VOO vs VTEB
VOO vs VTEB
Vanguard S&P 500 ETF vs Vanguard Tax-Exempt Bond ETF
Quick Verdict
VOO delivered stronger 1-year returns. VTEB offers more diversification with 3533 holdings.
Side-by-Side Comparison
| Metric | VOO | VTEB | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $979.0B | $46.0B | |
| Dividend Yield | 1.09% | 3.34% | |
| Holdings | 509 | 9,952 | |
| YTD Return | +13.80% | +0.57% | |
| 1Y Return | +23.71% | +5.15% | |
| 3Y Return (annualized) | +21.50% | +3.20% | |
| 5Y Return (annualized) | +13.44% | +0.58% | |
| Volatility (annualized) | 14.1% | 4.9% | |
| Max Drawdown | -34.3% | -17.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Sep 7, 2010 | Aug 21, 2015 |
VOO vs VTEB Performance
Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US) and Vanguard Tax-Exempt Bond ETF (VTEB) is a ETF from Vanguard (US). Over the past year VOO returned +23.71% while VTEB returned +5.15%. Year to date, VOO is up 13.80% versus a gain of 0.57% for VTEB.
Over three years, VOO compounded at +21.50% per year against +3.20% for VTEB; over five years the annualized figures are +13.44% and +0.58% respectively. Across the full 11-year window we track, VOO has the edge at +13.58% annualized vs +1.27%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% 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 -34.3% for VOO 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
VOO charges 0.03% per year while VTEB charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VOO currently yields 1.09% against 3.34% for VTEB.
Holdings Overlap
VOO and VTEB share 0 holdings out of 4038 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, VOO or VTEB?
VOO 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, VOO or VTEB?
Over the past year VOO returned +23.71% vs +5.15% for VTEB, so VOO leads on 1-year performance. Over the longest common window we track (11 years), VOO annualized +13.58% vs +1.27% for VTEB. Past performance does not guarantee future results.
Which is riskier, VOO or VTEB?
VOO has been the more volatile fund at 14.1% annualized versus 4.9% for VTEB. Worst drawdown: VOO -34.3% vs VTEB -17.0%.
Should I hold both VOO and VTEB?
VOO 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 VOO and VTEB?
VOO and VTEB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 4038 unique securities.
Which pays a higher dividend, VOO or VTEB?
VOO yields 1.09% while VTEB yields 3.34%, so VTEB currently pays the higher dividend yield.
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