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 #182 out of 458 tracked ETFs across all categories and has received an ETFValuer grade of C with a score of 63.6 out of 100. The fund trades at a price of $49.77 and manages $48.8 billion in assets, indicating significant investor adoption relative to its category peers. It offers a low-cost structure with an expense ratio of just 0.03% while providing a dividend yield of 3.34%. The substantial asset base suggests strong market confidence despite the fund's mid-tier ranking among the broader universe of tracked ETFs. This combination of low fees and high income potential positions the fund as a core holding for investors seeking municipal bond exposure. The current price and asset size reflect its status as a widely utilized vehicle within the municipal bond sector.

VTEB has demonstrated mixed performance across various time horizons, starting with a 1-day return of +0.16% followed by a 1-week decline of -0.36%. The fund recorded a 1-month loss of -1.29% before recovering slightly to a 3-month return of -0.56%. Over the half-year period, the fund posted a +0.16% return, while year-to-date performance stands at +0.50%. The 1-year return shows a stronger trajectory at +6.02%, which extends to a 3-year annualized return of +9.78%. This pattern indicates a divergence where short-term fluctuations have been negative or flat, while longer-term results have shown positive accumulation. The acceleration from the 1-month loss to the 1-year gain suggests a recovery trend that has persisted over the multi-year period.

The fund carries a volatility label of Very Low and a beta of 0.95, suggesting it moves in close correlation with the broader market but with slightly less magnitude. A Sharpe ratio of 0.36 indicates the return generated per unit of risk taken is moderate relative to the risk-free rate. The maximum drawdown of -4.85% reflects the largest peak-to-trough decline experienced by the fund during the measured period. This combination of low volatility and a beta near unity implies the fund tends to experience smaller price swings than the general market during both up and down phases. The moderate Sharpe ratio suggests that while the fund has delivered positive returns, the risk-adjusted efficiency has been average compared to other investment opportunities. The limited drawdown size aligns with the Very Low volatility classification, pointing to a relatively stable price path for investors.

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: 4.65% (as of 2026-07-27) — 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): 18.67 (as of 2026-07-27) — 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 1.69% 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