VTEB — Vanguard Tax-Exempt Bond Index Fund ETF Shares
Municipal Bonds Ranked #270 of 458 tracked ETFs · Issued by Vanguard
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.
What If You'd Invested in VTEB?
See what a lump sum in VTEB would have grown to, with the option to add a regular monthly contribution on top. Figures use total returns — dividends are assumed reinvested.
Past performance doesn't predict future results. Assumes contributions on the first trading day of each month, no trading costs or taxes, and reinvested distributions. History is limited to the range published in the site's daily return data.
Overview
Vanguard Tax-Exempt Bond Index Fund ETF Shares (VTEB) is a municipal bond fund issued by Vanguard with $51.7 billion in assets under management. It holds a C grade (57.2/100) and ranks first among 10 funds in its category, while sitting at #270 of 458 tracked ETFs overall. The fund’s 0.03% expense ratio is significantly lower than the category median of 0.19%, and its 3.50% dividend yield exceeds the median of 3.40%. Despite the high yield, the top ten holdings represent only 1.5% of assets, with the largest position being the Vanguard Municipal Cash Management Fund at 0.7%.
The fund’s price of $48.51 sits at 38.1% of its 52-week range, reflecting a recent trajectory that diverges from its longer-term history. Short-term returns show a +2.01% gain over one month, contrasting with a -1.52% decline over three months and a -0.79% drop over the past year. This one-year performance trails the category median of -0.34%, while the three-year return stands at +12.92%. The ETFValuer grade has remained unchanged at C for the last 35 tracked days, and price history is available for only 3.0 years.
With a volatility of 3.58% annualized, the fund is labeled as having Very Low risk, supported by a beta of 0.95 indicating movement slightly below the market. The Sharpe ratio of -1.62 suggests poor risk-adjusted returns relative to the risk-free rate, accompanied by a maximum drawdown of -6.59%. Liquidity is robust, with an average daily volume of 20,456,898 shares, ensuring ease of trading. These metrics collectively describe a fund that has experienced modest price declines with low volatility and high trading activity.
AI-generated summary based on the data on this page.
VTEB Top Holdings
| # | Holding | % of Net Assets | Value |
|---|---|---|---|
| 1 | Vanguard Cmt Funds-Vanguard Municipal Cash Management Fund | 0.67% | $326M |
| 2 | City of New York NY | 0.12% | $57M |
| 3 | University of California | 0.11% | $54M |
| 4 | State of Idaho | 0.10% | $51M |
| 5 | State of California | 0.10% | $49M |
| 6 | State of Maryland | 0.09% | $46M |
| 7 | New York State Thruway Authority | 0.09% | $44M |
| 8 | Triborough Bridge & Tunnel Authority | 0.09% | $41M |
| 9 | Dallas Independent School District | 0.08% | $40M |
| 10 | Ohio Water Development Authority Water Pollution Control Loan Fund | 0.08% | $39M |
Holdings as of 2026-07-31 per the fund's most recent SEC N-PORT-P filing. Top 10 holdings make up 1.5% 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 — TFI overlaps most, holding 5 of the same companies as VTEB's top 10 (0.5% of VTEB's assets).
| ETF | Name | Shared Companies | VTEB Weight | Examples |
|---|---|---|---|---|
| TFI | State Street SPDR Nuveen ICE Municipal Bond ETF | 5 | 0.5% | City of New York NY, State of California, University of California… |
| SHM | State Street SPDR Nuveen ICE Short Term Municipal Bond ETF | 4 | 0.4% | State of California, City of New York NY, University of California… |
| SUB | iShares Short-Term National Muni Bond ETF | 3 | 0.3% | State of California, University of California, Triborough Bridge & Tunnel Authority |
| MUB | iShares National Muni Bond ETF | 2 | 0.2% | New York State Thruway Authority, State of California |
| ITM | VanEck Intermediate Muni ETF | 1 | 0.1% | State of California |
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: 4.96% (as of 2026-10-22) — 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): 19.03 (as of 2026-10-22) — 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: 3.75% (as of 2026-09-01) — The Federal Reserve’s target policy rate, which anchors short-term borrowing costs across the economy.
What VTEB's Fees Cost You
VTEB charges an expense ratio of 0.03% a year, deducted automatically from the fund's value. Small percentages compound into real money — adjust the figures below to see the impact on your own numbers.
Assumes a constant gross return and no additional contributions — a simplification, but it isolates exactly what the expense ratio costs. Try the full fee calculator to model contributions and compare any two funds.
VTEB Dividend Income Estimator
VTEB currently yields 3.50%. Enter an amount to see the income that implies, or set a monthly income target to see the investment it would take.
Based on the fund's current trailing yield, which varies with price and distributions — treat it as an estimate, not a guarantee. Yields are not adjusted for tax.
VTEB Liquidity, Domicile & Tax Treatment
Liquidity: Average daily volume is 20.5M/day. Higher volume and a larger fund generally mean lower round-trip trading costs. AUM of $51.7B 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
| Period | Return |
|---|---|
| 1-Day | +0.21% |
| 1-Week | +1.06% |
| 1-Month | +2.01% |
| 3-Month | -1.52% |
| 6-Month | -2.23% |
| YTD | -1.20% |
| 1-Year | -0.79% |
| 3-Year | +12.92% |
How VTEB Compares to Other Municipal Bonds ETFs
| Rank | Grade | Ticker | Name | 1-Year | Exp. Ratio | AUM |
|---|---|---|---|---|---|---|
| #270 | C |
VTEB | Vanguard Tax-Exempt Bond Index Fund ETF Shares | -0.79% | 0.03% | $51.7B |
| #274 | C |
MUB | iShares National Muni Bond ETF | -0.74% | 0.05% | $46.6B |
| #302 | C |
SUB | iShares Short-Term National Muni Bond ETF | +1.93% | 0.07% | $11.9B |
| #334 | C |
HYD | VanEck High Yield Muni ETF | +0.46% | 0.32% | $3.89B |
| #354 | D |
SHM | State Street SPDR Nuveen ICE Short Term Municipal Bond ETF | +1.18% | 0.2% | $3.46B |
| #356 | C |
SMB | VanEck Short Muni ETF | +1.85% | 0.07% | $318M |
| #363 | D |
ITM | VanEck Intermediate Muni ETF | -0.69% | 0.18% | $2.06B |
| #372 | D |
TFI | State Street SPDR Nuveen ICE Municipal Bond ETF | -1.16% | 0.23% | $2.82B |
| #375 | D |
MMIT | NYLI MacKay Muni Intermediate ETF | +0.01% | 0.3% | $1.44B |
| #380 | D |
PZA | Invesco National AMT-Free Municipal Bond ETF | -3.09% | 0.28% | $4.02B |