VTEB vs VTV

Quick Verdict

VTV delivered stronger 1-year returns. VTEB offers more diversification with 3533 holdings.

Lower Fees: TiedHigher Returns: VTVMore Diversified: VTEB

Side-by-Side Comparison

MetricVTEBVTVWinner
Expense Ratio0.03%0.03%
AUM$46.0B$186.1B
Dividend Yield3.34%2.29%
Holdings9,952311
YTD Return+0.62%+18.10%
1Y Return+5.07%+29.51%
3Y Return (annualized)+3.14%+18.49%
5Y Return (annualized)+0.61%+12.32%
Volatility (annualized)4.9%14.5%
Max Drawdown-17.0%-61.3%
Fund FamilyVanguard (US)Vanguard (US)
CategoryTax PreferredEquity
InceptionAug 21, 2015Jan 26, 2004

VTEB vs VTV Performance

Vanguard Tax-Exempt Bond ETF (VTEB) is a ETF from Vanguard (US) and Vanguard Value ETF (VTV) is a ETF from Vanguard (US). Over the past year VTEB returned +5.07% while VTV returned +29.51%. Year to date, VTEB is up 0.62% versus a gain of 18.10% for VTV.

Over three years, VTEB compounded at +3.14% per year against +18.49% for VTV; over five years the annualized figures are +0.61% and +12.32% respectively. Across the full 11-year window we track, VTV has the edge at +7.60% annualized vs +1.27%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VTV has been the more volatile fund, with annualized monthly volatility of 14.5% 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 -17.0% for VTEB and -61.3% for VTV. 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 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VTEB charges 0.03% per year while VTV charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VTEB currently yields 3.34% against 2.29% for VTV.

Holdings Overlap

0.0%overlap

VTEB and VTV share 0 holdings out of 3841 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, VTEB or VTV?

VTEB has an expense ratio of 0.03% while VTV charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.

Which performed better, VTEB or VTV?

Over the past year VTEB returned +5.07% vs +29.51% for VTV, so VTV leads on 1-year performance. Over the longest common window we track (11 years), VTEB annualized +1.27% vs +7.60% for VTV. Past performance does not guarantee future results.

Which is riskier, VTEB or VTV?

VTV has been the more volatile fund at 14.5% annualized versus 4.9% for VTEB. Worst drawdown: VTEB -17.0% vs VTV -61.3%.

Should I hold both VTEB and VTV?

VTEB and VTV have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VTEB and VTV?

VTEB and VTV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3841 unique securities.

Which pays a higher dividend, VTEB or VTV?

VTEB yields 3.34% while VTV yields 2.29%, so VTEB currently pays the higher dividend yield.

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