VTEL vs. TAXX

Last updated Jun 25, 2026

VTEL (Vanguard Long-Term Tax-Exempt Bond ETF) and TAXX (Bondbloxx IR+M Tax-Aware Short Duration ETF) are both Municipal Bonds funds. VTEL is passively managed, while TAXX is actively managed. Over the past year, VTEL returned 8.43% vs 3.71% for TAXX. At a 0.37 correlation, their price movements are largely independent. VTEL charges 0.09%/yr vs 0.35%/yr for TAXX.

Performance

VTEL vs. TAXX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Long-Term Tax-Exempt Bond ETF (VTEL) and Bondbloxx IR+M Tax-Aware Short Duration ETF (TAXX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTEL achieves a 2.36% return, which is significantly higher than TAXX's 1.38% return.

VTEL

• 1D: 0.22%
• 1M: 2.05%
• YTD: 2.36%
• 6M: 2.43%
• 1Y: 8.43%
• 3Y*: —
• 5Y*: —
• 10Y*: —

TAXX

• 1D: 0.15%
• 1M: 0.65%
• YTD: 1.38%
• 6M: 1.62%
• 1Y: 3.71%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VTEL vs. TAXX - Yearly Performance Comparison

	2026 (YTD)	2025
VTEL Vanguard Long-Term Tax-Exempt Bond ETF	2.36%	6.61%
TAXX Bondbloxx IR+M Tax-Aware Short Duration ETF	1.38%	3.14%

Correlation

The correlation between VTEL and TAXX is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.39
Correlation (All Time) Calculated using the full available price history since May 22, 2025	0.37

Return for Risk

VTEL vs. TAXX — Risk / Return Rank

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

VTEL

VTEL Risk / Return Rank: 75
VTEL Sharpe Ratio Rank: 81
VTEL Sortino Ratio Rank: 87
VTEL Omega Ratio Rank: 88
VTEL Calmar Ratio Rank: 60
VTEL Martin Ratio Rank: 60

TAXX

TAXX Risk / Return Rank: 83
TAXX Sharpe Ratio Rank: 78
TAXX Sortino Ratio Rank: 82
TAXX Omega Ratio Rank: 92
TAXX Calmar Ratio Rank: 85
TAXX Martin Ratio Rank: 76

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. TAXX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Tax-Exempt Bond ETF (VTEL) and Bondbloxx IR+M Tax-Aware Short Duration ETF (TAXX). 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.

	VTEL	TAXX	Difference
Sharpe ratio: Return per unit of total volatility	2.28	2.19	+0.09
Sortino ratio: Return per unit of downside risk	3.44	3.24	+0.19
Omega ratio: Gain probability vs. loss probability	1.47	1.55	-0.07
Calmar ratio: Return relative to maximum drawdown	2.63	4.22	-1.59
Martin ratio: Return relative to average drawdown	9.37	12.81	-3.44

VTEL vs. TAXX - Sharpe Ratio Comparison

The current VTEL Sharpe Ratio is 2.28, which is comparable to the TAXX Sharpe Ratio of 2.19. The chart below compares the historical Sharpe Ratios of VTEL and TAXX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VTEL vs. TAXX - Drawdown Comparison

The maximum VTEL drawdown since its inception was -3.22%, which is greater than TAXX's maximum drawdown of -0.91%. Use the drawdown chart below to compare losses from any high point for VTEL and TAXX.

Drawdown Indicators

	VTEL	TAXX	Difference
Max Drawdown Largest peak-to-trough decline	-3.22%	-0.91%	-2.31%
Max Drawdown (1Y) Largest decline over 1 year	-3.22%	-0.88%	-2.34%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-0.57%	-0.16%	-0.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.90%	0.29%	+0.61%

Volatility

VTEL vs. TAXX - Volatility Comparison

Vanguard Long-Term Tax-Exempt Bond ETF (VTEL) has a higher volatility of 0.98% compared to Bondbloxx IR+M Tax-Aware Short Duration ETF (TAXX) at 0.33%. This indicates that VTEL's price experiences larger fluctuations and is considered to be riskier than TAXX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTEL	TAXX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.98%	0.33%	+0.65%
Volatility (6M) Calculated over the trailing 6-month period	2.68%	0.83%	+1.85%
Volatility (1Y) Calculated over the trailing 1-year period	3.72%	1.70%	+2.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.73%	1.59%	+2.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.73%	1.59%	+2.14%

VTEL vs. TAXX - Expense Ratio Comparison

VTEL has a 0.09% expense ratio, which is lower than TAXX's 0.35% expense ratio.

Dividends

VTEL vs. TAXX - Dividend Comparison

VTEL's dividend yield for the trailing twelve months is around 3.79%, more than TAXX's 3.49% yield.

Position	TTM	2025	2024
TAXX Bondbloxx IR+M Tax-Aware Short Duration ETF	3.49%	3.72%	2.70%
VTEL Vanguard Long-Term Tax-Exempt Bond ETF	3.79%	2.23%	0.00%

Frequently Asked Questions

Can I hold both VTEL and TAXX in my portfolio?

VTEL and TAXX have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTEL or TAXX?

VTEL has higher volatility (0.98%) compared to TAXX (0.33%). In terms of maximum drawdown, VTEL dropped -3.22% vs TAXX's -0.91%.

Which ETF is better, VTEL or TAXX?

On 1-year performance, VTEL leads with 8.43% vs 3.71% for TAXX. On fees, VTEL is cheaper at 0.09% per year. On volatility, TAXX has been the lower-risk option at 0.33%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VTEL or TAXX?

Over the 1-year period, VTEL has performed better with a 8.43% return vs 3.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTEL or TAXX?

VTEL is cheaper with a 0.09% expense ratio, compared with 0.35% for TAXX.

Which ETF pays a higher dividend yield, VTEL or TAXX?

VTEL has the higher dividend yield at 3.79%, compared with 3.49% for TAXX.

What is the main difference between VTEL and TAXX?

They also come from different issuers: Vanguard and BondBloxx. Their fees differ too: 0.09% for VTEL and 0.35% for TAXX.

Which has better risk-adjusted returns?

VTEL currently has the higher Sharpe Ratio (2.28 vs 2.19), 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.