VTEI ETF — Vanguard Intermediate-Term Tax-Exempt Bond

Vanguard Intermediate-Term Tax-Exempt Bond (VTEI)

Updated October 16, 2026.

VTEI is a low-cost ETF. its distribution rate is 3.24%, its trailing-12-month yield is 3.22%, its expense ratio is 0.08%. Dividend Vision Distribution Safety Score™ is 97/100 (Safe). Total return is 4.3% over the past 2.7 years, 56.3 points behind SPY at 60.6%.

Vanguard Intermediate-Term Tax-Exempt Bond is an ETF that tracks investment-grade U.S. municipal bonds with maturities between one month and 20 years, holding at least 80% of its assets in securities whose income is exempt from federal income taxes. The fund offers a modest current distribution rate, paid monthly, with a low expense ratio of 0.08%. It appeals to tax-conscious income investors seeking tax-exempt fixed-income exposure with intermediate-term maturity characteristics.

VTEI performance versus SPY

Price and return data through 2026-10-16.

Total return is 4.3% over the past 2.7 years, 56.3 points behind SPY at 60.6%. Over the past year its total return — price change plus distributions reinvested — is -1.0%. Its deepest 1-year drawdown was 6.1%.

VTEI key facts

Distribution Safety Score™

97 · Safe

Safety-Adjusted Yield

3.14%

Issuer

Vanguard

Asset type

ETF

Asset class

Fixed Income

Inception date

01/29/2024

Expense ratio

0.08%

Distribution rate

3.24%

Distribution frequency

Monthly

Trailing yield

3.22%

Last close

$96.77 (as of 2026-10-16)

AUM

$1,737,711,750

Average volume

396160.0

Dividend

$0.261

Ex-dividend date

10/01/2026

Payment date

10/05/2026

How Dividend Vision calculates yield and returns

Distribution rate (3.24%) uses calculation basis unavailable. Issuer rates can use a different denominator and date, including ex-date NAV. Trailing-12-month yield (3.22%) is the sum of split-adjusted cash distributions with ex-dates in the last 12 months, divided by the published price. It lags a recent raise or cut. Total return uses split-adjusted close with distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date) from the first stored bar on or after inception through the latest bar, compared with the same window on the benchmark. That is the security's total return, not your personal gain/loss.

Yield and safety methodology · Distribution rate methodology · Distribution Safety Score methodology

Sources and review

Primary sources: Vanguard or company page; prices and distributions from Dividend Vision, derived from vendor EOD data.

Reviewed by Bert Sweet, CEO and Co-owner of Dividend Vision. Methodology: Distribution Safety Score.

VTEI risks and drawbacks

VTEI's current distribution rate is moderate, not a high-yield payout — the strategy is dividend quality more than maximum income. Total return has trailed SPY over the available window. The deepest 1-year drawdown on record here is 6.1%.

Who may consider VTEI — and who may not

VTEI may suit someone looking for low-cost broad dividend exposure, a high Distribution Safety Score, moderate current income with a quality tilt. It is a weaker fit for investors hunting double-digit covered-call yields; investors whose main goal is matching SPY total return. This is educational context, not a recommendation to buy or sell.

More on VTEI

• All tickers starting with V

Tagged: Fixed Income.

Frequently asked questions

More securities from Vanguard.