Vanguard Tax-Exempt Bond ETF (VTEB) Performance
VTEB total return
Distributions reinvested · as of Oct 23, 2026- YTD
- −1.0% since Dec 31, 2025
- 1 year
- −0.7% total return
- 5 years
- +0.5% a year
- 10 years
- +1.8% a year
- Since first price
- +2.1% a year since 2015
VTEB trailing returns vs AGG, TLT, SPY
| Period | VTEB total return | Price only | U.S. bonds (AGG) | 20+ yr Treasuries (TLT) | S&P 500 (SPY) |
|---|---|---|---|---|---|
| 1 month | +1.5% | +1.3% | +0.9% | +1.5% | −1.0% |
| 3 months | −1.2% | −2.0% | −0.4% | −1.0% | +3.2% |
| 6 months | −2.2% | −3.8% | −1.5% | −3.8% | +7.8% |
| YTD | −1.0% | −3.5% | −1.0% | −3.4% | +12.3% |
| 1 year | −0.7% | −4.0% | −1.1% | −6.9% | +14.4% |
| 3 years | +12.7%+4.1%/yr | +2.2% | +16.6%+5.2%/yr | +9.7%+3.1%/yr | +87.4%+23.3%/yr |
| 5 years | +2.6%+0.5%/yr | −11.1% | −0.8%−0.2%/yr | −32.5%−7.6%/yr | +79.3%+12.4%/yr |
| 10 years | +19.9%+1.8%/yr | −6.3% | +14.0%+1.3%/yr | −18.7%−2.0%/yr | +315.9%+15.3%/yr |
| Since inceptionAug 25, 2015 | +26.1%+2.1%/yr | −3.1% | — | — | — |
Total return from adjusted closes (distributions reinvested, before tax). Periods of 3 years or more are also shown annualized. Price only excludes distributions.
Growth of $10,000: VTEB vs AGG
From Aug 25, 2015: VTEB grew to $12,614, AGG to $11,990.
Year-end values with distributions reinvested, no taxes or trading costs. Start: first common trading day of both funds.
VTEB returns by calendar year
9 of 10 full years positive. Best 2019 (+7.3%), worst 2022 (−8.0%). 2026 is year to date.
VTEB annual returns table
| Year | VTEB | Largest drop | AGG | TLT | SPY |
|---|---|---|---|---|---|
| 2026YTD | −1.0% | −6.6% | −1.0% | −3.4% | +12.3% |
| 2025 | +3.7% | −4.5% | +7.2% | +4.3% | +17.7% |
| 2024 | +1.3% | −2.3% | +1.3% | −8.1% | +24.9% |
| 2023 | +6.2% | −5.9% | +5.7% | +2.8% | +26.2% |
| 2022 | −8.0% | −12.2% | −13.0% | −31.2% | −18.2% |
| 2021 | +1.1% | −2.0% | −1.8% | −4.6% | +28.7% |
| 2020 | +5.2% | −17.0% | +7.5% | +18.2% | +18.3% |
| 2019 | +7.3% | −1.6% | +8.5% | +14.1% | +31.2% |
| 2018 | +1.1% | −1.9% | +0.1% | −1.6% | −4.6% |
| 2017 | +4.9% | −1.1% | +3.6% | +9.2% | +21.7% |
| 2016 | +0.2% | −5.8% | +2.4% | +1.2% | +12.0% |
Largest drop = deepest fall from a high within that calendar year.
Calendar-year return vs largest drop within the year
Most years include a sizable fall at some point even when the year ends higher.
VTEB largest drawdowns
Now 3.2% below the high| Peak | Decline | Bottom | Recovered | Fall | Underwater |
|---|---|---|---|---|---|
| Mar 9, 2020 | −17.0% | Mar 19, 2020 | Jul 30, 2020 | 10 days | 5 months |
| Jul 22, 2021 | −12.6% | Oct 25, 2022 | Dec 4, 2024 | 1.3 years | 3.4 years |
| Jul 6, 2026 | −6.6% | Sep 29, 2026 | not yet | 3 months | 4 months so far |
| Jul 5, 2016 | −5.8% | Dec 1, 2016 | Aug 23, 2017 | 5 months | 1.1 years |
Declines from a closing high (distributions reinvested) of 5% or more. Underwater = time from the peak until the old high was regained.
VTEB risk statistics
| Statistic | 3 years | 5 years | 10 years | Since 2015 |
|---|---|---|---|---|
| Annualized return | +2.8% | −0.1% | +1.5% | +1.9% |
| Volatility (annualized) | 5.6% | 6.4% | 5.3% | 5.1% |
| Sharpe ratio | -0.27 | -0.55 | -0.13 | -0.01 |
| Sortino ratio | -0.38 | -0.74 | -0.17 | -0.02 |
| Best month | +5.7% | +5.7% | +5.7% | +5.7% |
| Worst month | −3.7% | −3.7% | −3.8% | −3.8% |
| Best 12 months | +9.6% | +9.6% | +9.6% | +9.6% |
| Worst 12 months | −2.1% | −11.5% | −11.5% | −11.5% |
| Positive months | 58% | 50% | 60% | 63% |
| Beta vs S&P 500 | 0.27 | 0.26 | 0.15 | — |
| Correlation with S&P 500 | 0.61 | 0.64 | 0.44 | — |
From monthly total returns. Sharpe and Sortino use 1–3 month T-bills (BIL) as the risk-free rate, so they need history from 2007 on.
VTEB rolling returns
| Holding period | Periods | Worst | Median | Best | Positive |
|---|---|---|---|---|---|
| 1-year | 123 | −11.5% | +2.6% | +9.6% | 80% |
| 3-year (a year) | 99 | −2.3% | +2.5% | +5.2% | 74% |
| 5-year (a year) | 75 | −0.1% | +1.4% | +4.2% | 99% |
| 10-year (a year) | 15 | +1.5% | +2.1% | +2.3% | 100% |
Every holding period starting at a month-end since 2015. Returns for 3 years and longer are annualized.
VTEB performance overview
Vanguard Tax-Exempt Bond ETF (VTEB) returned −0.7% over the past year and +1.8% a year over ten years, with distributions reinvested. Since its first recorded price in 2015 it has returned +2.1% a year, turning $10,000 into about $12,614. Over the same year U.S. bonds (AGG) returned −1.1%.
The deepest decline was −17.0%, from Mar 9, 2020 to Mar 19, 2020, and it took 4 months to get back to the old high. VTEB finished 9 of its 10 full calendar years with a gain; the best year was 2019 (+7.3%) and the worst 2022 (−8.0%). Volatility has been 5.1% a year.
Related: VTEB chart, VTEB dividends, VTEB bond profile. See the VTEB overview for the latest quote and fund facts.
VTEB performance FAQ
What is the VTEB return over the past year?
VTEB returned −0.7% over the 12 months to October 23, 2026, including reinvested distributions. On price alone it fell 4.0%.
What is the average annual return of VTEB?
VTEB has returned +0.5% a year over 5 years, +1.8% a year over 10 years, +2.1% a year since August 25, 2015 (total return, distributions reinvested).
How much would $10,000 invested in VTEB be worth?
$10,000 invested in VTEB at its first recorded close on August 25, 2015 would be worth about $12,614 on October 23, 2026 with distributions reinvested.
What was the worst year for VTEB?
The worst calendar year was 2022, with a total return of −8.0%. The best was 2019 at +7.3%.
What is the biggest drawdown of VTEB?
The largest peak-to-trough decline was −17.0% between March 9, 2020 and March 19, 2020. It recovered to the old high on July 30, 2020, 4 months after the bottom.
How volatile is VTEB?
Over the past 3 years VTEB had an annualized volatility of 5.6% and a Sharpe ratio of -0.27 (excess return over 1–3 month T-bills per unit of risk).