VBK vs VTEB
Vanguard Morningstar Small-Cap Growth ETF vs Vanguard Tax-Exempt Bond ETF
Which is better, VBK or VTEB?
Small Cap Growth against Municipal Bond.
VTEB has a lower expense ratio. VBK led over 1Y, 3Y, 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 | VBK | VTEB |
|---|---|---|
| Expense Ratio | 0.05% | 0.03%Best |
| AUM | $23.2B | $48.5B |
| Dividend Yield | 0.44% | 3.44% |
| Holdings | 553 | 10,566 |
| YTD Return | +10.45%Best | -1.97% |
| 1Y Return | +11.44%Best | -0.51% |
| 3Y Return (annualized) | +16.03%Best | +2.65% |
| 5Y Return (annualized) | +4.05%Best | +0.10% |
| Volatility (annualized) | 19.9% | 4.9%Best |
| Max Drawdown | -38.8% | -17.0%Best |
| $10,000 over 5 years | $12,196Best | $10,050 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Tax Preferred |
| Style | Small Cap Growth | Municipal Bond |
| Inception | Jan 26, 2004 | 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).
VBK 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
VBK vs VTEB Performance
Vanguard Morningstar Small-Cap Growth ETF (VBK) is an ETF from Vanguard (US) and Vanguard Tax-Exempt Bond ETF (VTEB) is an ETF from Vanguard (US). Over the past year VBK returned +11.44% while VTEB returned -0.51%. Year to date, VBK is up 10.45% versus a loss of 1.97% for VTEB.
Over three years, VBK compounded at +16.03% per year against +2.65% for VTEB; over five years the annualized figures are +4.05% and +0.10% respectively. Across the full 11-year window we track, VBK has the edge at +10.14% annualized vs +1.02%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBK has been the more volatile fund, with annualized monthly volatility of 19.9% 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 -38.8% for VBK 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 0.44. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VBK 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, VBK currently yields 0.44% against 3.44% for VTEB.
Holdings Overlap
We hold position weights for 542 holdings in VBK and 17 in VTEB, totalling 97.2% 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 542 positions we hold weights for in VBK and 17 in VTEB, against full books of 553 and 10,566.
You are not choosing between two funds in isolation.
Whichever of VBK 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, VBK or VTEB?
VBK has an expense ratio of 0.05% while VTEB charges 0.03%. VTEB is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, VBK or VTEB?
Over the past year VBK returned +11.44% vs -0.51% for VTEB, so VBK leads on 1-year performance. Over the longest common window we track (11 years), VBK annualized +10.14% vs +1.02% for VTEB. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VBK or VTEB?
VBK has been the more volatile fund at 19.9% annualized versus 4.9% for VTEB. Worst drawdown: VBK -38.8% vs VTEB -17.0%.
Should I hold both VBK and VTEB?
VBK and VTEB have a monthly-return correlation of 0.44, 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, VBK or VTEB?
VBK yields 0.44% while VTEB yields 3.44%, so VTEB currently pays the higher dividend yield.
Is VTEB better than VBK?
VTEB has a lower expense ratio. VBK led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.