VTI vs. VTEB
VTI (Vanguard Total Stock Market ETF) and VTEB (Vanguard Tax-Exempt Bond ETF) are both exchange-traded funds - VTI is a Large Cap Blend Equities fund tracking the CRSP US Total Market Index, while VTEB is a Municipal Bonds fund tracking the S&P National AMT-Free Municipal Bond Index. Both are passively managed. Over the past 10 years, VTI returned 14.84%/yr vs 2.04%/yr for VTEB. At a 0.03 correlation, their price movements are largely independent. Both charge a 0.03% expense ratio.
Performance
VTI vs. VTEB - Performance Comparison
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Returns By Period
In the year-to-date period, VTI achieves a 9.05% return, which is significantly higher than VTEB's 1.42% return. Over the past 10 years, VTI has outperformed VTEB with an annualized return of 14.84%, while VTEB has yielded a comparatively lower 2.04% annualized return.
VTI
- 1D
- 0.30%
- 1M
- 0.44%
- YTD
- 9.05%
- 6M
- 8.94%
- 1Y
- 24.96%
- 3Y*
- 21.05%
- 5Y*
- 12.25%
- 10Y*
- 14.84%
VTEB
- 1D
- -0.02%
- 1M
- 0.35%
- YTD
- 1.42%
- 6M
- 1.91%
- 1Y
- 7.01%
- 3Y*
- 3.49%
- 5Y*
- 0.80%
- 10Y*
- 2.04%
VTI vs. VTEB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VTI Vanguard Total Stock Market ETF | 9.05% | 17.10% | 23.81% | 26.05% | -19.52% | 25.68% | 21.08% | 30.67% | -5.23% | 21.21% |
VTEB Vanguard Tax-Exempt Bond ETF | 1.42% | 3.72% | 1.31% | 6.15% | -7.99% | 1.14% | 5.19% | 7.35% | 1.04% | 4.87% |
Correlation
The correlation between VTI and VTEB is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.25 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.24 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.19 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.06 |
Correlation (All Time) Calculated using the full available price history since Aug 26, 2015 | 0.03 |
Over the past year, VTI and VTEB have become more correlated (0.25) than their long-term average of 0.03, meaning their price movements have been converging.
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Return for Risk
VTI vs. VTEB — Risk / Return Rank
VTI
VTEB
VTI vs. VTEB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Stock Market ETF (VTI) and Vanguard Tax-Exempt Bond ETF (VTEB). 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.
| VTI | VTEB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.59 | ||
| Sortino ratioReturn per unit of downside risk | -1.14 | ||
| Omega ratioGain probability vs. loss probability | 1.36 | 1.57 | -0.21 |
| Calmar ratioReturn relative to maximum drawdown | 2.81 | 2.60 | +0.21 |
| Martin ratioReturn relative to average drawdown | 12.85 | 9.21 | +3.63 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VTI | VTEB | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.02 | 2.61 | -0.59 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.71 | 0.21 | +0.50 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.81 | 0.39 | +0.42 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.50 | 0.47 | +0.03 |
Drawdowns
VTI vs. VTEB - Drawdown Comparison
The maximum VTI drawdown since its inception was -55.45%, which is greater than VTEB's maximum drawdown of -17.00%. Use the drawdown chart below to compare losses from any high point for VTI and VTEB.
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Drawdown Indicators
| VTI | VTEB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -55.45% | -17.00% | -38.45% |
Max Drawdown (1Y)Largest decline over 1 year | -8.92% | -2.71% | -6.21% |
Max Drawdown (3Y)Largest decline over 3 years | -19.30% | -5.53% | -13.77% |
Max Drawdown (5Y)Largest decline over 5 years | -25.36% | -12.64% | -12.72% |
Max Drawdown (10Y)Largest decline over 10 years | -35.00% | -17.00% | -18.00% |
Current DrawdownCurrent decline from peak | -2.64% | -0.56% | -2.08% |
Average DrawdownAverage peak-to-trough decline | -8.02% | -2.32% | -5.70% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.95% | 0.76% | +1.19% |
Volatility
VTI vs. VTEB - Volatility Comparison
Vanguard Total Stock Market ETF (VTI) has a higher volatility of 3.88% compared to Vanguard Tax-Exempt Bond ETF (VTEB) at 0.90%. This indicates that VTI's price experiences larger fluctuations and is considered to be riskier than VTEB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTI | VTEB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.88% | 0.90% | +2.98% |
Volatility (6M)Calculated over the trailing 6-month period | 9.55% | 2.02% | +7.53% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.44% | 2.71% | +9.73% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.44% | 3.90% | +13.54% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.33% | 5.26% | +13.07% |
VTI vs. VTEB - Expense Ratio Comparison
Both VTI and VTEB have an expense ratio of 0.03%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
VTI vs. VTEB - Dividend Comparison
VTI's dividend yield for the trailing twelve months is around 1.03%, less than VTEB's 3.36% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VTEB Vanguard Tax-Exempt Bond ETF | 3.36% | 3.29% | 3.14% | 2.79% | 2.09% | 1.64% | 1.99% | 2.30% | 2.25% | 1.96% | 1.66% | 0.58% |
VTI Vanguard Total Stock Market ETF | 1.03% | 1.12% | 1.27% | 1.44% | 1.66% | 1.21% | 1.42% | 1.78% | 2.04% | 1.71% | 1.92% | 1.98% |
Frequently Asked Questions
VTI and VTEB have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTI has higher volatility (3.88%) compared to VTEB (0.90%). In terms of maximum drawdown, VTI dropped -55.45% vs VTEB's -17.00%.
On 10-year performance, VTI leads with 14.84% vs 2.04% for VTEB. Both ETFs have the same 0.03% expense ratio. On volatility, VTEB has been the lower-risk option at 0.90%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VTI has performed better with a 14.84% return vs 2.04%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTI and VTEB have the same expense ratio: 0.03% per year.
VTEB has the higher dividend yield at 3.36%, compared with 1.03% for VTI.
VTI is categorized as Large Cap Blend Equities, while VTEB is Municipal Bonds. VTI tracks CRSP US Total Market Index, while VTEB tracks S&P National AMT-Free Municipal Bond Index.
VTEB currently has the higher Sharpe Ratio (2.61 vs 2.02), 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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