VTEB invests in U.S. municipal bonds, whose interest is exempt from U.S. federal income tax. That tax benefit applies to U.S. resident taxpayers and effectively doesn't apply to Korean-resident investors — so its 3.44% yield, which looks low on paper for good reason (after-tax equivalent yield calculations for U.S. taxpayers), carries no such meaning for Korean investors.

For that reason, VTEB is a lower-priority bond ETF for Korean investors in U.S. stocks; a general bond ETF unrelated to any U.S. tax exemption, like BND or AGG, is the more sensible choice for similar bond exposure.