VEA vs VTEB
Vanguard FTSE Developed Markets ETF vs Vanguard Tax-Exempt Bond ETF
Which is better, VEA or VTEB?
Large Cap Blend against Municipal Bond.
VEA 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 | VEA | VTEB |
|---|---|---|
| Expense Ratio | 0.03%Tie | 0.03%Tie |
| AUM | $230.3B | $48.5B |
| Dividend Yield | 2.49% | 3.44% |
| Holdings | 3,886 | 10,566 |
| YTD Return | +13.73%Best | -1.97% |
| 1Y Return | +21.98%Best | -0.51% |
| 3Y Return (annualized) | +19.84%Best | +2.65% |
| 5Y Return (annualized) | +10.22%Best | +0.10% |
| Volatility (annualized) | 15.4% | 4.9%Best |
| Max Drawdown | -39.9% | -17.0%Best |
| $10,000 over 5 years | $16,267Best | $10,050 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Tax Preferred |
| Style | Large Cap Blend | Municipal Bond |
| Inception | Jul 20, 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).
VEA 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.
VEA vs VTEB Performance
Vanguard FTSE Developed Markets ETF (VEA) is an ETF from Vanguard (US) and Vanguard Tax-Exempt Bond ETF (VTEB) is an ETF from Vanguard (US). Over the past year VEA returned +21.98% while VTEB returned -0.51%. Year to date, VEA is up 13.73% versus a loss of 1.97% for VTEB.
Over three years, VEA compounded at +19.84% per year against +2.65% for VTEB; over five years the annualized figures are +10.22% and +0.10% respectively. Across the full 11-year window we track, VEA has the edge at +7.93% annualized vs +1.02%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEA has been the more volatile fund, with annualized monthly volatility of 15.4% 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 -39.9% for VEA 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 0.52. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VEA charges 0.03% per year while VTEB charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VEA currently yields 2.49% against 3.44% for VTEB.
Holdings Overlap
We hold position weights for 3,754 holdings in VEA and 17 in VTEB, totalling 94.2% 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 3,754 positions we hold weights for in VEA and 17 in VTEB, against full books of 3,886 and 10,566.
You are not choosing between two funds in isolation.
Whichever of VEA 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, VEA or VTEB?
VEA 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, VEA or VTEB?
Over the past year VEA returned +21.98% vs -0.51% for VTEB, so VEA leads on 1-year performance. Over the longest common window we track (11 years), VEA annualized +7.93% vs +1.02% for VTEB. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VEA or VTEB?
VEA has been the more volatile fund at 15.4% annualized versus 4.9% for VTEB. Worst drawdown: VEA -39.9% vs VTEB -17.0%.
Should I hold both VEA and VTEB?
VEA and VTEB have a monthly-return correlation of 0.52, 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, VEA or VTEB?
VEA yields 2.49% while VTEB yields 3.44%, so VTEB currently pays the higher dividend yield.
Is VTEB better than VEA?
VEA 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.