VTEB vs VWIUX
Vanguard Tax-Exempt Bond ETF vs Vanguard Intermediate Term Tax-Exempt Fund admiral class
Which is better, VTEB or VWIUX?
Nearly the same fund. VTEB costs less.
VTEB has a lower expense ratio. The two have moved almost in lockstep, correlation 0.99.
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 | VWIUX |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.09% |
| AUM | $45.8B | $86.4B |
| Dividend Yield | 3.41% | 3.13% |
| Holdings | 10,566 | 16,181 |
| YTD Price Return | -2.96% | -2.68% |
| 1Y Price Return | -0.37% | -0.52% |
| 3Y Price Return (annualized) | -0.21% | +0.30% |
| 5Y Price Return (annualized) | -2.34% | -1.95% |
| Volatility (annualized) | 6.1% | 5.3%Best |
| Max Drawdown | -14.2%Best | -15.9% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Tax Preferred | Tax Preferred |
| Style | Municipal Bond | Municipal Bond |
| Inception | Aug 21, 2015 | Feb 12, 2001 |
Not shown on this pair: $10,000 over 5 years, Top 10 Weight.
A price return is not the return of a fund that pays its income out. The coupon or distribution never appears in the price, so the return rows carry no winner here. VTEB currently yields 3.41% and VWIUX 3.13%.
Volatility and max drawdown are measured over the window both funds cover: Sep 7, 2021 to Sep 4, 2026 (5 years).
VTEB vs VWIUX Performance
Vanguard Tax-Exempt Bond ETF (VTEB) is an 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's price moved -0.37% and VWIUX's -0.52%, before the income each one paid out.
Over three years, VTEB compounded at -0.21% per year against +0.30% for VWIUX; over five years the annualized figures are -2.34% and -1.95% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTEB has been the more volatile fund, with annualized monthly volatility of 6.1% compared with 5.3% for VWIUX. 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 -14.2% for VTEB and -15.9% for VWIUX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 3.13% for VWIUX.
Structure and taxes
VWIUX is a mutual fund and VTEB is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
We hold position weights for 994 holdings in VTEB and 1,763 in VWIUX, totalling 8.7% and 20.1% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 375 positions appear in both.
The two holdings books were reported 150 days apart, VTEB as of Jun 30, 2026 and VWIUX as of Jan 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
375 positions in common, counted across the 994 positions we hold weights for in VTEB and 1,763 in VWIUX, against full books of 10,566 and 16,181.
Top Shared Holdings
| Stock | Weight in VTEB | Weight in VWIUX | Difference |
|---|---|---|---|
| NY LSLPWR 09/01/2055Long Island Power Authority 0.03 09/01/2055 | 0.05% | 0.05% | 0.00% |
| NY NYC 5 08/01/2034City Of New York Ny 5 08/01/2034 | 0.09% | 0.00% | 0.09% |
| MA MASDEV 05/15/2055Somerville Ma 5% 06/01/28 | 0.06% | 0.02% | 0.04% |
| CA CAS 5 08/01/2037State Of California 5 08/01/2037 | 0.04% | 0.03% | 0.01% |
| TX HARMED 11/15/2054Harris County Cultural Education Facilities Finance Corp 5 11/15/2054 | 0.01% | 0.06% | 0.05% |
| TX GPTTRN 4 10/01/20Grand Parkway Transportation Corp 4 2045-10-01 | 0.03% | 0.03% | 0.00% |
| NY NYC 5 12/01/2041New York City, New York, General Obligation Bonds, Fiscal 2017 Series B-1 | 0.02% | 0.04% | 0.02% |
| NV LASGEN 5 07/01/20Las Vegas Convention & Visitors Authority 5 07/01/2043 | 0.04% | 0.02% | 0.02% |
| FL FLSEDU 5 06/01/20State Of Florida 5 06/01/2033 | 0.04% | 0.01% | 0.03% |
| MA MAS 5 12/01/2044Commonwealth Of Massachusetts 5 12/01/2044 | 0.04% | 0.01% | 0.03% |
You are not choosing between two funds in isolation.
Whichever of VTEB and VWIUX 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 VWIUX?
VTEB has an expense ratio of 0.03% while VWIUX charges 0.09%. VTEB is the cheaper option, by $6 a year on a $10,000 investment.
Which is riskier, VTEB or VWIUX?
VTEB has been the more volatile fund at 6.1% annualized versus 5.3% for VWIUX. Worst drawdown: VTEB -14.2% vs VWIUX -15.9%.
Should I hold both VTEB and VWIUX?
VTEB and VWIUX have a monthly-return correlation of 0.99, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, VTEB or VWIUX?
VTEB yields 3.41% while VWIUX yields 3.13%, so VTEB currently pays the higher dividend yield.
Is it better to hold VWIUX or VTEB in a taxable account?
VTEB is an ETF and VWIUX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VWIUX better than VTEB?
VTEB has a lower expense ratio. The two have moved almost in lockstep, correlation 0.99. Which one suits a particular account depends on what it is for. This is information, not a recommendation.