# How Vanguard Tax-Exempt Bond ETF (VTEB) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/vteb
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on VTEB alone. It places VTEB (Vanguard Tax-Exempt Bond ETF) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where VTEB stands in the market, and of the alternatives worth a closer look.

Period covered: VTEB's full trading record, from August 2015 through September 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **Right now:** Over the past 6 months, VTEB fell 3.3% while the S&P 500 rose 9.1%. That said, both VTEB and the S&P 500 are within a few percent of a record high.
- **Fund or market?:** VTEB fell 3.3% over the past 3 months, in line with the US bond market ETF AGG (iShares Core U.S. Aggregate Bond ETF), which fell 1.7%. The S&P 500 rose 3.9%.
- **Long term:** VTEB turned $10,000 into $11,900 over the past decade, against $42,100 in the S&P 500. VTEB's 10-year return of 18.6% puts it behind 90% of the ETFs with at least $100 million in assets with that much history. The S&P 500 returned 321%.
- **In a crash:** The Covid crash took 17.0% off VTEB, against 33.7% for the S&P 500. That was more than SUB (iShares Short-Term National Muni Bond ETF, 9.4%) but less than HYD (VanEck High Yield Muni ETF, 35.6%).
- **Diversification:** Against the S&P 500, VTEB has a correlation of 0.64 over 5 years, less closely than 70% of ETFs with at least $100 million in assets. Next to an index fund it is some diversification, but not a hedge. VTEB now moves more with the S&P 500: a correlation of 0.64 over the past 5 years, up from 0.14 in the 5 years before.
- **Better options**
  - **Nearby categories and themes:** SGOV (iShares 0-3 Month Treasury Bond ETF, treasury bonds) and NEAR (iShares Short Duration Bond Active ETF, short-term bonds) earned more than VTEB with less volatility over the past 5 years. SGOV returned 3.8% a year at 0.3% volatility, against 0.3% a year at 4.1%.
  - **Whole market:** Few investments have done better on both counts: only 62 of the 3,633 stocks and funds worth at least $500 million earned more than VTEB with less volatility over the past 5 years, among them SGOV (iShares 0-3 Month Treasury Bond ETF), VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) and BSV (Vanguard Short-Term Bond ETF).

## How much would $10,000 in VTEB have grown?

This chart tracks a hypothetical $10,000 investment in VTEB over the past 11 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of VTEB over the same span and VTEB's popular alternatives, among those that traded for the entire period.

- $10,000 invested in VTEB at the end of September 2015 would have grown to $12,258 by September 2026, less than the $47,605 it would have become in SPY, an S&P 500 fund.
- Six of the eight other investments on the chart ended ahead of VTEB, and VTIP finished highest, at $13,519.

## VTEB at a glance

This section summarizes the key facts about the fund, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- VTEB's deepest decline since it began trading in 2015 was 17.0%, in March 2020. It took four months from the low to climb back to its old high.
- Over ten full calendar years, VTEB's best was 2019, when it returned 7.3%, and its worst was 2022, when it lost 8.0%. It lost money in one of those years.
- VTEB is 4.2% below its all-time high.

- Type: ETF, Bonds (Asset Management - Bonds)
- Trading since: August 25, 2015
- Assets: $52B
- Expense ratio: 0.03%
- Volatility (5 years): 4.1%; Sharpe ratio: 0.09
- Worst decline ever: −17.0%, from March 9, 2020 to March 19, 2020; back at its high by July 30, 2020

| Period | VTEB total return |
| --- | --- |
| 1 month | −0.3% |
| 3 months | −3.3% |
| 6 months | −3.3% |
| year to date | −2.3% |
| 1 year | −1.8% |
| 3 years | +11.5% |
| 5 years | +1.4% |
| 10 years | +18.6% |

## VTEB against the whole market

Where VTEB ranks among every stock and fund, and what across the market has done better.

### How does VTEB rank among all ETFs?

This section ranks VTEB on return, volatility, risk-adjusted return and worst decline against every ETF worth at least $100 million with enough history.

- VTEB is among the steadier ETFs: its price swings rank in the top 6% of the 1,560 ETFs with at least $100 million in assets, where the top is the calmest.
- VTEB's 3-year return ranks in the bottom 5% of the 1,949 ETFs with at least $100 million in assets with 3 years of history.

| Measure | VTEB | Rank |
| --- | --- | --- |
| 1-year return | −1.8% | 2,140 of 2,485 (top 87%) |
| 3-year return | +11.5% | 1,861 of 1,949 (top 96%) |
| 5-year return | +1.4% | 1,348 of 1,560 (top 87%) |
| 10-year return | +18.6% | 860 of 958 (top 90%) |
| Volatility, 5 years | 4.1% | 95 of 1,560 (top 7%) |
| Sharpe ratio, 5 years | 0.09 | 1,361 of 1,560 (top 88%) |
| Worst decline, past 10 years | −17.0% | 77 of 951 (top 9%) |

### What has beaten VTEB on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- 62 ETFs worth at least $500 million sit in the green region: each earned more than VTEB over the past 5 years with smaller price swings. That is 2% of the 3,633 screened. Few investments beat it on both counts.
- Among those with at least half VTEB's swings, FLRT has the best return for its risk: 6.0% a year at 2.3% volatility, 43% less than VTEB's 4.1%, and a Sharpe ratio (return above cash per unit of volatility) of 2.55 against 0.09 for VTEB. BALT earned the most, 6.3% a year, while still swinging less than VTEB (3.3% against 4.1%).
- Among VTEB's popular alternatives, SUB is in the region. SUB earned 1.4% a year against 0.3% a year for VTEB, at 1.7% volatility, 58% less than VTEB's 4.1%.

### Is there a better investment than VTEB?

The table below lists investments that beat VTEB over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes, and, for funds, the same exposure at a lower expense ratio.

- Among VTEB's popular alternatives, SUB earned more than VTEB with less volatility over the past 5 years: 1.4% a year at 1.7% volatility, against 0.3% a year at 4.1%.
- Looking beyond its popular alternatives, SGOV (treasury bonds) and NEAR (short-term bonds) earned more than VTEB with less volatility over the past 5 years. SGOV returned 3.8% a year at 0.3% volatility, against 0.3% a year at 4.1%.
- Few investments have done better on both counts: only 62 of the 3,633 stocks and funds worth at least $500 million earned more than VTEB with less volatility over the past 5 years, among them SGOV, VTIP and BSV.

The 15 strongest of 62 investments that beat VTEB over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with VTEB | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| VTEB: Vanguard Tax-Exempt Bond ETF (this page) |  | +0.3% | 4.1% | 0.09 | −17.0% | +18.6% |  |  |
| JAAA: Janus Henderson AAA CLO ETF | CLO Bonds | +5.1% | 1.7% | 2.98 | −2.6% | — | 0.25 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [SGOV](https://easycompare.io/research/sgov): iShares 0-3 Month Treasury Bond ETF | Treasury Bonds | +3.8% | 0.3% | 13.25 | −0.3% | — | 0.27 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| BALT: Innovator Defined Wealth Shield ETF | Crypto | +6.3% | 3.3% | 1.85 | −4.9% | — | 0.65 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| VNLA: Janus Henderson Short Duration Income ETF | Bonds | +4.0% | 1.1% | 3.77 | −4.5% | — | 0.60 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| NEAR: iShares Short Duration Bond Active ETF | Short-Term Bonds | +3.9% | 1.4% | 2.71 | −9.6% | +31.8% | 0.60 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| TBUX: T. Rowe Price Ultra Short-Term Bond ETF | Bonds | +4.1% | 1.1% | 3.85 | −1.8% | — | 0.60 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| RAVI: Northern Trust Ultra-Short Fixed Income ETF | Bonds | +3.8% | 1.4% | 2.61 | −3.7% | +30.8% | 0.48 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| USTB: VictoryShares Short-Term Bond ETF | Bonds | +3.6% | 2.0% | 1.73 | −5.3% | — | 0.80 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| MEAR: iShares Short Maturity Municipal Bond Active ETF | Bonds | +2.4% | 1.0% | 2.37 | −2.7% | +19.3% | 0.77 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| LMBS: First Trust Low Duration Opportunities ETF | Mortgage-Backed Securities | +3.0% | 2.6% | 1.14 | −6.5% | +25.6% | 0.80 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [VTIP](https://easycompare.io/research/vtip): Vanguard Short-Term Inflation-Protected Securities ETF | Treasury Bonds | +2.7% | 2.9% | 0.94 | −6.3% | +32.7% | 0.61 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| SPSB: State Street SPDR Portfolio Short Term Corporate Bond ETF | Investment Grade Bonds | +2.8% | 2.0% | 1.38 | −11.8% | +29.2% | 0.83 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| FLUD: Franklin Ultra Short Bond ETF | Bonds | +3.9% | 1.4% | 2.74 | −1.7% | — | 0.42 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| SCHO: Schwab Short-Term U.S. Treasury ETF | Treasury Bonds | +2.0% | 2.0% | 0.96 | −5.7% | +18.9% | 0.72 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| LDUR: PIMCO Enhanced Low Duration Active Exchange-Traded Fund | Bonds | +2.4% | 2.1% | 1.13 | −8.7% | +26.7% | 0.70 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |

## VTEB against its popular alternatives

The investments people most often weigh against VTEB, compared period by period and year by year.

### How do VTEB's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- 11 of the 18 popular alternatives earned less than VTEB over the past 5 years while swinging more, the weaker corner of the map.
- Four of the 18 popular alternatives, led by SUB, MUNI and SHM, were both more rewarding and calmer than VTEB over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, VTEB returned 0.3% a year, less than the S&P 500's 12.7%, with lower volatility (4.1% against 17.1%).

### Has VTEB consistently beaten its popular alternatives?

This section compares VTEB with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- MUNI outperformed VTEB in every long-term period and in all but one short-term period, the most consistent record in the group.
- Only one of the 24 popular alternatives, MUNI, outperformed VTEB in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- SUB, SHM and MUNI earned more for the risk they took than VTEB (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of VTEB | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| VTEB: Vanguard Tax-Exempt Bond ETF (this page) | −1.8% | +11.5% | +1.4% | +18.6% |  |  | 0.09 |
| MUNI: PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund | −1.0% | +12.6% | +4.1% | +20.4% | 4/5 short-term, 3/3 long-term | all-weather | 0.25 |
| LQD: iShares iBoxx $ Investment Grade Corporate Bond ETF | −3.9% | +19.7% | −4.3% | +20.5% | 1/5 short-term, 2/3 long-term |  | -0.06 |
| JMUB: JPMorgan Municipal ETF | −1.4% | +12.3% | +3.2% | — | 1/5 short-term, 2/3 long-term |  | 0.20 |
| HYMB: State Street SPDR Nuveen ICE High Yield Municipal Bond ETF | −2.3% | +16.3% | −2.6% | +19.4% | 0/5 short-term, 2/3 long-term |  | -0.04 |
| MINO: PIMCO Municipal Income Opportunities Active Exchange-Traded Fund | −1.5% | +15.1% | +4.2% | — | 0/5 short-term, 2/3 long-term |  | 0.20 |
| SUB: iShares Short-Term National Muni Bond ETF | +1.4% | +9.8% | +7.3% | +15.6% | 5/5 short-term, 1/3 long-term |  | 0.85 |
| SHM: State Street SPDR Nuveen ICE Short Term Municipal Bond ETF | +0.5% | +9.4% | +4.0% | +11.8% | 4/5 short-term, 1/3 long-term |  | 0.38 |
| [AGG](https://easycompare.io/research/agg): iShares Core U.S. Aggregate Bond ETF | −1.9% | +16.2% | −1.5% | +13.3% | 3/5 short-term, 1/3 long-term |  | -0.02 |
| HYD: VanEck High Yield Muni ETF | −0.6% | +15.7% | −3.4% | +16.7% | 2/5 short-term, 1/3 long-term |  | -0.07 |
| [BND](https://easycompare.io/research/bnd): Vanguard Total Bond Market ETF | −2.1% | +15.7% | −1.8% | +13.2% | 2/5 short-term, 1/3 long-term |  | -0.03 |
| SPMB: State Street SPDR Portfolio Mortgage Backed Bond ETF | −1.7% | +18.8% | −0.6% | +9.3% | 2/5 short-term, 1/3 long-term |  | 0.02 |
| ITM: VanEck Intermediate Muni ETF | −2.0% | +12.1% | −0.4% | +16.6% | 1/5 short-term, 1/3 long-term |  | 0.00 |
| [IEF](https://easycompare.io/research/ief): iShares 7-10 Year Treasury Bond ETF | −4.1% | +12.4% | −8.0% | +3.0% | 1/5 short-term, 1/3 long-term |  | -0.18 |
| MLN: VanEck Long Muni ETF | −3.3% | +13.4% | −8.6% | +10.6% | 0/5 short-term, 1/3 long-term |  | -0.20 |
| JMHI: JPMorgan High Yield Municipal ETF | −2.0% | +18.0% | — | — | 0/5 short-term, 1/3 long-term |  | — |
| TAXF: American Century Diversified Municipal Bond ETF | −1.8% | +12.5% | +1.7% | — | 0/5 short-term, 1/3 long-term |  | 0.10 |
| DFNM: Dimensional - National Municipal Bond ETF | −0.4% | +9.8% | — | — | 5/5 short-term, 0/3 long-term |  | — |
| VTEI: Vanguard Intermediate-Term Tax-Exempt Bond ETF | −1.1% | — | — | — | 3/5 short-term, 0/3 long-term |  | — |
| [MUB](https://easycompare.io/research/mub): iShares National Muni Bond ETF | −1.7% | +10.8% | +1.5% | +17.8% | 0/5 short-term, 0/3 long-term |  | 0.09 |
| PZA: Invesco National AMT-Free Municipal Bond ETF | −4.4% | +9.6% | −5.7% | +13.0% | 0/5 short-term, 0/3 long-term |  | -0.16 |
| TFI: State Street SPDR Nuveen ICE Municipal Bond ETF | −2.3% | +10.3% | −3.3% | +11.9% | 0/5 short-term, 0/3 long-term |  | -0.13 |
| MUST: Columbia Multi-Sector Municipal Income ETF | −2.9% | +11.1% | −0.4% | — | 0/5 short-term, 0/3 long-term |  | 0.01 |
| SCMB: Schwab Municipal Bond ETF | −2.0% | +10.8% | — | — | 0/5 short-term, 0/3 long-term |  | — |
| VTEC: Vanguard California Tax-Exempt Bond ETF | −1.9% | — | — | — | 0/5 short-term, 0/3 long-term |  | — |

### How did VTEB do year by year?

This table shows each investment's total return in every full calendar year since 2016, along with where VTEB ranked among its popular alternatives each year.

- VTEB finished ahead of the S&P 500 in two of its ten full calendar years, and behind it in each of the last three.
- Among its popular alternatives, LQD came out ahead of VTEB most often, in six of the ten years both traded.
- Ranked against its popular alternatives each year, VTEB finished in the top quarter in no of ten years and in the bottom quarter in no. In 2025, it ranked 15 of 21.

| Year | VTEB | SPY |
| --- | --- | --- |
| 2025 | +3.7% | +17.7% |
| 2024 | +1.3% | +24.9% |
| 2023 | +6.1% | +26.2% |
| 2022 | −8.0% | −18.2% |
| 2021 | +1.1% | +28.7% |
| 2020 | +5.2% | +18.3% |
| 2019 | +7.3% | +31.2% |
| 2018 | +1.0% | −4.6% |
| 2017 | +4.9% | +21.7% |
| 2016 | +0.2% | +12.0% |

## Risk and diversification

How VTEB has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were VTEB's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In all four of VTEB's worst declines, the S&P 500 held up better over the same dates.
- The slowest recovery came after VTEB fell 12.7% from July 2021 to October 2022; it did not regain that peak until December 2024, two years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −17.0% | March 9, 2020 | March 19, 2020 | July 30, 2020 | −12.3% | Covid crash |
| −12.7% | July 22, 2021 | October 25, 2022 | December 4, 2024 | −10.0% | 2022 bear market |
| −6.6% | July 6, 2026 | September 29, 2026 | not yet | +2.0% |  |
| −5.8% | July 5, 2016 | December 1, 2016 | August 23, 2017 | +5.9% |  |

### How did VTEB do in stock market crashes?

This section measures how far VTEB, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- VTEB fell less than the S&P 500 in all five crashes it has traded through. The clearest case was the late-2018 sell-off, when VTEB fell 0.9% and the S&P 500 fell 19.3%.
- Among its popular alternatives, JMUB held up best, falling less than VTEB in two of the three crashes they both traded through.
- VTEB began trading after the 2008 financial crisis, but five of its popular alternatives lived through it. The mildest fall among them was IEF's 6.2%, against 55.2% for the S&P 500.

| Crash | Dates | VTEB fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | not trading | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | not trading | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | not trading | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | not trading | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | not trading | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −0.2% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −0.9% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −17.0% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −11.3% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | 0.0% | −3.4% |

### How closely does VTEB move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- Over the past 10 years, VTEB captured 14% of the S&P 500's gains in rising months and 19% of its losses in falling months, with a beta of 0.15. Its share of the market's losses was slightly larger than its share of the gains.
- Only SUB, MUNI and SHM had a higher capture ratio (upside capture divided by downside capture) than VTEB's 0.76, out of 14 popular alternatives with the same record.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| VTEB: Vanguard Tax-Exempt Bond ETF (this page) | 14.0% | 19.0% | 0.15 |
| MUNI: PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund | 13.0% | 15.0% | 0.13 |
| LQD: iShares iBoxx $ Investment Grade Corporate Bond ETF | 25.0% | 39.0% | 0.33 |
| HYMB: State Street SPDR Nuveen ICE High Yield Municipal Bond ETF | 21.0% | 31.0% | 0.25 |
| SUB: iShares Short-Term National Muni Bond ETF | 7.0% | 5.0% | 0.05 |
| SHM: State Street SPDR Nuveen ICE Short Term Municipal Bond ETF | 8.0% | 9.0% | 0.08 |
| [AGG](https://easycompare.io/research/agg): iShares Core U.S. Aggregate Bond ETF | 12.0% | 17.0% | 0.14 |
| HYD: VanEck High Yield Muni ETF | 24.0% | 40.0% | 0.35 |
| SPMB: State Street SPDR Portfolio Mortgage Backed Bond ETF | 12.0% | 20.0% | 0.14 |
| ITM: VanEck Intermediate Muni ETF | 15.0% | 22.0% | 0.17 |
| [IEF](https://easycompare.io/research/ief): iShares 7-10 Year Treasury Bond ETF | 7.0% | 14.0% | 0.08 |
| MLN: VanEck Long Muni ETF | 19.0% | 34.0% | 0.26 |
| [MUB](https://easycompare.io/research/mub): iShares National Muni Bond ETF | 14.0% | 18.0% | 0.14 |
| PZA: Invesco National AMT-Free Municipal Bond ETF | 18.0% | 29.0% | 0.22 |
| TFI: State Street SPDR Nuveen ICE Municipal Bond ETF | 15.0% | 24.0% | 0.18 |

### What diversifies VTEB?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in VTEB into DBMF would have cut the portfolio's volatility by 30% over the past 5 years and raised its annual return (-0.1% for VTEB alone, +2.1% for the mix).
- Among large ETFs, DXJ, EMLP and HDV have moved largely independently of VTEB over the past 5 years, with correlations of 0.46 or lower, and each still earned a positive 5-year return.
- In 2022, the one year VTEB lost money (-8.0%), DBMF returned +21.6%.

| Investment | Correlation with VTEB | 5Y return | Volatility | Sharpe | Rose in VTEB's 1 down years |
| --- | --- | --- | --- | --- | --- |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.30 | +225% | 19.1% | 1.34 | 1 of 1 |
| EMLP: First Trust North American Energy Infrastructure Fund | 0.46 | +101% | 14.5% | 1.04 | 1 of 1 |
| HDV: iShares Core High Dividend ETF | 0.44 | +83.3% | 13.0% | 1.00 | 1 of 1 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.37 | +126% | 18.9% | 0.96 | 0 of 1 |
| SPMO: Invesco S&P 500 Momentum ETF | 0.44 | +136% | 20.8% | 0.93 | 0 of 1 |
| [XLE](https://easycompare.io/research/xle): State Street Energy Select Sector SPDR ETF | 0.05 | +177% | 25.5% | 0.93 | 1 of 1 |
| AMLP: Alerian MLP ETF | 0.21 | +111% | 18.9% | 0.89 | 1 of 1 |
| DBMF: iMGP DBi Managed Futures Strategy ETF | -0.49 | +59.7% | 12.4% | 0.82 | 1 of 1 |

## Common questions

### What was VTEB's worst drawdown?

VTEB's deepest decline since it began trading in 2015 was 17.0%, in March 2020. It took four months from the low to climb back to its old high. Because VTEB launched in August 2015, that record does not include the dot-com bust, the 2008 financial crisis or two other sell-offs.

### What were VTEB's best and worst years?

Over ten full calendar years, VTEB's best year was 2019, when it returned 7.3%. Its worst was 2022, with a return of -8.0%.

### Is there a better investment than VTEB?

Among VTEB's popular alternatives, SUB earned more than VTEB with less volatility over the past 5 years: 1.4% a year at 1.7% volatility, against 0.3% a year at 4.1%. Looking beyond its popular alternatives, SGOV (treasury bonds) and NEAR (short-term bonds) earned more than VTEB with less volatility over the past 5 years. SGOV returned 3.8% a year at 0.3% volatility, against 0.3% a year at 4.1%.

### Is VTEB more volatile than the S&P 500?

No. VTEB's volatility over the past 5 years was 4.1%, 24% of the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, VTEB's return lands within 4.1% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is VTEB's Sharpe ratio?

VTEB's Sharpe ratio over the past 5 years was 0.09, against 0.79 for the S&P 500, so VTEB earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is VTEB with the S&P 500?

Over the past 5 years, VTEB's monthly returns had a correlation of 0.64 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They often move together: some diversification next to an index fund, but not a cushion. In the table, the correlation column measures each option against VTEB instead: the lower it is, the more that option would diversify a VTEB holding.

### What are the best alternatives to VTEB?

Of the 24 popular alternatives we compared, one outperformed VTEB in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: MUNI.

### Did VTEB outperform the S&P 500?

VTEB finished ahead of the S&P 500 (SPY) in two of ten full calendar years. In 2025, it returned +3.7%, against +17.7% for the index.

### How did VTEB do in stock market crashes?

VTEB fell less than the S&P 500 (SPY) in five of the five major crashes it has traded through, and further in no. The clearest case was the late-2018 sell-off, when VTEB fell 0.9% and the S&P 500 fell 19.3%.

### What diversifies VTEB?

These had a low correlation with VTEB over the past 5 years and still earned a positive 5-year return: among large ETFs, DXJ (correlation 0.30), EMLP (correlation 0.46) and HDV (correlation 0.44); among large stocks, CAH (correlation 0.28), CLS (correlation 0.17) and FIX (correlation 0.26). A correlation near zero means the two have moved largely independently.

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## Explore further

- Full page with charts: https://easycompare.io/research/vteb
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against VTEB live: https://betterthanspy.com/?b=VTEB&utm_source=easycompare&utm_medium=research