Quick Verdict

VTEB has a lower expense ratio. VTEB delivered stronger 1-year returns. VTEB offers more diversification with 3533 holdings.

Lower Fees: VTEBHigher Returns: VTEBMore Diversified: VTEB

Side-by-Side Comparison

MetricEDVVTEBWinner
Expense Ratio0.05%0.03%
AUM$3.5B$46.0B
Dividend Yield4.83%3.34%
Holdings839,952
YTD Return-4.55%+0.57%
1Y Return-4.35%+5.15%
3Y Return (annualized)-4.75%+3.20%
5Y Return (annualized)-12.33%+0.58%
Volatility (annualized)21.8%4.9%
Max Drawdown-62.0%-17.0%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeTax Preferred
InceptionDec 6, 2007Aug 21, 2015

EDV vs VTEB Performance

Vanguard Extended Duration Treasury ETF (EDV) is a ETF from Vanguard (US) and Vanguard Tax-Exempt Bond ETF (VTEB) is a ETF from Vanguard (US). Over the past year EDV returned -4.35% while VTEB returned +5.15%. Year to date, EDV is down 4.55% versus a gain of 0.57% for VTEB.

Over three years, EDV compounded at -4.75% per year against +3.20% for VTEB; over five years the annualized figures are -12.33% and +0.58% respectively. Across the full 11-year window we track, VTEB has the edge at +1.27% annualized vs -1.42%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

EDV has been the more volatile fund, with annualized monthly volatility of 21.8% 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 -62.0% for EDV and -17.0% for VTEB. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.70. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

EDV charges 0.05% per year while VTEB charges 0.03%. On a $10,000 position that is $5 vs $3 annually, a gap of $2 per year that compounds over a long holding period. On income, EDV currently yields 4.83% against 3.34% for VTEB.

Holdings Overlap

0.0%overlap

EDV and VTEB share 0 holdings out of 3609 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, EDV or VTEB?

EDV has an expense ratio of 0.05% while VTEB charges 0.03%. VTEB is the cheaper option. On a $10,000 investment, that is $2 per year of difference.

Which performed better, EDV or VTEB?

Over the past year EDV returned -4.35% vs +5.15% for VTEB, so VTEB leads on 1-year performance. Over the longest common window we track (11 years), EDV annualized -1.42% vs +1.27% for VTEB. Past performance does not guarantee future results.

Which is riskier, EDV or VTEB?

EDV has been the more volatile fund at 21.8% annualized versus 4.9% for VTEB. Worst drawdown: EDV -62.0% vs VTEB -17.0%.

Should I hold both EDV and VTEB?

EDV and VTEB have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between EDV and VTEB?

EDV and VTEB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3609 unique securities.

Which pays a higher dividend, EDV or VTEB?

EDV yields 4.83% while VTEB yields 3.34%, so EDV currently pays the higher dividend yield.

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