VTEB vs VTI: Performance, Holdings, Fees & Risk
VTEB and VTI are ETFs, but they can differ materially in exposure, yield, fees and risk. VTEB is Vanguard Tax-Exempt Bond ETF, while VTI is Vanguard Morningstar Total Stock Market ETF. VTEB is broader by holdings count, with 10,660 positions versus 3,524 for VTI. VTI is more concentrated at the top, based on top-10 holdings weight.
What is the main difference between VTEB and VTI?
VTEB puts 98% of its assets in Municipal, while VTI spreads across 11 sectors with none above 38%.
| Metric | VTEB | VTI |
|---|---|---|
| Fund | ||
| Expense ratio | 0.03% | 0.03% |
| Holdings | 10,660 | 3,524 |
| Top-10 concentration | 1.4% | 33.2% |
| Distribution yieldTrailing 12 months | 3.54% | 1.05% |
| Average volume | 15,977,970 | 3,096,956 |
| Performance | ||
| 1Y return | -5% | +15.8% |
| YTD return | -4.6% | +12.5% |
| 5Y annualized returnTotal return, distributions reinvested | +0.3% | +11.4% |
| Risk | ||
| Annualized volatility | 3.6% | 13% |
| Max drawdown (1Y) | -8.2% | -9.2% |
| Max drawdown (5Y)Total return, distributions reinvested | -12.3% | -25.4% |
| Beta | 0.09 | 1.02 |
| Sharpe ratio | -2.51 | 0.86 |
| Sortino ratio | -3.08 | 1.32 |
| AlgovestIQ | ||
| AIQ Score | 60/100 | 60/100 |
| AIQ Edge Score | 8/10 | 8/10 |
| Momentum | 56/100 | 51/100 |
| Risk Resilience | 90/100 | 86/100 |
AlgovestIQ AIQ Comparison
Vanguard Tax-Exempt Bond ETF vs Vanguard Morningstar Total Stock Market ETF
VTEB and VTI are effectively level
VTEB and VTI are effectively level on the AIQ Score; the factor table below shows where each one holds its advantage.
Vanguard Tax-Exempt Bond ETF
Vanguard Morningstar Total Stock Market ETF
The Algovestiq AIQ Score does not currently separate VTEB and VTI as of Oct 22, 2026. Both names are scored on the same 0–100 scale across Quality, Value, Momentum and Risk Resilience, and the factor table below shows where each one holds its advantage.
Compare Vanguard Tax-Exempt Bond ETF and Vanguard Morningstar Total Stock Market ETF across performance, expense ratio, dividend yield, drawdown, volatility and the Algovestiq AIQ Score.
VTEB vs VTI: which fits what
Each row is settled by a single measure. Where the gap is too small to matter it reads Similar, and no row decides the comparison as a whole.
| If you want | VTEB | VTI | Fits |
|---|---|---|---|
| Lower costExpense ratio | 0.03% | 0.03% | Similar |
| Broader diversificationNumber of holdings | 10,660 | 3,524 | VTEB |
| Lower concentrationWeight of the 10 largest holdings | 1.4% | 33.2% | VTEB |
| Higher incomeTrailing 12-month distribution yield | 3.54% | 1.05% | VTEB |
| Smaller drawdownsMax drawdown, 5 years | -12.3% | -25.4% | VTEB |
| Lower volatilityAnnualized volatility, 1 year | 3.6% | 13% | VTEB |
Similar means the gap is within 0.01 percentage points of expense ratio, 25% more holdings, 3 points of top-10 weight, 0.2 points of yield, 2 points of drawdown or 1 point of volatility. Past drawdowns and volatility describe the funds’ history, not their future.
Performance over time
Total return with distributions reinvested, from daily closes for both ETFs.
Total return comparison
Growth of $10,000, distributions reinvested
Split-adjusted closes; each distribution is reinvested at the close on its ex-dividend date. Taxes and trading costs are not modeled.
Compare VTEB and VTI against another ticker
Open a multi-ticker workspace without changing this focused pair page.
AIQ Factor Divergence
Where the two separate, on the four dimensions behind the AIQ Score. Bars read outward from a shared zero: further from the centre is a wider gap.
- Value36 vs 42VTI +6
- Momentum56 vs 51VTEB +5
- Risk Resilience90 vs 86VTEB +4
- Quality74 vs 74Even
Neither name separates cleanly on the covered dimensions.
What changed since the last close
Latest scored session 2026-10-20, compared against the prior scored session 2026-10-19.
Largest factor move: Momentum -3
No signal started or stopped since the prior session; its 6 active signals are unchanged.
Largest factor move: Momentum +4
No signal started or stopped since the prior session; its 5 active signals are unchanged.
VTEB's lead narrowed by 2 AIQ points in the latest session.
Deeper signal detail for each name lives on its own signals page — VTEB and VTI both carry a full feed there.
Fund facts, side by side
Two funds tracking overlapping universes are separated by cost and risk far more than by holdings. Those lead here.
| Measure | VTEB | VTI | Why it matters |
|---|---|---|---|
| Expense ratio | 0.03% | 0.03% | Lower is better — it compounds against you every year you hold. |
| Holdings | 10,660 | 3,524 | More holdings means broader diversification, not better returns. |
| Average volume | 15,977,970 | 3,096,956 | Liquidity — matters most if you trade size. |
| Annualized volatility | 3.6% | 13% | Lower is a steadier ride for the same exposure. |
| Max drawdown (1Y) | -8.2% | -9.2% | The worst peak-to-trough loss over the past year. |
| Sharpe ratio | -2.51 | 0.86 | Return per unit of risk. Higher is better. |
| Beta | 0.09 | 1.02 | Sensitivity to the broad market. Neither direction is better — it depends on the role in your portfolio. |
Where the exposure actually sits
Sector exposure for each fund, ordered by the size of the difference.
How much of the same holdings they own
VTEB and VTI share 0% of their weighted exposure across 0 common holdings.
10,659 holdings are unique to VTEB, and 3,499 holdings are unique to VTI. Owning both is genuinely additive — most of the capital sits in different securities.
VTI is the more concentrated of the two: its ten largest positions are 33.24% of the fund, against 1.36% for VTEB (3,524 holdings vs 10,660). Concentration cuts both ways — it is what drives outperformance when the top names work, and what makes the drawdown deeper when they do not.
What VTEB adds that VTI doesn’t
| Holding | VTEB | VTI |
|---|---|---|
| Vanguard Municipal Low Duration Fund 12/31/2049 | 0.5% | Not held |
| City of New York NY 5.00% 08/01/2034 | 0.12% | Not held |
| University of California 5.00% 05/15/2036 | 0.11% | Not held |
| State of Idaho 4.00% 06/30/2027 | 0.1% | Not held |
| State of California 5.25% 08/01/2032 | 0.1% | Not held |
| State of Maryland 5.00% 06/01/2038 | 0.09% | Not held |
What VTI adds that VTEB doesn’t
| Holding | VTI | VTEB |
|---|---|---|
| NVDANVIDIA Corp | 6.4% | Not held |
| AAPLApple Inc | 6.29% | Not held |
| MSFTMicrosoft Corp | 4.79% | Not held |
| AMZNAmazon.com Inc | 3.65% | Not held |
| GOOGLAlphabet Inc | 2.9% | Not held |
| AVGOBroadcom Inc | 2.56% | Not held |
Each list is a fund’s largest positions by weight that the other fund does not hold, or holds at less than half the weight.
AIQ Agreement Matrix
How each independent group of evidence reads the pair.
| Evidence group | Favors | Reading |
|---|---|---|
| AIQ Score | Even | 60 vs 60 |
| Fundamentals | Not covered | Not covered |
| Valuation | VTI | Value 36 vs 42 |
| Technicals | VTI | Price vs 50-day -0.9% vs 0.2%; vs 200-day -3.7% vs 5.3% |
| Risk Resilience | VTEB | Risk Resilience 90 vs 86 |
| Analyst expectations | Not covered | Not covered |
AIQ Decision Stability
The conclusion is sensitive to small changes. Treat the lead as provisional and watch the flip conditions below.
- The AIQ gap is narrow at 0 points. (argues the conclusion is provisional)
- Only 0 of 4 covered evidence groups agree. (argues the conclusion is provisional)
- The leader's advantage has been narrowing. (argues the conclusion is provisional)
How the comparison changed
120 daily snapshots · Jun 21 – Oct 20VTI lead: Weakening — the AIQ differential moved from 7 to 0 points over 30 sessions.
- Today
- Level
- 60 vs 60
- 7 sessions ago
- Level
- 59 vs 59
- 30 sessions ago
- VTI +7
- 53 vs 60
- 90 sessions ago
- VTI +11
- 55 vs 66
The lead changed hands once in this window, most recently on Jul 8 when VTI moved ahead of VTEB.
AIQ Signal Divergence
Only the signals that bear on the head-to-head. A conflicted name is carrying bullish and bearish rules at the same time — the technical evidence is not pointing one way.
1 bullish / 3 bearish / 2 neutral, conflicted
Only VTEB
- Bollinger Band Squeeze — neutral, volatility, short horizon
- Death Cross Active — bearish, trend, long horizon (2.88%)
- 52-Week Low Proximity — bearish, risk, long horizon (2.3%)
- Downtrend Structure Active — bearish, trend, long horizon
- MACD Bullish Crossover — bullish, momentum, short horizon
2 bullish / 1 bearish / 2 neutral, conflicted
Only VTI
- Golden Cross Active — bullish, trend, long horizon (5.66%)
- EMA Ribbon Compression — neutral, trend, medium horizon
- 52-Week High Proximity — bullish, risk, long horizon (1.7%)
- MACD Bearish Crossover — bearish, momentum, short horizon
Both carry 1 more signal that do not separate them: ATR Contraction - Coiling.
Price vs model alignment
Whether the latest session's price move confirms what the model did over the same session, or contradicts it.
Neither the price nor the AIQ Score moved enough in the latest session to confirm or contradict the other (price +0.08%, AIQ -1 points).
Price and the AIQ Score both moved up over the latest session (price +0.55%, AIQ +1 points).
The full evidence
Every number behind the verdict. The leader is called above each group so you are not left to solve it from the table.
Performance
VTI leads 4 of 6 windows| Metric | VTEB | VTI |
|---|---|---|
| 1 week (5 sessions) | 0.7% | -1.1% |
| 1 month (20 sessions) | -0.5% | -1.1% |
| 3 months (63 sessions) | -3.7% | 2.2% |
| 6 months (126 sessions) | -4.8% | 8.4% |
| Year to date | -4.6% | 12.5% |
| 1 year (252 sessions) | -5% | 15.8% |
Technicals
VTI has the stronger structure| Metric | VTEB | VTI |
|---|---|---|
| RSI (14) | 66.7 | 55.2 |
| ADX (14) | 35 | 13.4 |
| Price vs 50-day | -0.9% | 0.2% |
| Price vs 200-day | -3.7% | 5.3% |
| Volatility (1M, annualized) | 7.3% | 9.8% |
Risk
VTEB is the more resilient| Metric | VTEB | VTI |
|---|---|---|
| Beta | 0.09 | 1.02 |
| Sharpe ratio | -2.51 | 0.86 |
| Sortino ratio | -3.08 | 1.32 |
| Max drawdown | -8.2% | -9.2% |
| Current drawdown | -6.2% | -1.9% |
| Annualized volatility | 3.6% | 13% |
| Value at risk (95%) | -0.5% | -1.4% |
Straight answers
Short answers to the questions fund investors ask about this pair, from the figures above.
What is the difference between VTEB and VTI?
VTEB puts 98% of its assets in Municipal, while VTI spreads across 11 sectors with none above 38%.
How much do VTEB and VTI overlap?
VTEB and VTI share 0% of their weighted exposure across 0 common holdings. 10,659 holdings are unique to VTEB, and 3,499 holdings are unique to VTI. Owning both is genuinely additive — most of the capital sits in different securities.
Which ETF is more diversified, VTEB or VTI?
VTEB holds more positions: 10,660 versus 3,524 for VTI.
Which has the lower expense ratio?
Neither: both charge 0.03% a year.
Which ETF has the higher distribution yield?
VTEB, with a trailing 12-month distribution yield of 3.54% against 1.05% for VTI.
Which ETF has been more volatile?
VTI has been more volatile over the past year, at 13% annualized against 3.6% for VTEB.
Which ETF has had the smaller drawdown?
VTEB fell less from peak to trough over the past five years: -12.3% against -25.4% for VTI.
Compare VTEB and VTI with others
Continue your research
This page answers which of the two. These answer the questions on either side of it.
How this comparison is scored
The Algovestiq AIQ Score composites four factors — Quality, Value, Momentum and Risk, each carrying a fixed weight. Sentiment is reported separately as SentimentPulse and is not folded into the composite. Scores refresh every trading day, and this page regenerates from the latest snapshot rather than being written once.
The verdict names a leader, states how broadly six independent evidence groups agree, and rates how durable that conclusion is given the score gap, its recent trajectory and the current signal state on both names.
How to use side-by-side comparison →This comparison is informational and educational, not investment advice. AIQ scores update daily; re-check after earnings, guidance or macro data that materially changes either name’s factor profile.