Two of the market's most popular income ETFs compared side-by-side. See which one fits your yield strategy.
What this means: Both UL and VTEB fall intoTier 1: Cornerstone. This suggests they share a similar risk profile and volatility expectation.
| Metric | UL | VTEB |
|---|---|---|
| Total Return (1Y) | 5.39% | 3.07% |
| NAV Change (1Y) | 1.71% | -0.30% |
| Max Drawdown | -16.06% | -4.99% |
| Beta | - | - |
* Returns include dividend reinvestment. Drawdown calculates peak-to-trough decline over trailing 12 months.
UL (Unilever PLC) is a conservative dividend growth fund managed by Unilever PLC. It focuses on generating income through strategic holdings. With significant capital, this fund has been operational since its inception.
Strategy: Focuses on quality dividend-paying companies with strong balance sheets and consistent payout histories.
VTEB (Vanguard Tax-Exempt Bond Index Fund ETF Shares) is a conservative dividend growth fund managed by Vanguard. It focuses on generating income through strategic holdings. With $45.1B in assets under management, this fund has been operational since its inception.
Strategy: Focuses on quality dividend-paying companies with strong balance sheets and consistent payout histories.
In the head-to-head battle of UL vs VTEB, the choice depends on your specific goal. UL wins for Immediate Income with a 3.68% yield. However, UL is the better choice for Long-Term Growth due to superior total return performance.
Which fund is safer for retirement income? We analyze the yield sustainability and structural risk.
The Bottom Line Question: If you invest $100,000 today, how much cash will you actually receive each month? Here's the exact math:
UL
Annual Yield: 3.68%
$307/mo
($3,678/year)
Frequency: quarterly
VTEB
Annual Yield: 3.37%
$281/mo
($3,370/year)
Frequency: monthly
Income Gap: UL generates $308/year more than VTEB on the same $100k investment.
Over 20 years, that's $6,155 in additional cash flow (before reinvestment).
Context Matters: Higher income doesn't always mean better investment. Review the "Yield Trap" and "Total Return" sections above—you want income that's sustainable, not just headline-grabbing.
Historical data reveals how these funds behave during market stress. UL has delivered a superior Total Return of 5.39% over the past year.
What is Max Drawdown? Max drawdown measures the largest peak-to-trough decline in portfolio value during a specific period. Unlike NAV change (which only looks at start vs. end), max drawdown captures the worst moment of pain an investor experienced.
Real-World Scenario: $100,000 Investment
VTEB (More Resilient)
Max Drawdown: -4.99%
-$4,990
Worst unrealized loss
UL (More Volatile)
Max Drawdown: -16.06%
-$16,060
Worst unrealized loss
Protection Value: VTEB saved investors $11,070 in drawdown severity on a $100k position.
Why This Matters More Than Total Return: During bear markets or corrections, investors with lower max drawdown are:
⚖️ Capital Preservation Winner: VTEB demonstrated superior downside protection, making it the better choice for retirees who cannot afford steep temporary losses.
Every investor has a unique risk profile. Use our Portfolio Intelligence tool to see the impact of adding these ETFs to your holdings.