VIITX vs VTEB
Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class vs Vanguard Tax-Exempt Bond ETF
Which is better, VIITX or VTEB?
Intermediate Term Bond against Municipal Bond.
VIITX has a lower expense ratio.
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 | VIITX | VTEB |
|---|---|---|
| Expense Ratio | 0.02%Best | 0.03% |
| AUM | - | $48.5B |
| Dividend Yield | 4.60% | 3.44% |
| Holdings | 2,599 | 10,566 |
| YTD Price Return | -3.46% | -4.17% |
| 1Y Price Return | -3.69% | -3.83% |
| 3Y Price Return (annualized) | +0.19% | -0.54% |
| 5Y Price Return (annualized) | -2.61% | -2.65% |
| Volatility (annualized) | 4.2%Best | 6.2% |
| Max Drawdown | -14.9% | -14.2%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Fixed Income | Tax Preferred |
| Style | Intermediate Term Bond | Municipal Bond |
| Inception | Dec 1, 1997 | Aug 21, 2015 |
Not shown on this pair: $10,000 over 5 years, Top 10 Weight.
A price return is not the return of a fund that pays its income out. The coupon or distribution never appears in the price, so the return rows carry no winner here. VIITX currently yields 4.60% and VTEB 3.44%.
Volatility and max drawdown are measured over the window both funds cover: Sep 20, 2021 to Sep 18, 2026 (5 years).
VIITX vs VTEB Performance
Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class (VIITX) is a mutual fund from Vanguard (US) and Vanguard Tax-Exempt Bond ETF (VTEB) is an ETF from Vanguard (US). Over the past year VIITX's price moved -3.69% and VTEB's -3.83%, before the income each one paid out.
Over three years, VIITX compounded at +0.19% per year against -0.54% for VTEB; over five years the annualized figures are -2.61% and -2.65% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTEB has been the more volatile fund, with annualized monthly volatility of 6.2% compared with 4.2% for VIITX. 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 -14.9% for VIITX and -14.2% 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VIITX charges 0.02% per year while VTEB charges 0.03%. On a $10,000 position that is $2 vs $3 annually, a gap of $1 per year that compounds over a long holding period. On income, VIITX currently yields 4.60% against 3.44% for VTEB.
Structure and taxes
VIITX is a mutual fund and VTEB is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
We hold position weights for 1,285 holdings in VIITX and 17 in VTEB, totalling 52.5% and 0.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 92 days apart, VIITX as of Apr 30, 2026 and VTEB as of Jul 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 1,285 positions we hold weights for in VIITX and 17 in VTEB, against full books of 2,599 and 10,566.
You are not choosing between two funds in isolation.
Whichever of VIITX 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, VIITX or VTEB?
VIITX has an expense ratio of 0.02% while VTEB charges 0.03%. VIITX is the cheaper option, by $1 a year on a $10,000 investment.
Which is riskier, VIITX or VTEB?
VTEB has been the more volatile fund at 6.2% annualized versus 4.2% for VIITX. Worst drawdown: VIITX -14.9% vs VTEB -14.2%.
Should I hold both VIITX and VTEB?
VIITX and VTEB have a monthly-return correlation of 0.88, 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, VIITX or VTEB?
VIITX yields 4.60% while VTEB yields 3.44%, so VIITX currently pays the higher dividend yield.
Is it better to hold VIITX or VTEB in a taxable account?
VTEB is an ETF and VIITX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VTEB better than VIITX?
VIITX has a lower expense ratio. Which one suits a particular account depends on what it is for. This is information, not a recommendation.