VTEL vs. VGT

Last updated Jun 23, 2026

VTEL (Vanguard Long-Term Tax-Exempt Bond ETF) and VGT (Vanguard Information Technology ETF) are both exchange-traded funds - VTEL is a Municipal Bonds fund tracking the S&P 10+ Year National AMT-Free Municipal Bond Index, while VGT is a Technology Equities fund tracking the MSCI USA IMI Information Technology 25/50 Index. Both are passively managed. Over the past year, VTEL returned 8.49% vs 46.82% for VGT. At a 0.15 correlation, their price movements are largely independent. Both charge a 0.09% expense ratio.

Performance

VTEL vs. VGT - 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 Information Technology ETF (VGT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTEL achieves a 2.21% return, which is significantly lower than VGT's 23.32% return.

VTEL

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

VGT

• 1D: -3.68%
• 1M: 0.28%
• YTD: 23.32%
• 6M: 21.50%
• 1Y: 46.82%
• 3Y*: 30.13%
• 5Y*: 19.51%
• 10Y*: 25.49%

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

VTEL vs. VGT - Yearly Performance Comparison

	2026 (YTD)	2025
VTEL Vanguard Long-Term Tax-Exempt Bond ETF	2.21%	6.61%
VGT Vanguard Information Technology ETF	23.32%	25.79%

Correlation

The correlation between VTEL and VGT is 0.16, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.16
Correlation (All Time) Calculated using the full available price history since May 22, 2025	0.15

Return for Risk

VTEL vs. VGT — Risk / Return Rank

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

VTEL

VTEL Risk / Return Rank: 70
VTEL Sharpe Ratio Rank: 75
VTEL Sortino Ratio Rank: 82
VTEL Omega Ratio Rank: 83
VTEL Calmar Ratio Rank: 56
VTEL Martin Ratio Rank: 56

VGT

VGT Risk / Return Rank: 58
VGT Sharpe Ratio Rank: 65
VGT Sortino Ratio Rank: 56
VGT Omega Ratio Rank: 58
VGT Calmar Ratio Rank: 60
VGT Martin Ratio Rank: 52

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. VGT - 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 Information Technology ETF (VGT). 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	VGT	Difference
Sharpe ratio: Return per unit of total volatility	2.30	2.07	+0.22
Sortino ratio: Return per unit of downside risk	3.46	2.61	+0.85
Omega ratio: Gain probability vs. loss probability	1.48	1.35	+0.13
Calmar ratio: Return relative to maximum drawdown	2.65	2.87	-0.22
Martin ratio: Return relative to average drawdown	9.44	8.76	+0.67

VTEL vs. VGT - Sharpe Ratio Comparison

The current VTEL Sharpe Ratio is 2.30, which is comparable to the VGT Sharpe Ratio of 2.07. The chart below compares the historical Sharpe Ratios of VTEL and VGT, 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. VGT - Drawdown Comparison

The maximum VTEL drawdown since its inception was -3.22%, smaller than the maximum VGT drawdown of -54.63%. Use the drawdown chart below to compare losses from any high point for VTEL and VGT.

Drawdown Indicators

	VTEL	VGT	Difference
Max Drawdown Largest peak-to-trough decline	-3.22%	-54.63%	+51.41%
Max Drawdown (1Y) Largest decline over 1 year	-3.22%	-16.40%	+13.18%
Max Drawdown (3Y) Largest decline over 3 years	—	-27.23%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-35.07%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-35.07%	—
Current Drawdown Current decline from peak	-0.06%	-7.71%	+7.65%
Average Drawdown Average peak-to-trough decline	-0.57%	-7.95%	+7.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.90%	5.36%	-4.46%

Volatility

VTEL vs. VGT - Volatility Comparison

The current volatility for Vanguard Long-Term Tax-Exempt Bond ETF (VTEL) is 0.98%, while Vanguard Information Technology ETF (VGT) has a volatility of 11.39%. This indicates that VTEL experiences smaller price fluctuations and is considered to be less risky than VGT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTEL	VGT	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.98%	11.39%	-10.41%
Volatility (6M) Calculated over the trailing 6-month period	2.67%	18.58%	-15.91%
Volatility (1Y) Calculated over the trailing 1-year period	3.72%	22.72%	-19.00%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.73%	25.55%	-21.82%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.73%	24.77%	-21.04%

VTEL vs. VGT - Expense Ratio Comparison

Both VTEL and VGT have an expense ratio of 0.09%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VTEL vs. VGT - Dividend Comparison

VTEL's dividend yield for the trailing twelve months is around 3.80%, more than VGT's 0.33% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VGT Vanguard Information Technology ETF	0.33%	0.40%	0.60%	0.65%	0.91%	0.64%	0.82%	1.11%	1.29%	0.99%	1.31%	1.28%
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

Can I hold both VTEL and VGT in my portfolio?

VTEL and VGT have a correlation of 0.16, 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 VGT?

VGT has higher volatility (11.39%) compared to VTEL (0.98%). In terms of maximum drawdown, VTEL dropped -3.22% vs VGT's -54.63%.

Which ETF is better, VTEL or VGT?

On 1-year performance, VGT leads with 46.82% vs 8.49% for VTEL. Both ETFs have the same 0.09% expense ratio. 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.

Which ETF has performed better, VTEL or VGT?

Over the 1-year period, VGT has performed better with a 46.82% return vs 8.49%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTEL or VGT?

VTEL and VGT have the same expense ratio: 0.09% per year.

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

VTEL has the higher dividend yield at 3.80%, compared with 0.33% for VGT.

What is the main difference between VTEL and VGT?

VTEL is categorized as Municipal Bonds, while VGT is Technology Equities. VTEL tracks S&P 10+ Year National AMT-Free Municipal Bond Index, while VGT tracks MSCI USA IMI Information Technology 25/50 Index.

Which has better risk-adjusted returns?

VTEL currently has the higher Sharpe Ratio (2.30 vs 2.07), 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.