DEFFX vs. DVMHX

Last updated Jun 3, 2026

DEFFX (Delaware Tax-Free Minnesota Fund) and DVMHX (Delaware Minnesota High-Yield Municipal Bond Fund) are both Municipal Bonds funds from Delaware Funds by Macquarie. Over the past 10 years, DEFFX returned 2.07%/yr vs 2.51%/yr for DVMHX. Their correlation of 0.89 suggests significant overlap in exposure. DEFFX charges 0.85%/yr vs 0.88%/yr for DVMHX.

Performance

DEFFX vs. DVMHX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Delaware Tax-Free Minnesota Fund (DEFFX) and Delaware Minnesota High-Yield Municipal Bond Fund (DVMHX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DEFFX achieves a 1.91% return, which is significantly lower than DVMHX's 2.30% return. Over the past 10 years, DEFFX has underperformed DVMHX with an annualized return of 2.07%, while DVMHX has yielded a comparatively higher 2.51% annualized return.

DEFFX

• 1D: 0.00%
• 1M: 0.77%
• YTD: 1.91%
• 6M: 2.40%
• 1Y: 8.70%
• 3Y*: 4.09%
• 5Y*: 0.87%
• 10Y*: 2.07%

DVMHX

• 1D: 0.00%
• 1M: 0.82%
• YTD: 2.30%
• 6M: 2.94%
• 1Y: 9.28%
• 3Y*: 4.92%
• 5Y*: 1.26%
• 10Y*: 2.51%

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

DEFFX vs. DVMHX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DEFFX Delaware Tax-Free Minnesota Fund	1.91%	4.51%	3.36%	4.20%	-9.79%	2.13%	4.02%	7.35%	0.89%	5.36%
DVMHX Delaware Minnesota High-Yield Municipal Bond Fund	2.30%	4.22%	5.10%	5.24%	-10.69%	3.07%	3.95%	8.74%	0.79%	5.97%

Correlation

The correlation between DEFFX and DVMHX is 0.94, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.91
Correlation (All Time) Calculated using the full available price history since Jun 21, 1996	0.89

The correlation between DEFFX and DVMHX has been stable across timeframes, ranging from 0.89 to 0.94 - a consistent structural relationship.

Return for Risk

DEFFX vs. DVMHX — Risk / Return Rank

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

DEFFX

DEFFX Risk / Return Rank: 60
DEFFX Sharpe Ratio Rank: 67
DEFFX Sortino Ratio Rank: 76
DEFFX Omega Ratio Rank: 84
DEFFX Calmar Ratio Rank: 37
DEFFX Martin Ratio Rank: 38

DVMHX

DVMHX Risk / Return Rank: 61
DVMHX Sharpe Ratio Rank: 64
DVMHX Sortino Ratio Rank: 74
DVMHX Omega Ratio Rank: 82
DVMHX Calmar Ratio Rank: 44
DVMHX Martin Ratio Rank: 43

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.

DEFFX vs. DVMHX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Delaware Tax-Free Minnesota Fund (DEFFX) and Delaware Minnesota High-Yield Municipal Bond Fund (DVMHX). 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.

	DEFFX	DVMHX	Difference
Sharpe ratio Return per unit of total volatility	2.40	2.35	+0.04
Sortino ratio Return per unit of downside risk	3.66	3.60	+0.05
Omega ratio Gain probability vs. loss probability	1.57	1.55	+0.02
Calmar ratio Return relative to maximum drawdown	2.33	2.52	-0.19
Martin ratio Return relative to average drawdown	8.29	9.24	-0.95
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DEFFX vs. DVMHX - Sharpe Ratio Comparison

The current DEFFX Sharpe Ratio is 2.40, which is comparable to the DVMHX Sharpe Ratio of 2.35. The chart below compares the historical Sharpe Ratios of DEFFX and DVMHX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	DEFFX	DVMHX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.40	2.35	+0.04
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.19	0.25	-0.07
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.48	0.54	-0.06
Sharpe Ratio (All Time) Calculated using the full available price history	1.16	1.12	+0.04

Drawdowns

DEFFX vs. DVMHX - Drawdown Comparison

The maximum DEFFX drawdown since its inception was -14.70%, smaller than the maximum DVMHX drawdown of -15.73%. Use the drawdown chart below to compare losses from any high point for DEFFX and DVMHX.

Drawdown Indicators

	DEFFX	DVMHX	Difference
Max Drawdown Largest peak-to-trough decline	-14.70%	-15.73%	+1.03%
Max Drawdown (1Y) Largest decline over 1 year	-3.62%	-3.55%	-0.07%
Max Drawdown (3Y) Largest decline over 3 years	-7.31%	-7.86%	+0.55%
Max Drawdown (5Y) Largest decline over 5 years	-14.70%	-15.56%	+0.86%
Max Drawdown (10Y) Largest decline over 10 years	-14.70%	-15.56%	+0.86%
Current Drawdown Current decline from peak	-0.39%	-0.13%	-0.26%
Average Drawdown Average peak-to-trough decline	-1.81%	-1.97%	+0.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.02%	0.97%	+0.05%

Volatility

DEFFX vs. DVMHX - Volatility Comparison

Delaware Tax-Free Minnesota Fund (DEFFX) and Delaware Minnesota High-Yield Municipal Bond Fund (DVMHX) have volatilities of 1.41% and 1.46%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DEFFX	DVMHX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.41%	1.46%	-0.05%
Volatility (6M) Calculated over the trailing 6-month period	2.65%	2.75%	-0.10%
Volatility (1Y) Calculated over the trailing 1-year period	3.54%	3.79%	-0.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.71%	5.01%	-0.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.34%	4.68%	-0.34%

DEFFX vs. DVMHX - Expense Ratio Comparison

DEFFX has a 0.85% expense ratio, which is lower than DVMHX's 0.88% expense ratio.

Dividends

DEFFX vs. DVMHX - Dividend Comparison

DEFFX's dividend yield for the trailing twelve months is around 3.61%, less than DVMHX's 3.78% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DEFFX Delaware Tax-Free Minnesota Fund	3.61%	4.69%	3.94%	2.81%	2.59%	2.18%	2.77%	3.63%	3.51%	4.33%	3.26%	3.52%
DVMHX Delaware Minnesota High-Yield Municipal Bond Fund	3.78%	4.95%	4.17%	3.12%	2.98%	2.40%	2.99%	3.70%	3.21%	3.34%	3.29%	3.47%

Frequently Asked Questions

Can I hold both DEFFX and DVMHX in my portfolio?

With a correlation of 0.94, DEFFX and DVMHX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, DEFFX or DVMHX?

DVMHX has higher volatility (1.46%) compared to DEFFX (1.41%). In terms of maximum drawdown, DEFFX dropped -14.70% vs DVMHX's -15.73%.

Which has better risk-adjusted returns?

DEFFX currently has the higher Sharpe Ratio (2.40 vs 2.35), 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.