VTEL vs. VXUS

Last updated Jun 3, 2026

VTEL (Vanguard Long-Term Tax-Exempt Bond ETF) and VXUS (Vanguard Total International Stock 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 VXUS is a Global Equities fund tracking the FTSE Global All Cap ex US Index. Both are passively managed. Over the past year, VTEL returned 8.64% vs 32.67% for VXUS. At a 0.28 correlation, their price movements are largely independent. VTEL charges 0.09%/yr vs 0.05%/yr for VXUS.

Performance

VTEL vs. VXUS - 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 International Stock ETF (VXUS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTEL achieves a 1.88% return, which is significantly lower than VXUS's 15.39% return.

VTEL

• 1D: 0.21%
• 1M: 0.68%
• YTD: 1.88%
• 6M: 2.25%
• 1Y: 8.64%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VXUS

• 1D: 0.75%
• 1M: 4.81%
• YTD: 15.39%
• 6M: 18.56%
• 1Y: 32.67%
• 3Y*: 19.70%
• 5Y*: 8.88%
• 10Y*: 9.86%

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

VTEL vs. VXUS - Yearly Performance Comparison

	2026 (YTD)	2025
VTEL Vanguard Long-Term Tax-Exempt Bond ETF	1.88%	6.66%
VXUS Vanguard Total International Stock ETF	15.39%	16.88%

Correlation

The correlation between VTEL and VXUS is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.27
Correlation (All Time) Calculated using the full available price history since May 23, 2025	0.28

Return for Risk

VTEL vs. VXUS — Risk / Return Rank

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

VTEL

VTEL Risk / Return Rank: 66
VTEL Sharpe Ratio Rank: 69
VTEL Sortino Ratio Rank: 76
VTEL Omega Ratio Rank: 79
VTEL Calmar Ratio Rank: 51
VTEL Martin Ratio Rank: 53

VXUS

VXUS Risk / Return Rank: 63
VXUS Sharpe Ratio Rank: 64
VXUS Sortino Ratio Rank: 63
VXUS Omega Ratio Rank: 65
VXUS Calmar Ratio Rank: 60
VXUS Martin Ratio Rank: 65

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. VXUS - 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 International Stock ETF (VXUS). 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.

	VTEL	VXUS	Difference
Sharpe ratio Return per unit of total volatility	2.32	2.16	+0.16
Sortino ratio Return per unit of downside risk	3.49	2.96	+0.53
Omega ratio Gain probability vs. loss probability	1.48	1.40	+0.09
Calmar ratio Return relative to maximum drawdown	2.58	3.02	-0.44
Martin ratio Return relative to average drawdown	9.23	11.82	-2.59
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VTEL vs. VXUS - Sharpe Ratio Comparison

The current VTEL Sharpe Ratio is 2.32, which is comparable to the VXUS Sharpe Ratio of 2.16. The chart below compares the historical Sharpe Ratios of VTEL and VXUS, 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

	VTEL	VXUS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.32	2.16	+0.16
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.56	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.58	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.26	0.39	+1.87

Drawdowns

VTEL vs. VXUS - Drawdown Comparison

The maximum VTEL drawdown since its inception was -3.22%, smaller than the maximum VXUS drawdown of -35.97%. Use the drawdown chart below to compare losses from any high point for VTEL and VXUS.

Drawdown Indicators

	VTEL	VXUS	Difference
Max Drawdown Largest peak-to-trough decline	-3.22%	-35.97%	+32.75%
Max Drawdown (1Y) Largest decline over 1 year	-3.22%	-11.27%	+8.05%
Max Drawdown (3Y) Largest decline over 3 years	—	-13.58%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-29.44%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-35.97%	—
Current Drawdown Current decline from peak	-0.19%	0.00%	-0.19%
Average Drawdown Average peak-to-trough decline	-0.59%	-8.22%	+7.63%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.90%	2.88%	-1.98%

Volatility

VTEL vs. VXUS - Volatility Comparison

The current volatility for Vanguard Long-Term Tax-Exempt Bond ETF (VTEL) is 1.26%, while Vanguard Total International Stock ETF (VXUS) has a volatility of 5.57%. This indicates that VTEL experiences smaller price fluctuations and is considered to be less risky than VXUS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTEL	VXUS	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.26%	5.57%	-4.31%
Volatility (6M) Calculated over the trailing 6-month period	2.64%	12.97%	-10.33%
Volatility (1Y) Calculated over the trailing 1-year period	3.75%	15.19%	-11.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.77%	16.04%	-12.27%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.77%	17.16%	-13.39%

VTEL vs. VXUS - Expense Ratio Comparison

VTEL has a 0.09% expense ratio, which is higher than VXUS's 0.05% 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. VXUS - Dividend Comparison

VTEL's dividend yield for the trailing twelve months is around 3.81%, more than VXUS's 2.63% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VTEL Vanguard Long-Term Tax-Exempt Bond ETF	3.81%	2.23%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VXUS Vanguard Total International Stock ETF	2.63%	3.18%	3.37%	3.24%	3.09%	3.10%	2.14%	3.06%	3.18%	2.73%	2.93%	2.83%

Frequently Asked Questions

Can I hold both VTEL and VXUS in my portfolio?

VTEL and VXUS have a correlation of 0.27, 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 VXUS?

VXUS has higher volatility (5.57%) compared to VTEL (1.26%). In terms of maximum drawdown, VTEL dropped -3.22% vs VXUS's -35.97%.

Which ETF is better, VTEL or VXUS?

On 1-year performance, VXUS leads with 32.67% vs 8.64% for VTEL. On fees, VXUS is cheaper at 0.05% per year. On volatility, VTEL has been the lower-risk option at 1.26%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VTEL or VXUS?

Over the 1-year period, VXUS has performed better with a 32.67% return vs 8.64%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTEL or VXUS?

VXUS is cheaper with a 0.05% expense ratio, compared with 0.09% for VTEL.

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

VTEL has the higher dividend yield at 3.81%, compared with 2.63% for VXUS.

What is the main difference between VTEL and VXUS?

VTEL is categorized as Municipal Bonds, while VXUS is Global Equities. VTEL tracks S&P 10+ Year National AMT-Free Municipal Bond Index, while VXUS tracks FTSE Global All Cap ex US Index. Their fees differ too: 0.09% for VTEL and 0.05% for VXUS.

Which has better risk-adjusted returns?

VTEL currently has the higher Sharpe Ratio (2.32 vs 2.16), 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.