31, 2024	0.72

The correlation between VTEI and VWIUX has been stable across timeframes, ranging from 0.70 to 0.72 - a consistent structural relationship.

Return for Risk

VTEI vs. VWIUX — 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

VWIUX

VWIUX Risk / Return Rank: 70
VWIUX Sharpe Ratio Rank: 89
VWIUX Sortino Ratio Rank: 93
VWIUX Omega Ratio Rank: 95
VWIUX Calmar Ratio Rank: 37
VWIUX Martin Ratio Rank: 35

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. VWIUX - 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 Intermediate-Term Tax-Exempt Fund Admiral Shares (VWIUX). 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	VWIUX	Difference
Sharpe ratio: Return per unit of total volatility	2.63	2.95	-0.32
Sortino ratio: Return per unit of downside risk	3.99	4.73	-0.74
Omega ratio: Gain probability vs. loss probability	1.62	1.79	-0.18
Calmar ratio: Return relative to maximum drawdown	2.39	2.32	+0.08
Martin ratio: Return relative to average drawdown	7.83	7.71	+0.12
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. VWIUX - Sharpe Ratio Comparison

The current VTEI Sharpe Ratio is 2.63, which is comparable to the VWIUX Sharpe Ratio of 2.95. The chart below compares the historical Sharpe Ratios of VTEI and VWIUX, 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	VWIUX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.63	2.95	-0.32
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.52	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.72	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.04	1.13	-0.09

Drawdowns

VTEI vs. VWIUX - Drawdown Comparison

The maximum VTEI drawdown since its inception was -3.64%, smaller than the maximum VWIUX drawdown of -11.38%. Use the drawdown chart below to compare losses from any high point for VTEI and VWIUX.

Drawdown Indicators

	VTEI	VWIUX	Difference
Max Drawdown Largest peak-to-trough decline	-3.64%	-11.38%	+7.74%
Max Drawdown (1Y) Largest decline over 1 year	-2.61%	-2.99%	+0.38%
Max Drawdown (3Y) Largest decline over 3 years	—	-4.40%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-11.38%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-11.38%	—
Current Drawdown Current decline from peak	-0.76%	-0.95%	+0.19%
Average Drawdown Average peak-to-trough decline	-0.78%	-1.44%	+0.66%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.79%	0.90%	-0.11%

Volatility

VTEI vs. VWIUX - Volatility Comparison

The current volatility for Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI) is 0.78%, while Vanguard Intermediate-Term Tax-Exempt Fund Admiral Shares (VWIUX) has a volatility of 0.88%. This indicates that VTEI experiences smaller price fluctuations and is considered to be less risky than VWIUX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTEI	VWIUX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.78%	0.88%	-0.10%
Volatility (6M) Calculated over the trailing 6-month period	1.71%	1.86%	-0.15%
Volatility (1Y) Calculated over the trailing 1-year period	2.37%	2.35%	+0.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.04%	3.27%	-0.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.04%	3.43%	-0.39%

VTEI vs. VWIUX - Expense Ratio Comparison

VTEI has a 0.08% expense ratio, which is lower than VWIUX's 0.09% expense ratio. Despite the difference, 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. VWIUX - Dividend Comparison

VTEI's dividend yield for the trailing twelve months is around 3.05%, less than VWIUX's 3.33% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%	0.00%	0.00%	0.00%
VWIUX Vanguard Intermediate-Term Tax-Exempt Fund Admiral Shares	3.33%	4.06%	3.63%	2.78%	2.51%	1.89%	2.40%	2.88%	2.89%	2.82%	2.91%	2.96%

Frequently Asked Questions

Can I hold both VTEI and VWIUX in my portfolio?

VTEI and VWIUX have a correlation of 0.70, 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 VWIUX?

VWIUX has higher volatility (0.88%) compared to VTEI (0.78%). In terms of maximum drawdown, VTEI dropped -3.64% vs VWIUX's -11.38%.

Which has better risk-adjusted returns?

VWIUX currently has the higher Sharpe Ratio (2.95 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.