VTEB vs XLV
Vanguard Tax-Exempt Bond ETF vs State Street Health Care Select Sector SPDR ETF
Which is better, VTEB or XLV?
Municipal Bond against Large Cap Blend.
VTEB has a lower expense ratio. XLV 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 | XLV |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $48.5B | $44.5B |
| Dividend Yield | 3.44% | 1.49% |
| Holdings | 10,566 | 63 |
| YTD Return | -2.70% | +9.47%Best |
| 1Y Return | -1.09% | +24.85%Best |
| 3Y Return (annualized) | +2.88% | +10.56%Best |
| 5Y Return (annualized) | -0.01% | +6.60%Best |
| Volatility (annualized) | 5.0%Best | 14.5% |
| Max Drawdown | -17.0%Best | -28.8% |
| $10,000 over 5 years | $9,995 | $13,765Best |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Tax Preferred | Equity |
| Style | Municipal Bond | Large Cap Blend |
| Inception | Aug 21, 2015 | Dec 16, 1998 |
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 23, 2026 (11.1 years).
VTEB vs XLV 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 XLV Performance
Vanguard Tax-Exempt Bond ETF (VTEB) is an ETF from Vanguard (US) and State Street Health Care Select Sector SPDR ETF (XLV) is an ETF from SPDR State Street Global Advisors. Over the past year VTEB returned -1.09% while XLV returned +24.85%. Year to date, VTEB is down 2.70% versus a gain of 9.47% for XLV.
Over three years, VTEB compounded at +2.88% per year against +10.56% for XLV; over five years the annualized figures are -0.01% and +6.60% respectively. Across the full 11-year window we track, XLV has the edge at +9.43% annualized vs +0.95%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLV has been the more volatile fund, with annualized monthly volatility of 14.5% compared with 5.0% 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 -28.8% for XLV. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.30. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VTEB charges 0.03% per year while XLV charges 0.08%. On a $10,000 position that is $3 vs $8 annually, a gap of $5 per year that compounds over a long holding period. On income, VTEB currently yields 3.44% against 1.49% for XLV.
Holdings Overlap
We hold position weights for 17 holdings in VTEB and 61 in XLV, totalling 0.0% and 99.9% 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 61 in XLV, against full books of 10,566 and 63.
You are not choosing between two funds in isolation.
Whichever of VTEB and XLV 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 XLV?
VTEB has an expense ratio of 0.03% while XLV charges 0.08%. VTEB is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VTEB or XLV?
Over the past year VTEB returned -1.09% vs +24.85% for XLV, so XLV leads on 1-year performance. Over the longest common window we track (11 years), VTEB annualized +0.95% vs +9.43% for XLV. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VTEB or XLV?
XLV has been the more volatile fund at 14.5% annualized versus 5.0% for VTEB. Worst drawdown: VTEB -17.0% vs XLV -28.8%.
Should I hold both VTEB and XLV?
VTEB and XLV have a monthly-return correlation of 0.30, 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 XLV?
VTEB yields 3.44% while XLV yields 1.49%, so VTEB currently pays the higher dividend yield.
Is XLV better than VTEB?
VTEB has a lower expense ratio. XLV 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.