Bond ETFs

VTEB:what it yields, how rates move it and what it holds

Vanguard Tax-Exempt Bond ETF. Portfolio as of July 31, 2026, from the fund's SEC filing (Form N-PORT).

US municipal. Bonds of US states and cities. Their interest is tax-free only for US taxpayers.

Yield to maturity (YTM)

4.15%

before the fund's costs

As of July 31, 2026, before the fund's costs.

If rates rise 1 pointestimated from its duration, 7.1 years: -7.1%
Investment gradeof the credit risk, BBB or better: 100%
Size10,592 positions: $48.5B

In a few words

VTEB holds 10,592 positions. 99% of the portfolio is bonds of US states and cities. On July 31, 2026, the bonds it holds had a yield to maturity (YTM) of 4.15% a year, before the fund's costs. Its duration is 7.1 years: if rates rise by 1 percentage point, its price falls about 7.1%. In 2022, when rates rose sharply, its total return was -8.2%.

Every ETF in US municipal

If rates change

A rough estimate, if rates moved at once and equally at every maturity.

7.1 years duration4.15% yield to maturity

Change in rates+1 point

▲ break-even

Price, at once

-7.1%

Over 12 months, with the yield

-2.9%

Ready-made moves

Change in rates	At once	12 months
	+7.1%	+11.2%
	+3.5%	+7.7%
	0.0%	+4.2%
	-3.5%	+0.6%
	-7.1%	-2.9%
	-14.2%	-10.0%

At a yield of 4.15% and a duration of 7.1 years, a rise in rates of about 0.59 points within the year would eat the whole year's yield.

Past returns

The ETF's total return, price change plus distributions, as the fund reports it to the SEC.

August 2019 – July 2026

Last 12 months

+5.2%

3 years, average per year

+2.9%

Worst 12 months

-11.3%

Largest fall from a peak

-12.4%

100 at the start 111.1 at the end, distributions reinvested

What it holds

Portfolio as of July 31, 2026: who issued the bonds, when they mature and the largest issuers.

10,592 positions1,146 issuers

Largest issuers

The 10 largest are 30.4% of the fund.

State of California5.26%

New York City Transitional Finance Authority Future Tax Secured Revenue5.05%

New York State Dormitory Authority4.46%

City of New York NY3.23%

New Jersey Transportation Trust Fund Authority2.38%

Commonwealth of Massachusetts2.36%

New York City Municipal Water Finance Authority2.03%

University of California2.01%

State of Illinois1.81%

State of Washington1.78%

When they mature

Up to 1 year3.4%

1 to 3 years7.4%

3 to 5 years7.6%

5 to 10 years18.9%

10 to 20 years31.0%

Over 20 years30.7%

Details

Issuer: States and cities, 98.9%
Positions: 10,592
Average coupon: 4.69%
Floating rate: 2.0%
In other currencies: 0.0%
Mortgage-backed: 0.0%
In default: 0.00%
Hard to value: 0.00%
Cash and cash funds: 0.7%

Maturities as stated on the bonds. Mortgage bonds, many corporate bonds and city bonds can be repaid early, so in practice they mature sooner.

Similar bond ETFs

Same kind as VTEB, nearest in rate sensitivity.

MUBiShares National Muni Bond ETF
If rates +1%-7.0%
VTECVanguard California Tax-Exempt Bond ETF
If rates +1%-6.9%
CMFiShares California Muni Bond ETF
If rates +1%-6.8%
SCMBSchwab Municipal Bond ETF
If rates +1%-6.6%
VCRMVanguard Core Tax-Exempt Bond ETF
If rates +1%-7.7%
JMUBJPMorgan Municipal ETF
If rates +1%-6.2%

ETF	Yield (YTM)	If rates +1%	2022	Size
MUBiShares National Muni Bond ETF	4.06%	-7.0%	-7.5%	$45.4B
VTECVanguard California Tax-Exempt Bond ETF	3.92%	-6.9%	–	$3.3B
CMFiShares California Muni Bond ETF	3.80%	-6.8%	-8.1%	$4.6B
SCMBSchwab Municipal Bond ETF	3.84%	-6.6%	–	$4.0B
VCRMVanguard Core Tax-Exempt Bond ETF	4.71%	-7.7%	–	$1.8B
JMUBJPMorgan Municipal ETF	4.35%	-6.2%	-7.5%	$8.8B

The full analysis

And what about stocks?

Bonds are only one side of investing. With Ploutos AI you can analyse a company through its official SEC filings, look into its financials and understand what lies behind the numbers. Every finding comes with a reference to its source, so you can check the data behind the analysis.

A fair value range built from the filings
Earnings quality, debt and red flags
Insider and institutional moves
The case for and the case against

Common questions

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How much would VTEB fall if rates rose?

With a duration of 7.1 years, an immediate one-point rise in rates would take about 7.1% off its price. An equal fall would add about the same.

What is VTEB's yield?

On July 31, 2026, according to its filing, the bonds it holds had a yield to maturity (YTM) of 4.15% a year, before the fund's costs. That is not the distribution the ETF pays, and it moves every day with prices.

How did VTEB do in 2022?

In 2022 VTEB returned -8.2% in total, as the fund reports it.

Is this VTEB's dividend yield?

No. The yield to maturity shown here is what the bonds the fund holds would earn a year if held to maturity, at the prices on the filing date. The dividend yield measures what the ETF paid over the last 12 months against its price, and it lags, because it depends on the coupons of bonds bought earlier. The SEC yield the issuer publishes is a standardised 30-day figure after costs, and usually lands close to the yield to maturity, a little below. When rates have risen, the dividend yield is usually lower than the other two.

US stocksThe market today, the sectors, the largest companies and the week's results.ETF overlapHow much of one ETF is already inside another, stock by stock, from the funds' SEC filings.US dividend stocksEach dividend's yield next to whether the company's cash covers it and whether it was ever cut.Methodology and sourcesWhere every figure comes from and how it is checked.

This page describes what bond ETFs hold, based on their SEC filings. Bond prices change every day and past returns do not say what comes next.