VTEB — Vanguard Tax-Exempt Bond Index Fund ETF Shares

VTEB Price Performance — Growth of $10,000

Value of a $10,000 investment in VTEB over time, compared with SPY. Both lines are rebased to $10,000 on the first shared date. Based on total returns — prices are adjusted for dividends and splits, so this assumes distributions were reinvested. Hover or tap the chart for exact values.

VTEB Drawdown

The "underwater" chart: VTEB's decline from its highest prior value at each point in time. It shows how deep past losses ran and how long the fund took to recover to break-even.

Overview

The Vanguard Tax-Exempt Bond Index Fund ETF Shares (VTEB) operates within the Municipal Bonds category, which currently contains 10 ETFs tracked by ETFValuer. Issued by Vanguard, this fund holds an overall rank of #186 out of 458 tracked ETFs across all categories and has received an ETFValuer grade of C with a score of 63.7 out of 100. The fund trades at a price of $49.61 and manages $48.8 billion in assets, indicating significant investor adoption relative to its category peers. It offers a low expense ratio of 0.03% while providing a dividend yield of 3.34%. The substantial asset under management suggests strong market presence despite the fund's mid-tier overall ranking. This combination of low cost and high yield positions the ETF as a cost-effective vehicle for income-focused municipal bond exposure.

VTEB has demonstrated mixed performance across various time horizons, starting with a 1-day return of +0.20% followed by a 1-week decline of -1.04%. The fund recorded a 1-month return of -1.47% and a 3-month return of -0.84%, showing a slight recovery from the one-month low. Over the six-month period, the return was -0.05%, while year-to-date performance stands at +0.17%. Longer-term results show more positive momentum, with a 1-year return of +5.72% and a 3-year annualized return of +8.96%. This pattern indicates a divergence where short-term periods have been negative or flat, while the 1-year and 3-year horizons reflect positive growth.

The fund carries a volatility label of Very Low and a beta of 0.95, suggesting it moves slightly less than the broader market while maintaining a stable price profile. A Sharpe ratio of 0.26 indicates the risk-adjusted returns have been modest relative to the volatility experienced. The maximum drawdown of -5.51% represents the largest peak-to-trough decline observed during the measured period. This combination of low volatility and a beta below 1.0 implies the fund tends to experience smaller swings than the general market in both up and down conditions. However, the relatively low Sharpe ratio suggests that the returns generated have not been particularly high compensation for the risks taken. The maximum drawdown figure confirms that while declines are contained, the fund is not immune to negative market movements.

AI-generated summary based on the data on this page.

VTEB Top Holdings

Holdings as of 2026-04-30 per the fund's most recent SEC N-PORT-P filing. Top 10 holdings make up 2.0% of net assets — a rough gauge of concentration risk (the higher this figure, the more the fund's return depends on a handful of names). To see how VTEB's holdings overlap with other ETFs you own or are considering, check the Stock Overlap tool.

Which Funds Overlap With VTEB

Holding two funds that own the same companies adds cost and complexity without adding much diversification. These tracked ETFs share the most names with VTEB's top 10 — SHM overlaps most, holding 5 of the same companies as VTEB's top 10 (0.6% of VTEB's assets).

Compares the top 10 reported holdings of each fund, so it's a floor on true overlap — two S&P 500 trackers overlap ~100% even when only 10 names are listed. Use the Stock Overlap tool to search by individual company.

Market Backdrop

10-Year Treasury Yield: 4.71% (as of 2026-07-23) — The yield on 10-year US Treasury bonds — the standard "risk-free rate" benchmark used to contextualize this fund’s Sharpe ratio and returns.

CBOE Volatility Index (VIX): 18.70 (as of 2026-07-23) — A real-time gauge of expected S&P 500 volatility over the next 30 days — useful context for this fund’s own volatility label.

Federal Funds Rate: 3.63% (as of 2026-06-01) — The Federal Reserve’s target policy rate, which anchors short-term borrowing costs across the economy.

VTEB Liquidity, Domicile & Tax Treatment

Liquidity: Quoted bid/ask spread is 0.10% and average daily volume is 7.2M/day. Tighter spreads and higher volume mean lower round-trip trading costs; this is a live-market snapshot and can widen during volatile sessions. AUM of $48.8B provides ample scale, supporting tight spreads and issuer commitment to keep the fund open.

Domicile & tax treatment: VTEB is a US-domiciled, SEC-registered ('40 Act) exchange-traded fund. Dividends and capital gains distributions are reported to US investors on Form 1099-DIV, and the fund is not subject to the PFIC reporting or UCITS-specific rules that apply to Irish- or Luxembourg-domiciled funds. Non-US investors should note that US-domiciled ETFs are generally subject to 30% US withholding tax on dividends (unless reduced by treaty) and to US estate tax exposure on the position — Irish-domiciled UCITS ETFs tracking the same index often avoid both, which is why non-US residents frequently prefer the UCITS equivalent where one exists. This is general information, not tax advice — consult a tax professional for your situation.

VTEB Performance History

How VTEB Compares to Other Municipal Bonds ETFs