VGSH vs VTEB
Vanguard Short Term Treasury ETF vs Vanguard Tax-Exempt Bond ETF
Which is better, VGSH or VTEB?
Short Term Government Bond against Municipal Bond.
VGSH led over 1Y, 3Y and 5Y, VTEB over 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 | VGSH | VTEB |
|---|---|---|
| Expense Ratio | 0.03%Tie | 0.03%Tie |
| AUM | $34.7B | $48.5B |
| Dividend Yield | 3.82% | 3.44% |
| Holdings | 94 | 10,566 |
| YTD Return | +0.57%Best | -2.11% |
| 1Y Return | +1.76%Best | -0.53% |
| 3Y Return (annualized) | +4.14%Best | +3.09% |
| 5Y Return (annualized) | +1.85%Best | +0.09% |
| Volatility (annualized) | 1.6%Best | 4.9% |
| Max Drawdown | -6.7%Best | -17.0% |
| $10,000 over 5 years | $10,960Best | $10,045 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Tax Preferred |
| Style | Short Term Government Bond | 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 22, 2026 (11.1 years).
VGSH 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.
VGSH vs VTEB Performance
Vanguard Short Term Treasury ETF (VGSH) is an ETF from Vanguard (US) and Vanguard Tax-Exempt Bond ETF (VTEB) is an ETF from Vanguard (US). Over the past year VGSH returned +1.76% while VTEB returned -0.53%. Year to date, VGSH is up 0.57% versus a loss of 2.11% for VTEB.
Over three years, VGSH compounded at +4.14% per year against +3.09% for VTEB; over five years the annualized figures are +1.85% and +0.09% respectively. Across the full 11-year window we track, VTEB has the edge at +1.01% annualized vs +0.89%.
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 1.6% for VGSH. 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 -6.7% for VGSH 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 0.57. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VGSH charges 0.03% per year while VTEB charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VGSH currently yields 3.82% against 3.44% for VTEB.
Holdings Overlap
We hold position weights for 71 holdings in VGSH and 17 in VTEB, totalling 76.6% 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 71 positions we hold weights for in VGSH and 17 in VTEB, against full books of 94 and 10,566.
You are not choosing between two funds in isolation.
Whichever of VGSH 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, VGSH or VTEB?
VGSH 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, VGSH or VTEB?
Over the past year VGSH returned +1.76% vs -0.53% for VTEB, so VGSH leads on 1-year performance. Over the longest common window we track (11 years), VGSH annualized +0.89% vs +1.01% for VTEB. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VGSH or VTEB?
VTEB has been the more volatile fund at 4.9% annualized versus 1.6% for VGSH. Worst drawdown: VGSH -6.7% vs VTEB -17.0%.
Should I hold both VGSH and VTEB?
VGSH and VTEB have a monthly-return correlation of 0.57, 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, VGSH or VTEB?
VGSH yields 3.82% while VTEB yields 3.44%, so VGSH currently pays the higher dividend yield.
Is VTEB better than VGSH?
VGSH led over 1Y, 3Y and 5Y, VTEB over the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.