DVTAX vs. DMTFX

Last updated Jun 6, 2026

DVTAX (Delaware Tax-Free California Fund) and DMTFX (Delaware Tax Free USA Fund) are both Municipal Bonds funds from Delaware Funds. Over the past 10 years, DVTAX returned 2.41%/yr vs 2.69%/yr for DMTFX. Their correlation of 0.89 suggests significant overlap in exposure. DVTAX charges 0.82%/yr vs 0.80%/yr for DMTFX.

Performance

DVTAX vs. DMTFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Delaware Tax-Free California Fund (DVTAX) and Delaware Tax Free USA Fund (DMTFX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DVTAX achieves a 2.15% return, which is significantly lower than DMTFX's 2.31% return. Over the past 10 years, DVTAX has underperformed DMTFX with an annualized return of 2.41%, while DMTFX has yielded a comparatively higher 2.69% annualized return.

DVTAX

• 1D: 0.18%
• 1M: 0.71%
• YTD: 2.15%
• 6M: 2.31%
• 1Y: 7.45%
• 3Y*: 4.40%
• 5Y*: 0.89%
• 10Y*: 2.41%

DMTFX

• 1D: 0.20%
• 1M: 1.03%
• YTD: 2.31%
• 6M: 2.60%
• 1Y: 7.37%
• 3Y*: 4.54%
• 5Y*: 0.34%
• 10Y*: 2.69%

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

DVTAX vs. DMTFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DVTAX Delaware Tax-Free California Fund	2.15%	2.10%	3.39%	8.80%	-12.31%	4.08%	5.66%	8.04%	0.07%	6.89%
DMTFX Delaware Tax Free USA Fund	2.31%	2.13%	3.17%	10.72%	-16.20%	5.19%	8.85%	8.97%	0.29%	7.19%

Correlation

The correlation between DVTAX and DMTFX is 0.91, 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	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (10Y) Calculated over the trailing 10-year period	0.92
Correlation (All Time) Calculated using the full available price history since Jun 21, 1996	0.89

The correlation between DVTAX and DMTFX has been stable across timeframes, ranging from 0.89 to 0.95 - a consistent structural relationship.

Return for Risk

DVTAX vs. DMTFX — Risk / Return Rank

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

DVTAX

DVTAX Risk / Return Rank: 45
DVTAX Sharpe Ratio Rank: 45
DVTAX Sortino Ratio Rank: 53
DVTAX Omega Ratio Rank: 63
DVTAX Calmar Ratio Rank: 34
DVTAX Martin Ratio Rank: 30

DMTFX

DMTFX Risk / Return Rank: 41
DMTFX Sharpe Ratio Rank: 41
DMTFX Sortino Ratio Rank: 48
DMTFX Omega Ratio Rank: 54
DMTFX Calmar Ratio Rank: 33
DMTFX Martin Ratio Rank: 27

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.

DVTAX vs. DMTFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Delaware Tax-Free California Fund (DVTAX) and Delaware Tax Free USA Fund (DMTFX). 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.

	DVTAX	DMTFX	Difference
Sharpe ratio: Return per unit of total volatility	1.92	1.80	+0.11
Sortino ratio: Return per unit of downside risk	3.00	2.80	+0.20
Omega ratio: Gain probability vs. loss probability	1.42	1.39	+0.03
Calmar ratio: Return relative to maximum drawdown	2.09	2.07	+0.03
Martin ratio: Return relative to average drawdown	6.71	6.04	+0.67
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DVTAX vs. DMTFX - Sharpe Ratio Comparison

The current DVTAX Sharpe Ratio is 1.92, which is comparable to the DMTFX Sharpe Ratio of 1.80. The chart below compares the historical Sharpe Ratios of DVTAX and DMTFX, 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

	DVTAX	DMTFX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.92	1.80	+0.11
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.15	0.05	+0.10
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.47	0.45	+0.02
Sharpe Ratio (All Time) Calculated using the full available price history	1.07	0.97	+0.10

Drawdowns

DVTAX vs. DMTFX - Drawdown Comparison

The maximum DVTAX drawdown since its inception was -18.38%, smaller than the maximum DMTFX drawdown of -21.92%. Use the drawdown chart below to compare losses from any high point for DVTAX and DMTFX.

Drawdown Indicators

	DVTAX	DMTFX	Difference
Max Drawdown Largest peak-to-trough decline	-18.38%	-21.92%	+3.54%
Max Drawdown (1Y) Largest decline over 1 year	-3.54%	-3.60%	+0.06%
Max Drawdown (3Y) Largest decline over 3 years	-8.76%	-11.32%	+2.56%
Max Drawdown (5Y) Largest decline over 5 years	-18.38%	-21.92%	+3.54%
Max Drawdown (10Y) Largest decline over 10 years	-18.38%	-21.92%	+3.54%
Current Drawdown Current decline from peak	-0.18%	-0.15%	-0.03%
Average Drawdown Average peak-to-trough decline	-2.34%	-2.55%	+0.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.10%	1.22%	-0.12%

Volatility

DVTAX vs. DMTFX - Volatility Comparison

Delaware Tax-Free California Fund (DVTAX) and Delaware Tax Free USA Fund (DMTFX) have volatilities of 1.53% and 1.48%, 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

	DVTAX	DMTFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.53%	1.48%	+0.05%
Volatility (6M) Calculated over the trailing 6-month period	2.84%	2.85%	-0.01%
Volatility (1Y) Calculated over the trailing 1-year period	3.88%	4.13%	-0.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.78%	6.61%	-0.83%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.17%	6.00%	-0.83%

DVTAX vs. DMTFX - Expense Ratio Comparison

DVTAX has a 0.82% expense ratio, which is higher than DMTFX's 0.80% expense ratio.

Dividends

DVTAX vs. DMTFX - Dividend Comparison

DVTAX's dividend yield for the trailing twelve months is around 3.96%, less than DMTFX's 4.26% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DMTFX Delaware Tax Free USA Fund	4.26%	5.69%	4.77%	3.53%	3.67%	4.00%	4.24%	4.44%	3.64%	4.74%	4.70%	3.63%
DVTAX Delaware Tax-Free California Fund	3.96%	5.06%	4.06%	3.19%	3.33%	2.95%	3.54%	4.29%	3.51%	3.72%	3.53%	3.44%

Frequently Asked Questions

Can I hold both DVTAX and DMTFX in my portfolio?

With a correlation of 0.91, DVTAX and DMTFX 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, DVTAX or DMTFX?

DVTAX has higher volatility (1.53%) compared to DMTFX (1.48%). In terms of maximum drawdown, DVTAX dropped -18.38% vs DMTFX's -21.92%.

Which has better risk-adjusted returns?

DVTAX currently has the higher Sharpe Ratio (1.92 vs 1.80), 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.