AFB vs. VTMFX

Last updated Jun 20, 2026

AFB (AllianceBernstein National Municipal Income Fund) and VTMFX (Vanguard Tax-Managed Balanced Fund Admiral Shares) are both mutual funds - AFB is a Municipal Bonds fund actively managed by AllianceBernstein, while VTMFX is a Diversified Portfolio fund tracking the Composite benchmark: Russell 1000 Index and Bloomberg 1-15 Year Municipal Bond Index. AFB is actively managed, while VTMFX is passively managed. Over the past 10 years, AFB returned 1.72%/yr vs 8.63%/yr for VTMFX. At a 0.16 correlation, their price movements are largely independent. AFB charges 1.56%/yr vs 0.05%/yr for VTMFX.

Performance

AFB vs. VTMFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in AllianceBernstein National Municipal Income Fund (AFB) and Vanguard Tax-Managed Balanced Fund Admiral Shares (VTMFX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AFB achieves a 8.10% return, which is significantly higher than VTMFX's 5.44% return. Over the past 10 years, AFB has underperformed VTMFX with an annualized return of 1.72%, while VTMFX has yielded a comparatively higher 8.63% annualized return.

AFB

• 1D: 0.18%
• 1M: 4.39%
• YTD: 8.10%
• 6M: 8.30%
• 1Y: 17.88%
• 3Y*: 7.14%
• 5Y*: -1.24%
• 10Y*: 1.72%

VTMFX

• 1D: 0.57%
• 1M: 0.96%
• YTD: 5.44%
• 6M: 5.27%
• 1Y: 15.82%
• 3Y*: 11.93%
• 5Y*: 7.23%
• 10Y*: 8.63%

*Multi-year figures are annualized to reflect compound growth (CAGR)

AFB vs. VTMFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AFB AllianceBernstein National Municipal Income Fund	8.10%	4.41%	4.10%	7.41%	-25.93%	7.25%	7.80%	20.13%	-5.43%	6.15%
VTMFX Vanguard Tax-Managed Balanced Fund Admiral Shares	5.44%	11.28%	12.17%	15.55%	-12.69%	13.10%	13.31%	18.01%	-1.40%	12.61%

Correlation

The correlation between AFB and VTMFX is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.31
Correlation (3Y) Calculated over the trailing 3-year period	0.33
Correlation (5Y) Calculated over the trailing 5-year period	0.30
Correlation (10Y) Calculated over the trailing 10-year period	0.23
Correlation (All Time) Calculated using the full available price history since Jan 29, 2002	0.16

The correlation between AFB and VTMFX shifts across timeframes, from 0.16 (all time) to 0.33 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

AFB vs. VTMFX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AFB

AFB Risk / Return Rank: 68
AFB Sharpe Ratio Rank: 66
AFB Sortino Ratio Rank: 81
AFB Omega Ratio Rank: 71
AFB Calmar Ratio Rank: 65
AFB Martin Ratio Rank: 59

VTMFX

VTMFX Risk / Return Rank: 76
VTMFX Sharpe Ratio Rank: 81
VTMFX Sortino Ratio Rank: 79
VTMFX Omega Ratio Rank: 79
VTMFX Calmar Ratio Rank: 64
VTMFX Martin Ratio Rank: 79

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AFB vs. VTMFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AllianceBernstein National Municipal Income Fund (AFB) and Vanguard Tax-Managed Balanced Fund Admiral Shares (VTMFX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	AFB	VTMFX	Difference
Sharpe ratio: Return per unit of total volatility	2.17	2.45	-0.28
Sortino ratio: Return per unit of downside risk	3.49	3.45	+0.04
Omega ratio: Gain probability vs. loss probability	1.42	1.47	-0.04
Calmar ratio: Return relative to maximum drawdown	2.94	2.93	0.00
Martin ratio: Return relative to average drawdown	11.05	13.72	-2.67

AFB vs. VTMFX - Sharpe Ratio Comparison

The current AFB Sharpe Ratio is 2.17, which is comparable to the VTMFX Sharpe Ratio of 2.45. The chart below compares the historical Sharpe Ratios of AFB and VTMFX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

AFB vs. VTMFX - Drawdown Comparison

The maximum AFB drawdown since its inception was -50.98%, which is greater than VTMFX's maximum drawdown of -28.49%. Use the drawdown chart below to compare losses from any high point for AFB and VTMFX.

Drawdown Indicators

	AFB	VTMFX	Difference
Max Drawdown Largest peak-to-trough decline	-50.98%	-28.49%	-22.49%
Max Drawdown (1Y) Largest decline over 1 year	-5.96%	-5.38%	-0.58%
Max Drawdown (3Y) Largest decline over 3 years	-16.32%	-10.61%	-5.71%
Max Drawdown (5Y) Largest decline over 5 years	-35.17%	-17.40%	-17.77%
Max Drawdown (10Y) Largest decline over 10 years	-35.17%	-21.87%	-13.30%
Current Drawdown Current decline from peak	-7.95%	-0.56%	-7.39%
Average Drawdown Average peak-to-trough decline	-8.98%	-3.54%	-5.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.58%	1.15%	+0.43%

Volatility

AFB vs. VTMFX - Volatility Comparison

AllianceBernstein National Municipal Income Fund (AFB) has a higher volatility of 2.66% compared to Vanguard Tax-Managed Balanced Fund Admiral Shares (VTMFX) at 2.50%. This indicates that AFB's price experiences larger fluctuations and is considered to be riskier than VTMFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AFB	VTMFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.66%	2.50%	+0.16%
Volatility (6M) Calculated over the trailing 6-month period	6.02%	5.21%	+0.81%
Volatility (1Y) Calculated over the trailing 1-year period	8.05%	6.45%	+1.60%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.97%	8.57%	+2.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.25%	9.15%	+2.10%

AFB vs. VTMFX - Expense Ratio Comparison

AFB has a 1.56% expense ratio, which is higher than VTMFX's 0.05% expense ratio.

Dividends

AFB vs. VTMFX - Dividend Comparison

AFB's dividend yield for the trailing twelve months is around 5.04%, more than VTMFX's 2.12% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AFB AllianceBernstein National Municipal Income Fund	5.04%	4.72%	3.83%	3.62%	5.26%	4.32%	4.18%	3.93%	4.53%	4.71%	5.34%	5.80%
VTMFX Vanguard Tax-Managed Balanced Fund Admiral Shares	2.12%	2.14%	2.08%	1.94%	1.85%	1.38%	1.72%	2.05%	2.22%	2.00%	2.13%	2.06%

Frequently Asked Questions

Can I hold both AFB and VTMFX in my portfolio?

AFB and VTMFX have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AFB or VTMFX?

AFB has higher volatility (2.66%) compared to VTMFX (2.50%). In terms of maximum drawdown, AFB dropped -50.98% vs VTMFX's -28.49%.

Which has better risk-adjusted returns?

VTMFX currently has the higher Sharpe Ratio (2.45 vs 2.17), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.