VT vs VTEB
Vanguard Total World Stock ETF vs Vanguard Tax-Exempt Bond ETF
Which is better, VT or VTEB?
Large Cap Blend against Municipal Bond.
VTEB has a lower expense ratio. VT 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 | VT | VTEB |
|---|---|---|
| Expense Ratio | 0.06% | 0.03%Best |
| AUM | $97.9B | $48.5B |
| Dividend Yield | 1.55% | 3.44% |
| Holdings | 10,133 | 10,566 |
| YTD Return | +12.72%Best | -1.73% |
| 1Y Return | +18.16%Best | -0.22% |
| 3Y Return (annualized) | +20.32%Best | +2.74% |
| 5Y Return (annualized) | +10.87%Best | +0.17% |
| Volatility (annualized) | 14.7% | 4.9%Best |
| Max Drawdown | -34.5% | -17.0%Best |
| $10,000 over 5 years | $16,752Best | $10,085 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Tax Preferred |
| Style | Large Cap Blend | Municipal Bond |
| Inception | Jun 24, 2008 | 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 Sep 17, 2026 (11.1 years).
VT 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
VT vs VTEB Performance
Vanguard Total World Stock ETF (VT) is an ETF from Vanguard (US) and Vanguard Tax-Exempt Bond ETF (VTEB) is an ETF from Vanguard (US). Over the past year VT returned +18.16% while VTEB returned -0.22%. Year to date, VT is up 12.72% versus a loss of 1.73% for VTEB.
Over three years, VT compounded at +20.32% per year against +2.74% for VTEB; over five years the annualized figures are +10.87% and +0.17% respectively. Across the full 11-year window we track, VT has the edge at +11.12% annualized vs +1.04%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VT has been the more volatile fund, with annualized monthly volatility of 14.7% 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 -34.5% for VT 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 0.49. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VT 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, VT currently yields 1.55% against 3.44% for VTEB.
Holdings Overlap
We hold position weights for 9,272 holdings in VT and 17 in VTEB, totalling 90.1% and 0.0% 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 9,272 positions we hold weights for in VT and 17 in VTEB, against full books of 10,133 and 10,566.
You are not choosing between two funds in isolation.
Whichever of VT 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, VT or VTEB?
VT has an expense ratio of 0.06% while VTEB charges 0.03%. VTEB is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, VT or VTEB?
Over the past year VT returned +18.16% vs -0.22% for VTEB, so VT leads on 1-year performance. Over the longest common window we track (11 years), VT annualized +11.12% vs +1.04% for VTEB. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VT or VTEB?
VT has been the more volatile fund at 14.7% annualized versus 4.9% for VTEB. Worst drawdown: VT -34.5% vs VTEB -17.0%.
Should I hold both VT and VTEB?
VT and VTEB have a monthly-return correlation of 0.49, 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, VT or VTEB?
VT yields 1.55% while VTEB yields 3.44%, so VTEB currently pays the higher dividend yield.
Is VTEB better than VT?
VTEB has a lower expense ratio. VT 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.