AVAAX vs. LSMSX

Last updated Jun 27, 2026

AVAAX (AB Municipal Income Fund II Virginia Portfolio) and LSMSX (Western Asset SMASh Series TF Fund) are both Municipal Bonds funds. Over the past 5 years, AVAAX returned 0.81%/yr vs 1.20%/yr for LSMSX. Their correlation of 0.81 suggests significant overlap in exposure. AVAAX charges 0.80%/yr vs 0.01%/yr for LSMSX.

Performance

AVAAX vs. LSMSX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in AB Municipal Income Fund II Virginia Portfolio (AVAAX) and Western Asset SMASh Series TF Fund (LSMSX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AVAAX achieves a 1.70% return, which is significantly lower than LSMSX's 2.64% return.

AVAAX

• 1D: 0.10%
• 1M: 0.94%
• YTD: 1.70%
• 6M: 1.98%
• 1Y: 6.24%
• 3Y*: 3.78%
• 5Y*: 0.81%
• 10Y*: 1.86%

LSMSX

• 1D: 0.10%
• 1M: 1.18%
• YTD: 2.64%
• 6M: 2.85%
• 1Y: 8.03%
• 3Y*: 3.87%
• 5Y*: 1.20%
• 10Y*: —

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

AVAAX vs. LSMSX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AVAAX AB Municipal Income Fund II Virginia Portfolio	1.70%	4.95%	1.50%	5.23%	-9.38%	2.13%	4.52%	7.09%	0.47%	4.27%
LSMSX Western Asset SMASh Series TF Fund	2.64%	3.22%	2.22%	7.96%	-10.03%	4.11%	4.48%	8.16%	0.46%	4.92%

Correlation

The correlation between AVAAX and LSMSX is 0.79, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.79
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.87
Correlation (All Time) Calculated using the full available price history since Feb 1, 2017	0.81

The correlation between AVAAX and LSMSX has been stable across timeframes, ranging from 0.79 to 0.87 - a consistent structural relationship.

Return for Risk

AVAAX vs. LSMSX — Risk / Return Rank

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

AVAAX

AVAAX Risk / Return Rank: 70
AVAAX Sharpe Ratio Rank: 86
AVAAX Sortino Ratio Rank: 89
AVAAX Omega Ratio Rank: 90
AVAAX Calmar Ratio Rank: 44
AVAAX Martin Ratio Rank: 40

LSMSX

LSMSX Risk / Return Rank: 84
LSMSX Sharpe Ratio Rank: 95
LSMSX Sortino Ratio Rank: 95
LSMSX Omega Ratio Rank: 95
LSMSX Calmar Ratio Rank: 76
LSMSX Martin Ratio Rank: 59

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.

AVAAX vs. LSMSX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AB Municipal Income Fund II Virginia Portfolio (AVAAX) and Western Asset SMASh Series TF Fund (LSMSX). 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.

	AVAAX	LSMSX	Difference
Sharpe ratio: Return per unit of total volatility	2.46	2.94	-0.48
Sortino ratio: Return per unit of downside risk	3.86	4.56	-0.70
Omega ratio: Gain probability vs. loss probability	1.59	1.73	-0.14
Calmar ratio: Return relative to maximum drawdown	2.22	2.94	-0.72
Martin ratio: Return relative to average drawdown	7.54	9.87	-2.33

AVAAX vs. LSMSX - Sharpe Ratio Comparison

The current AVAAX Sharpe Ratio is 2.46, which is comparable to the LSMSX Sharpe Ratio of 2.94. The chart below compares the historical Sharpe Ratios of AVAAX and LSMSX, 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

AVAAX vs. LSMSX - Drawdown Comparison

The maximum AVAAX drawdown since its inception was -14.11%, smaller than the maximum LSMSX drawdown of -15.00%. Use the drawdown chart below to compare losses from any high point for AVAAX and LSMSX.

Drawdown Indicators

	AVAAX	LSMSX	Difference
Max Drawdown Largest peak-to-trough decline	-14.11%	-15.00%	+0.89%
Max Drawdown (1Y) Largest decline over 1 year	-2.91%	-2.82%	-0.09%
Max Drawdown (3Y) Largest decline over 3 years	-5.83%	-7.49%	+1.66%
Max Drawdown (5Y) Largest decline over 5 years	-14.11%	-15.00%	+0.89%
Max Drawdown (10Y) Largest decline over 10 years	-14.11%	—	—
Current Drawdown Current decline from peak	-0.35%	0.00%	-0.35%
Average Drawdown Average peak-to-trough decline	-1.76%	-2.83%	+1.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.86%	0.84%	+0.02%

Volatility

AVAAX vs. LSMSX - Volatility Comparison

AB Municipal Income Fund II Virginia Portfolio (AVAAX) has a higher volatility of 0.67% compared to Western Asset SMASh Series TF Fund (LSMSX) at 0.58%. This indicates that AVAAX's price experiences larger fluctuations and is considered to be riskier than LSMSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AVAAX	LSMSX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.67%	0.58%	+0.09%
Volatility (6M) Calculated over the trailing 6-month period	2.06%	2.06%	0.00%
Volatility (1Y) Calculated over the trailing 1-year period	2.63%	2.82%	-0.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.92%	4.48%	-0.56%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.77%	4.49%	-0.72%

AVAAX vs. LSMSX - Expense Ratio Comparison

AVAAX has a 0.80% expense ratio, which is higher than LSMSX's 0.01% expense ratio.

Dividends

AVAAX vs. LSMSX - Dividend Comparison

AVAAX's dividend yield for the trailing twelve months is around 3.12%, less than LSMSX's 3.83% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AVAAX AB Municipal Income Fund II Virginia Portfolio	3.12%	4.10%	2.83%	2.36%	2.21%	1.67%	2.35%	2.94%	3.11%	2.98%	3.10%	3.16%
LSMSX Western Asset SMASh Series TF Fund	3.83%	3.83%	4.30%	3.37%	2.38%	2.73%	2.33%	2.55%	2.34%	0.90%	0.00%	0.00%

Frequently Asked Questions

Can I hold both AVAAX and LSMSX in my portfolio?

AVAAX and LSMSX have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AVAAX or LSMSX?

AVAAX has higher volatility (0.67%) compared to LSMSX (0.58%). In terms of maximum drawdown, AVAAX dropped -14.11% vs LSMSX's -15.00%.

Which has better risk-adjusted returns?

LSMSX currently has the higher Sharpe Ratio (2.94 vs 2.46), 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.