VONG vs VTEB

Quick Verdict

VTEB has a lower expense ratio. VONG delivered stronger 1-year returns. VTEB offers more diversification with 3533 holdings.

Lower Fees: VTEBHigher Returns: VONGMore Diversified: VTEB

Side-by-Side Comparison

MetricVONGVTEBWinner
Expense Ratio0.06%0.03%
AUM$44.9B$46.0B
Dividend Yield0.54%3.34%
Holdings3909,952
YTD Return+5.03%+0.62%
1Y Return+11.57%+5.07%
3Y Return (annualized)+22.20%+3.14%
5Y Return (annualized)+12.72%+0.61%
Volatility (annualized)15.9%4.9%
Max Drawdown-32.7%-17.0%
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityTax Preferred
InceptionSep 20, 2010Aug 21, 2015

VONG vs VTEB Performance

Vanguard Russell 1000 Growth ETF (VONG) is a ETF from Vanguard (US) and Vanguard Tax-Exempt Bond ETF (VTEB) is a ETF from Vanguard (US). Over the past year VONG returned +11.57% while VTEB returned +5.07%. Year to date, VONG is up 5.03% versus a gain of 0.62% for VTEB.

Over three years, VONG compounded at +22.20% per year against +3.14% for VTEB; over five years the annualized figures are +12.72% and +0.61% respectively. Across the full 11-year window we track, VONG has the edge at +15.73% annualized vs +1.27%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VONG has been the more volatile fund, with annualized monthly volatility of 15.9% compared with 4.9% 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 -32.7% for VONG 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VONG charges 0.06% per year while VTEB charges 0.03%. On a $10,000 position that is $6 vs $3 annually, a gap of $3 per year that compounds over a long holding period. On income, VONG currently yields 0.54% against 3.34% for VTEB.

Holdings Overlap

0.0%overlap

VONG and VTEB share 0 holdings out of 3919 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, VONG or VTEB?

VONG has an expense ratio of 0.06% while VTEB charges 0.03%. VTEB is the cheaper option. On a $10,000 investment, that is $3 per year of difference.

Which performed better, VONG or VTEB?

Over the past year VONG returned +11.57% vs +5.07% for VTEB, so VONG leads on 1-year performance. Over the longest common window we track (11 years), VONG annualized +15.73% vs +1.27% for VTEB. Past performance does not guarantee future results.

Which is riskier, VONG or VTEB?

VONG has been the more volatile fund at 15.9% annualized versus 4.9% for VTEB. Worst drawdown: VONG -32.7% vs VTEB -17.0%.

Should I hold both VONG and VTEB?

VONG and VTEB have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VONG and VTEB?

VONG and VTEB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3919 unique securities.

Which pays a higher dividend, VONG or VTEB?

VONG yields 0.54% while VTEB yields 3.34%, so VTEB currently pays the higher dividend yield.

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