VGIT vs VTEB
Vanguard Intermediate Term Treasury ETF vs Vanguard Tax-Exempt Bond ETF
Which is better, VGIT or VTEB?
Each has led over a different period.
VGIT led over 3Y, VTEB over 1Y, 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 | VGIT | VTEB |
|---|---|---|
| Expense Ratio | 0.03%Tie | 0.03%Tie |
| AUM | $50.8B | $48.5B |
| Dividend Yield | 3.90% | 3.44% |
| Holdings | 106 | 10,566 |
| YTD Return | -2.05% | -1.97%Best |
| 1Y Return | -1.18% | -0.51%Best |
| 3Y Return (annualized) | +3.63%Best | +2.65% |
| 5Y Return (annualized) | -0.43% | +0.10%Best |
| Volatility (annualized) | 4.4%Best | 4.9% |
| Max Drawdown | -17.2% | -17.0%Best |
| $10,000 over 5 years | $9,787 | $10,050Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Tax Preferred |
| Style | - | Municipal Bond |
| Inception | Nov 19, 2009 | 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).
VGIT 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.
VGIT vs VTEB Performance
Vanguard Intermediate Term Treasury ETF (VGIT) is an ETF from Vanguard (US) and Vanguard Tax-Exempt Bond ETF (VTEB) is an ETF from Vanguard (US). Over the past year VGIT returned -1.18% while VTEB returned -0.51%. Year to date, VGIT is down 2.05% versus a loss of 1.97% for VTEB.
Over three years, VGIT compounded at +3.63% per year against +2.65% for VTEB; over five years the annualized figures are -0.43% and +0.10% respectively. Across the full 11-year window we track, VTEB has the edge at +1.02% annualized vs +0.26%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTEB has been the more volatile fund, with annualized monthly volatility of 4.9% compared with 4.4% for VGIT. 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 -17.2% for VGIT 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VGIT charges 0.03% per year while VTEB charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VGIT currently yields 3.90% against 3.44% for VTEB.
You are not choosing between two funds in isolation.
Whichever of VGIT 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, VGIT or VTEB?
VGIT 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, VGIT or VTEB?
Over the past year VGIT returned -1.18% vs -0.51% for VTEB, so VTEB leads on 1-year performance. Over the longest common window we track (11 years), VGIT annualized +0.26% vs +1.02% for VTEB. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VGIT or VTEB?
VTEB has been the more volatile fund at 4.9% annualized versus 4.4% for VGIT. Worst drawdown: VGIT -17.2% vs VTEB -17.0%.
Should I hold both VGIT and VTEB?
VGIT and VTEB have a monthly-return correlation of 0.72, 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, VGIT or VTEB?
VGIT yields 3.90% while VTEB yields 3.44%, so VGIT currently pays the higher dividend yield.
Is VTEB better than VGIT?
VGIT led over 3Y, VTEB over 1Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.