VTEB vs VWIUX
Vanguard Tax-Exempt Bond ETF vs Vanguard Intermediate Term Tax-Exempt Fund admiral class
Quick Verdict
VTEB has a lower expense ratio. VTEB delivered stronger 1-year returns. VWIUX offers more diversification with 15,066 holdings.
Side-by-Side Comparison
| Metric | VTEB | VWIUX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $48.5B | $86.3B | |
| Dividend Yield | 3.41% | 3.05% | |
| Holdings | 10,566 | 15,066 | |
| YTD Return | +0.78% | -1.23% | |
| 1Y Return | +5.17% | +1.26% | |
| 3Y Return (annualized) | +3.19% | +0.57% | |
| 5Y Return (annualized) | +0.66% | -1.72% | |
| Volatility (annualized) | 4.9% | 5.4% | |
| Max Drawdown | -17.0% | -16.1% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Tax Preferred | Tax Preferred | |
| Inception | Aug 21, 2015 | Feb 12, 2001 |
VTEB vs VWIUX Performance
Vanguard Tax-Exempt Bond ETF (VTEB) is a ETF from Vanguard (US) and Vanguard Intermediate Term Tax-Exempt Fund admiral class (VWIUX) is a mutual fund from Vanguard (US). Over the past year VTEB returned +5.17% while VWIUX returned +1.26%. Year to date, VTEB is up 0.78% versus a loss of 1.23% for VWIUX.
Over three years, VTEB compounded at +3.19% per year against +0.57% for VWIUX; over five years the annualized figures are +0.66% and -1.72% respectively. Across the full 5-year window we track, VTEB has the edge at +1.28% annualized vs -1.72%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWIUX has been the more volatile fund, with annualized monthly volatility of 5.4% 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 -16.1% for VWIUX. 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 0.99. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VTEB charges 0.03% per year while VWIUX charges 0.09%. On a $10,000 position that is $3 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, VTEB currently yields 3.41% against 3.05% for VWIUX.
Holdings Overlap
VTEB and VWIUX share 375 holdings out of 2382 unique holdings combined, representing a 1.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VTEB | Weight in VWIUX | Difference |
|---|---|---|---|
| NY LSLPWR 09/01/2055 | 0.05% | 0.05% | 0.00% |
| NY NYC 5 08/01/2034 | 0.09% | 0.00% | 0.09% |
| MA MASDEV 05/15/2055 | 0.06% | 0.02% | 0.04% |
| CA CAS 5 08/01/2037 | Pro | Pro | Pro |
| TX HARMED 11/15/2054 | Pro | Pro | Pro |
| TX GPTTRN 4 10/01/20 | Pro | Pro | Pro |
| NY NYC 5 12/01/2041 | Pro | Pro | Pro |
| NV LASGEN 5 07/01/20 | Pro | Pro | Pro |
| FL FLSEDU 5 06/01/20 | Pro | Pro | Pro |
| MA MAS 5 12/01/2044 | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, VTEB or VWIUX?
VTEB has an expense ratio of 0.03% while VWIUX charges 0.09%. VTEB is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, VTEB or VWIUX?
Over the past year VTEB returned +5.17% vs +1.26% for VWIUX, so VTEB leads on 1-year performance. Over the longest common window we track (5 years), VTEB annualized +1.28% vs -1.72% for VWIUX. Past performance does not guarantee future results.
Which is riskier, VTEB or VWIUX?
VWIUX has been the more volatile fund at 5.4% annualized versus 4.9% for VTEB. Worst drawdown: VTEB -17.0% vs VWIUX -16.1%.
Should I hold both VTEB and VWIUX?
VTEB and VWIUX have a monthly-return correlation of 0.99, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between VTEB and VWIUX?
VTEB and VWIUX share 375 common holdings with a 1.3% weight overlap. Combined, they hold 2382 unique securities.
Which pays a higher dividend, VTEB or VWIUX?
VTEB yields 3.41% while VWIUX yields 3.05%, so VTEB currently pays the higher dividend yield.
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