VOT vs VTEB
Vanguard Mid-Cap Growth ETF vs Vanguard Tax-Exempt Bond ETF
Quick Verdict
VTEB has a lower expense ratio. VOT delivered stronger 1-year returns. VTEB offers more diversification with 3533 holdings.
Side-by-Side Comparison
| Metric | VOT | VTEB | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.03% | |
| AUM | $19.9B | $46.0B | |
| Dividend Yield | 0.65% | 3.34% | |
| Holdings | 136 | 9,952 | |
| YTD Return | +8.89% | +0.51% | |
| 1Y Return | +8.14% | +4.96% | |
| 3Y Return (annualized) | +15.33% | +3.17% | |
| 5Y Return (annualized) | +5.51% | +0.57% | |
| Volatility (annualized) | 18.5% | 4.9% | |
| Max Drawdown | -60.3% | -17.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Aug 17, 2006 | Aug 21, 2015 |
VOT vs VTEB Performance
Vanguard Mid-Cap Growth ETF (VOT) is a ETF from Vanguard (US) and Vanguard Tax-Exempt Bond ETF (VTEB) is a ETF from Vanguard (US). Over the past year VOT returned +8.14% while VTEB returned +4.96%. Year to date, VOT is up 8.89% versus a gain of 0.51% for VTEB.
Over three years, VOT compounded at +15.33% per year against +3.17% for VTEB; over five years the annualized figures are +5.51% and +0.57% respectively. Across the full 11-year window we track, VOT has the edge at +9.60% annualized vs +1.26%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOT has been the more volatile fund, with annualized monthly volatility of 18.5% 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 -60.3% for VOT 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VOT charges 0.05% per year while VTEB charges 0.03%. On a $10,000 position that is $5 vs $3 annually, a gap of $2 per year that compounds over a long holding period. On income, VOT currently yields 0.65% against 3.34% for VTEB.
Holdings Overlap
VOT and VTEB share 0 holdings out of 3654 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, VOT or VTEB?
VOT has an expense ratio of 0.05% while VTEB charges 0.03%. VTEB is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VOT or VTEB?
Over the past year VOT returned +8.14% vs +4.96% for VTEB, so VOT leads on 1-year performance. Over the longest common window we track (11 years), VOT annualized +9.60% vs +1.26% for VTEB. Past performance does not guarantee future results.
Which is riskier, VOT or VTEB?
VOT has been the more volatile fund at 18.5% annualized versus 4.9% for VTEB. Worst drawdown: VOT -60.3% vs VTEB -17.0%.
Should I hold both VOT and VTEB?
VOT and VTEB have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VOT and VTEB?
VOT and VTEB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3654 unique securities.
Which pays a higher dividend, VOT or VTEB?
VOT yields 0.65% while VTEB yields 3.34%, so VTEB currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.