VNQ vs VTEB
Vanguard Real Estate ETF vs Vanguard Tax-Exempt Bond ETF
Which is better, VNQ or VTEB?
Mid Cap Blend against Municipal Bond.
VTEB has a lower expense ratio. VNQ 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 | VNQ | VTEB |
|---|---|---|
| Expense Ratio | 0.13% | 0.03%Best |
| AUM | $38.1B | $46.3B |
| Dividend Yield | 3.60% | 3.44% |
| Holdings | 144 | 10,724 |
| YTD Return | +3.60%Best | -3.32% |
| 1Y Return | +1.07%Best | -1.76% |
| 3Y Return (annualized) | +10.55%Best | +3.05% |
| 5Y Return (annualized) | +0.97%Best | -0.03% |
| Volatility (annualized) | 17.4% | 5.0%Best |
| Max Drawdown | -42.8% | -17.0%Best |
| $10,000 over 5 years | $10,495Best | $9,985 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Tax Preferred |
| Style | Mid Cap Blend | Municipal Bond |
| Inception | Sep 23, 2004 | 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 Oct 1, 2026 (11.1 years).
VNQ 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.
VNQ vs VTEB Performance
Vanguard Real Estate ETF (VNQ) is an ETF from Vanguard (US) and Vanguard Tax-Exempt Bond ETF (VTEB) is an ETF from Vanguard (US). Over the past year VNQ returned +1.07% while VTEB returned -1.76%. Year to date, VNQ is up 3.60% versus a loss of 3.32% for VTEB.
Over three years, VNQ compounded at +10.55% per year against +3.05% for VTEB; over five years the annualized figures are +0.97% and -0.03% respectively. Across the full 11-year window we track, VNQ has the edge at +3.87% annualized vs +0.89%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 17.4% compared with 5.0% 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 -42.8% for VNQ 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
VNQ charges 0.13% per year while VTEB charges 0.03%. On a $10,000 position that is $13 vs $3 annually, a gap of $10 per year that compounds over a long holding period. On income, VNQ currently yields 3.60% against 3.44% for VTEB.
Holdings Overlap
We hold position weights for 139 holdings in VNQ and 666 in VTEB, totalling 99.4% and 10.5% 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 139 positions we hold weights for in VNQ and 666 in VTEB, against full books of 144 and 10,724.
What only one of them owns
Measured across the 139 and 666 positions we hold weights for.
VTEB holds 368 positions VNQ does not, 10.5% of the fund.
Largest: CA CAS 5 08/01/2028 0.16%, CA CAS 5 08/01/2029 0.15%, NY NYC 5 08/01/2034 0.12%, WI WIS 5 05/01/2038 0.09%, MD MDS 5 06/01/2038 0.09%
You are not choosing between two funds in isolation.
Whichever of VNQ 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, VNQ or VTEB?
VNQ has an expense ratio of 0.13% while VTEB charges 0.03%. VTEB is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, VNQ or VTEB?
Over the past year VNQ returned +1.07% vs -1.76% for VTEB, so VNQ leads on 1-year performance. Over the longest common window we track (11 years), VNQ annualized +3.87% vs +0.89% for VTEB. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VNQ or VTEB?
VNQ has been the more volatile fund at 17.4% annualized versus 5.0% for VTEB. Worst drawdown: VNQ -42.8% vs VTEB -17.0%.
Should I hold both VNQ and VTEB?
VNQ 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, VNQ or VTEB?
VNQ yields 3.60% while VTEB yields 3.44%, so VNQ currently pays the higher dividend yield.
Is VTEB better than VNQ?
VTEB has a lower expense ratio. VNQ 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.