VBK vs VTEB
VBK vs VTEB
Vanguard Small Cap Growth ETF vs Vanguard Tax-Exempt Bond ETF
Quick Verdict
VTEB has a lower expense ratio. VBK delivered stronger 1-year returns. VTEB offers more diversification with 3533 holdings.
Side-by-Side Comparison
| Metric | VBK | VTEB | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.03% | |
| AUM | $24.8B | $46.0B | |
| Dividend Yield | 0.57% | 3.34% | |
| Holdings | 561 | 9,952 | |
| YTD Return | +17.71% | +0.57% | |
| 1Y Return | +29.45% | +5.15% | |
| 3Y Return (annualized) | +16.91% | +3.20% | |
| 5Y Return (annualized) | +5.29% | +0.58% | |
| Volatility (annualized) | 19.6% | 4.9% | |
| Max Drawdown | -59.4% | -17.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Jan 26, 2004 | Aug 21, 2015 |
VBK vs VTEB Performance
Vanguard Small Cap Growth ETF (VBK) is a ETF from Vanguard (US) and Vanguard Tax-Exempt Bond ETF (VTEB) is a ETF from Vanguard (US). Over the past year VBK returned +29.45% while VTEB returned +5.15%. Year to date, VBK is up 17.71% versus a gain of 0.57% for VTEB.
Over three years, VBK compounded at +16.91% per year against +3.20% for VTEB; over five years the annualized figures are +5.29% and +0.58% respectively. Across the full 11-year window we track, VBK has the edge at +9.41% annualized vs +1.27%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBK has been the more volatile fund, with annualized monthly volatility of 19.6% 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 -59.4% for VBK 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
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 0.57% against 3.34% for VTEB.
Holdings Overlap
VBK and VTEB share 0 holdings out of 4075 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, VBK or VTEB?
VBK 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, VBK or VTEB?
Over the past year VBK returned +29.45% vs +5.15% for VTEB, so VBK leads on 1-year performance. Over the longest common window we track (11 years), VBK annualized +9.41% vs +1.27% for VTEB. Past performance does not guarantee future results.
Which is riskier, VBK or VTEB?
VBK has been the more volatile fund at 19.6% annualized versus 4.9% for VTEB. Worst drawdown: VBK -59.4% vs VTEB -17.0%.
Should I hold both VBK and VTEB?
VBK and VTEB have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VBK and VTEB?
VBK and VTEB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 4075 unique securities.
Which pays a higher dividend, VBK or VTEB?
VBK yields 0.57% while VTEB yields 3.34%, so VTEB currently pays the higher dividend yield.
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