VTEL vs VTI
Vanguard Long-Term Tax-Exempt Bond ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTEL offers more diversification with 4,229 holdings.
Side-by-Side Comparison
| Metric | VTEL | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.03% | |
| AUM | $288M | $666.9B | |
| Dividend Yield | 3.76% | 1.07% | |
| Holdings | 4,229 | 3,543 | |
| YTD Return | -1.84% | +12.65% | |
| 1Y Return | +4.31% | +21.39% | |
| 3Y Return (annualized) | - | +21.54% | |
| 5Y Return (annualized) | - | +12.11% | |
| Volatility (annualized) | 5.4% | 15.3% | |
| Max Drawdown | -3.6% | -56.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 6, 2025 | May 24, 2001 |
VTEL vs VTI Performance
Vanguard Long-Term Tax-Exempt Bond ETF (VTEL) is a ETF from Vanguard (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year VTEL returned +4.31% while VTI returned +21.39%. Year to date, VTEL is down 1.84% versus a gain of 12.65% for VTI.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 5.4% for VTEL. 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 -3.6% for VTEL and -56.6% for VTI. 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTEL charges 0.09% per year while VTI charges 0.03%. On a $10,000 position that is $9 vs $3 annually, a gap of $6 per year that compounds over a long holding period. On income, VTEL currently yields 3.76% against 1.07% for VTI.
Holdings Overlap
VTEL and VTI share 0 holdings out of 3444 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, VTEL or VTI?
VTEL has an expense ratio of 0.09% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, VTEL or VTI?
Over the past year VTEL returned +4.31% vs +21.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (1 years), VTEL annualized +3.81% vs +8.07% for VTI. Past performance does not guarantee future results.
Which is riskier, VTEL or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 5.4% for VTEL. Worst drawdown: VTEL -3.6% vs VTI -56.6%.
Should I hold both VTEL and VTI?
VTEL and VTI have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTEL and VTI?
VTEL and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3444 unique securities.
Which pays a higher dividend, VTEL or VTI?
VTEL yields 3.76% while VTI yields 1.07%, so VTEL currently pays the higher dividend yield.
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