VTEB vs VTI
Vanguard Tax-Exempt Bond ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, VTEB or VTI?
Municipal Bond against Large Cap Blend.
VTI 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 | VTEB | VTI |
|---|---|---|
| Expense Ratio | 0.03%Tie | 0.03%Tie |
| AUM | $48.5B | $666.9B |
| Dividend Yield | 3.44% | 1.03% |
| Holdings | 10,566 | 3,543 |
| YTD Return | -2.11% | +14.05%Best |
| 1Y Return | -0.53% | +16.93%Best |
| 3Y Return (annualized) | +3.09% | +22.65%Best |
| 5Y Return (annualized) | +0.09% | +12.46%Best |
| Volatility (annualized) | 4.9%Best | 15.6% |
| Max Drawdown | -17.0%Best | -35.0% |
| $10,000 over 5 years | $10,045 | $17,988Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Tax Preferred | Equity |
| Style | Municipal Bond | Large Cap Blend |
| Inception | Aug 21, 2015 | May 24, 2001 |
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 22, 2026 (11.1 years).
VTEB vs VTI 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.
VTEB vs VTI Performance
Vanguard Tax-Exempt Bond ETF (VTEB) is an ETF from Vanguard (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year VTEB returned -0.53% while VTI returned +16.93%. Year to date, VTEB is down 2.11% versus a gain of 14.05% for VTI.
Over three years, VTEB compounded at +3.09% per year against +22.65% for VTI; over five years the annualized figures are +0.09% and +12.46% respectively. Across the full 11-year window we track, VTI has the edge at +13.94% annualized vs +1.01%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.6% 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 -17.0% for VTEB and -35.0% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.42. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VTEB charges 0.03% per year while VTI charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VTEB currently yields 3.44% against 1.03% for VTI.
Holdings Overlap
We hold position weights for 17 holdings in VTEB and 3,463 in VTI, totalling 0.0% and 98.1% 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 17 positions we hold weights for in VTEB and 3,463 in VTI, against full books of 10,566 and 3,543.
You are not choosing between two funds in isolation.
Whichever of VTEB and VTI 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, VTEB or VTI?
VTEB has an expense ratio of 0.03% while VTI charges 0.03%. At the precision these are quoted to, they cost the same.
Which performed better, VTEB or VTI?
Over the past year VTEB returned -0.53% vs +16.93% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (11 years), VTEB annualized +1.01% vs +13.94% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VTEB or VTI?
VTI has been the more volatile fund at 15.6% annualized versus 4.9% for VTEB. Worst drawdown: VTEB -17.0% vs VTI -35.0%.
Should I hold both VTEB and VTI?
VTEB and VTI have a monthly-return correlation of 0.42, 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, VTEB or VTI?
VTEB yields 3.44% while VTI yields 1.03%, so VTEB currently pays the higher dividend yield.
Is VTI better than VTEB?
VTI 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.