VGIT vs VTEB
Vanguard Intermediate Term Treasury ETF vs Vanguard Tax-Exempt Bond ETF
Quick Verdict
VTEB delivered stronger 1-year returns. VTEB offers more diversification with 3533 holdings.
Side-by-Side Comparison
| Metric | VGIT | VTEB | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $42.1B | $46.0B | |
| Dividend Yield | 3.84% | 3.34% | |
| Holdings | 106 | 9,952 | |
| YTD Return | -0.62% | +0.57% | |
| 1Y Return | +1.32% | +5.15% | |
| 3Y Return (annualized) | +3.60% | +3.20% | |
| 5Y Return (annualized) | -0.12% | +0.58% | |
| Volatility (annualized) | 4.3% | 4.9% | |
| Max Drawdown | -17.2% | -17.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Tax Preferred | |
| Inception | Nov 19, 2009 | Aug 21, 2015 |
VGIT vs VTEB Performance
Vanguard Intermediate Term Treasury ETF (VGIT) is a ETF from Vanguard (US) and Vanguard Tax-Exempt Bond ETF (VTEB) is a ETF from Vanguard (US). Over the past year VGIT returned +1.32% while VTEB returned +5.15%. Year to date, VGIT is down 0.62% versus a gain of 0.57% for VTEB.
Over three years, VGIT compounded at +3.60% per year against +3.20% for VTEB; over five years the annualized figures are -0.12% and +0.58% respectively. Across the full 11-year window we track, VTEB has the edge at +1.27% annualized vs +0.75%. 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 4.3% 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 worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.71. 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 3.84% against 3.34% for VTEB.
Holdings Overlap
VGIT and VTEB share 0 holdings out of 3617 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, VGIT or VTEB?
VGIT has an expense ratio of 0.03% while VTEB charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VGIT or VTEB?
Over the past year VGIT returned +1.32% vs +5.15% for VTEB, so VTEB leads on 1-year performance. Over the longest common window we track (11 years), VGIT annualized +0.75% vs +1.27% for VTEB. Past performance does not guarantee future results.
Which is riskier, VGIT or VTEB?
VTEB has been the more volatile fund at 4.9% annualized versus 4.3% 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 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGIT and VTEB?
VGIT and VTEB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3617 unique securities.
Which pays a higher dividend, VGIT or VTEB?
VGIT yields 3.84% while VTEB yields 3.34%, so VGIT currently pays the higher dividend yield.
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