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VTEL vs. BND
Performance
Return for Risk
Drawdowns
Volatility
Dividends

Performance

VTEL vs. BND - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Long-Term Tax-Exempt Bond ETF (VTEL) and Vanguard Total Bond Market ETF (BND). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VTEL achieves a 2.21% return, which is significantly higher than BND's 0.49% return.


VTEL

1D
-0.06%
1M
1.89%
YTD
2.21%
6M
2.51%
1Y
8.49%
3Y*
5Y*
10Y*

BND

1D
0.11%
1M
0.64%
YTD
0.49%
6M
0.57%
1Y
4.23%
3Y*
3.96%
5Y*
0.05%
10Y*
1.56%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VTEL vs. BND - Yearly Performance Comparison


Correlation

The correlation between VTEL and BND is 0.62, 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

0.62

Correlation (All Time)
Calculated using the full available price history since May 22, 2025

0.64

The correlation between VTEL and BND has been stable across timeframes, ranging from 0.62 to 0.64 - a consistent structural relationship.

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Return for Risk

VTEL vs. BND — Risk / Return Rank

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

VTEL
VTEL Risk / Return Rank: 7070
Overall Rank
VTEL Sharpe Ratio Rank: 7575
Sharpe Ratio Rank
VTEL Sortino Ratio Rank: 8282
Sortino Ratio Rank
VTEL Omega Ratio Rank: 8383
Omega Ratio Rank
VTEL Calmar Ratio Rank: 5656
Calmar Ratio Rank
VTEL Martin Ratio Rank: 5656
Martin Ratio Rank

BND
BND Risk / Return Rank: 3232
Overall Rank
BND Sharpe Ratio Rank: 3232
Sharpe Ratio Rank
BND Sortino Ratio Rank: 3333
Sortino Ratio Rank
BND Omega Ratio Rank: 3030
Omega Ratio Rank
BND Calmar Ratio Rank: 3333
Calmar Ratio Rank
BND Martin Ratio Rank: 3232
Martin Ratio Rank
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.

VTEL vs. BND - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Tax-Exempt Bond ETF (VTEL) and Vanguard Total Bond Market ETF (BND). 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.


VTELBNDDifference
Sharpe ratioReturn per unit of total volatility

+1.16

Sortino ratioReturn per unit of downside risk

+1.76

Omega ratioGain probability vs. loss probability

1.48

1.20

+0.28

Calmar ratioReturn relative to maximum drawdown

2.65

1.59

+1.06

Martin ratioReturn relative to average drawdown

9.44

4.52

+4.92

VTEL vs. BND - Sharpe Ratio Comparison

The current VTEL Sharpe Ratio is 2.30, which is higher than the BND Sharpe Ratio of 1.14. The chart below compares the historical Sharpe Ratios of VTEL and BND, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.


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Drawdowns

VTEL vs. BND - Drawdown Comparison

The maximum VTEL drawdown since its inception was -3.22%, smaller than the maximum BND drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for VTEL and BND.


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Drawdown Indicators


VTELBNDDifference

Max Drawdown

Largest peak-to-trough decline

-3.22%

-18.58%

+15.36%

Max Drawdown (1Y)

Largest decline over 1 year

-3.22%

-2.68%

-0.54%

Max Drawdown (3Y)

Largest decline over 3 years

-5.92%

Max Drawdown (5Y)

Largest decline over 5 years

-17.91%

Max Drawdown (10Y)

Largest decline over 10 years

-18.58%

Current Drawdown

Current decline from peak

-0.06%

-2.15%

+2.09%

Average Drawdown

Average peak-to-trough decline

-0.57%

-3.06%

+2.49%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.90%

0.94%

-0.04%

Volatility

VTEL vs. BND - Volatility Comparison

The current volatility for Vanguard Long-Term Tax-Exempt Bond ETF (VTEL) is 0.98%, while Vanguard Total Bond Market ETF (BND) has a volatility of 1.08%. This indicates that VTEL experiences smaller price fluctuations and is considered to be less risky than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.


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Volatility by Period


VTELBNDDifference

Volatility (1M)

Calculated over the trailing 1-month period

0.98%

1.08%

-0.10%

Volatility (6M)

Calculated over the trailing 6-month period

2.67%

2.77%

-0.10%

Volatility (1Y)

Calculated over the trailing 1-year period

3.72%

3.74%

-0.02%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

3.73%

6.03%

-2.30%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

3.73%

5.53%

-1.80%

VTEL vs. BND - Expense Ratio Comparison

VTEL has a 0.09% expense ratio, which is higher than BND's 0.03% 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

VTEL vs. BND - Dividend Comparison

VTEL's dividend yield for the trailing twelve months is around 3.80%, less than BND's 3.96% yield.


PositionTTM20252024202320222021202020192018201720162015
BND
Vanguard Total Bond Market ETF
3.96%3.86%3.67%3.09%2.60%2.12%2.38%2.72%2.81%2.54%2.51%2.57%
VTEL
Vanguard Long-Term Tax-Exempt Bond ETF
3.80%2.23%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Frequently Asked Questions


VTEL and BND have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

BND has higher volatility (1.08%) compared to VTEL (0.98%). In terms of maximum drawdown, VTEL dropped -3.22% vs BND's -18.58%.

On 1-year performance, VTEL leads with 8.49% vs 4.23% for BND. On fees, BND is cheaper at 0.03% per year. On volatility, VTEL has been the lower-risk option at 0.98%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 1-year period, VTEL has performed better with a 8.49% return vs 4.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

BND is cheaper with a 0.03% expense ratio, compared with 0.09% for VTEL.

BND has the higher dividend yield at 3.96%, compared with 3.80% for VTEL.

VTEL is categorized as Municipal Bonds, while BND is Total Bond Market. VTEL tracks S&P 10+ Year National AMT-Free Municipal Bond Index, while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index. Their fees differ too: 0.09% for VTEL and 0.03% for BND.

VTEL currently has the higher Sharpe Ratio (2.30 vs 1.14), 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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