BND vs VTEB
Vanguard Total Bond Market ETF vs Vanguard Tax-Exempt Bond ETF
Which is better, BND or VTEB?
Intermediate Term Bond against Municipal Bond.
BND led over 1Y and 3Y, VTEB over 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | BND | VTEB |
|---|---|---|
| Expense Ratio | 0.03%Tie | 0.03%Tie |
| AUM | $160.9B | $48.5B |
| Dividend Yield | 4.04% | 3.44% |
| Holdings | 17,437 | 10,566 |
| YTD Return | -1.23%Best | -1.97% |
| 1Y Return | -0.42%Best | -0.51% |
| 3Y Return (annualized) | +4.09%Best | +2.65% |
| 5Y Return (annualized) | -0.57% | +0.10%Best |
| Volatility (annualized) | 5.0% | 4.9%Best |
| Max Drawdown | -19.6% | -17.0%Best |
| $10,000 over 5 years | $9,718 | $10,050Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Tax Preferred |
| Style | Intermediate Term Bond | Municipal Bond |
| Inception | Apr 3, 2007 | Aug 21, 2015 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Aug 25, 2015 to Sep 18, 2026 (11.1 years).
BND vs VTEB growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 11.1 years both funds cover.
BND vs VTEB Performance
Vanguard Total Bond Market ETF (BND) is an ETF from Vanguard (US) and Vanguard Tax-Exempt Bond ETF (VTEB) is an ETF from Vanguard (US). Over the past year BND returned -0.42% while VTEB returned -0.51%. Year to date, BND is down 1.23% versus a loss of 1.97% for VTEB.
Over three years, BND compounded at +4.09% per year against +2.65% for VTEB; over five years the annualized figures are -0.57% and +0.10% respectively. Across the full 11-year window we track, VTEB has the edge at +1.02% annualized vs +0.34%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BND has been the more volatile fund, with annualized monthly volatility of 5.0% compared with 4.9% for VTEB. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -19.6% for BND and -17.0% for VTEB. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BND charges 0.03% per year while VTEB charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, BND currently yields 4.04% against 3.44% for VTEB.
Holdings Overlap
We hold position weights for 16 holdings in BND and 17 in VTEB, totalling 1.5% and 0.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 16 positions we hold weights for in BND and 17 in VTEB, against full books of 17,437 and 10,566.
You are not choosing between two funds in isolation.
Whichever of BND and VTEB you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, BND or VTEB?
BND has an expense ratio of 0.03% while VTEB charges 0.03%. At the precision these are quoted to, they cost the same.
Which performed better, BND or VTEB?
Over the past year BND returned -0.42% vs -0.51% for VTEB, so BND leads on 1-year performance. Over the longest common window we track (11 years), BND annualized +0.34% vs +1.02% for VTEB. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BND or VTEB?
BND has been the more volatile fund at 5.0% annualized versus 4.9% for VTEB. Worst drawdown: BND -19.6% vs VTEB -17.0%.
Should I hold both BND and VTEB?
BND and VTEB have a monthly-return correlation of 0.85, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, BND or VTEB?
BND yields 4.04% while VTEB yields 3.44%, so BND currently pays the higher dividend yield.
Is VTEB better than BND?
BND led over 1Y and 3Y, VTEB over 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.