DVTAX vs. LSMSX

Last updated Jun 6, 2026

DVTAX (Delaware Tax-Free California Fund) and LSMSX (Western Asset SMASh Series TF Fund) are both Municipal Bonds funds. Over the past 5 years, DVTAX returned 0.89%/yr vs 1.17%/yr for LSMSX. Their correlation of 0.83 suggests significant overlap in exposure. DVTAX charges 0.82%/yr vs 0.01%/yr for LSMSX.

Performance

DVTAX vs. LSMSX - Performance Comparison

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

Returns By Period

The year-to-date returns for both investments are quite close, with DVTAX having a 2.15% return and LSMSX slightly higher at 2.18%.

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%

LSMSX

• 1D: 0.00%
• 1M: 0.76%
• YTD: 2.18%
• 6M: 2.48%
• 1Y: 8.19%
• 3Y*: 4.03%
• 5Y*: 1.17%
• 10Y*: —

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

DVTAX vs. LSMSX - 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%	6.21%
LSMSX Western Asset SMASh Series TF Fund	2.18%	3.22%	2.22%	7.96%	-10.03%	4.11%	4.48%	8.16%	0.46%	4.92%

Correlation

The correlation between DVTAX and LSMSX is 0.82, 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	0.82
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (All Time) Calculated using the full available price history since Feb 2, 2017	0.83

The correlation between DVTAX and LSMSX has been stable across timeframes, ranging from 0.82 to 0.88 - a consistent structural relationship.

Return for Risk

DVTAX vs. LSMSX — 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

LSMSX

LSMSX Risk / Return Rank: 77
LSMSX Sharpe Ratio Rank: 89
LSMSX Sortino Ratio Rank: 91
LSMSX Omega Ratio Rank: 93
LSMSX Calmar Ratio Rank: 61
LSMSX Martin Ratio Rank: 49

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. LSMSX - Risk-Adjusted Trends Comparison

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

	DVTAX	LSMSX	Difference
Sharpe ratio: Return per unit of total volatility	1.92	2.89	-0.97
Sortino ratio: Return per unit of downside risk	3.00	4.50	-1.50
Omega ratio: Gain probability vs. loss probability	1.42	1.71	-0.29
Calmar ratio: Return relative to maximum drawdown	2.09	2.91	-0.82
Martin ratio: Return relative to average drawdown	6.71	9.80	-3.08
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. LSMSX - Sharpe Ratio Comparison

The current DVTAX Sharpe Ratio is 1.92, which is lower than the LSMSX Sharpe Ratio of 2.89. The chart below compares the historical Sharpe Ratios of DVTAX 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.

Sharpe Ratios by Period

	DVTAX	LSMSX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.92	2.89	-0.97
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.15	0.26	-0.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.47	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.07	0.63	+0.44

Drawdowns

DVTAX vs. LSMSX - Drawdown Comparison

The maximum DVTAX drawdown since its inception was -18.38%, which is greater than LSMSX's maximum drawdown of -15.00%. Use the drawdown chart below to compare losses from any high point for DVTAX and LSMSX.

Drawdown Indicators

	DVTAX	LSMSX	Difference
Max Drawdown Largest peak-to-trough decline	-18.38%	-15.00%	-3.38%
Max Drawdown (1Y) Largest decline over 1 year	-3.54%	-2.82%	-0.72%
Max Drawdown (3Y) Largest decline over 3 years	-8.76%	-7.49%	-1.27%
Max Drawdown (5Y) Largest decline over 5 years	-18.38%	-15.00%	-3.38%
Max Drawdown (10Y) Largest decline over 10 years	-18.38%	—	—
Current Drawdown Current decline from peak	-0.18%	-0.23%	+0.05%
Average Drawdown Average peak-to-trough decline	-2.34%	-2.85%	+0.51%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.10%	0.84%	+0.26%

Volatility

DVTAX vs. LSMSX - Volatility Comparison

Delaware Tax-Free California Fund (DVTAX) has a higher volatility of 1.53% compared to Western Asset SMASh Series TF Fund (LSMSX) at 1.19%. This indicates that DVTAX'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

	DVTAX	LSMSX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.53%	1.19%	+0.34%
Volatility (6M) Calculated over the trailing 6-month period	2.84%	2.06%	+0.78%
Volatility (1Y) Calculated over the trailing 1-year period	3.88%	2.86%	+1.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.78%	4.48%	+1.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.17%	4.51%	+0.66%

DVTAX vs. LSMSX - Expense Ratio Comparison

DVTAX has a 0.82% expense ratio, which is higher than LSMSX's 0.01% expense ratio.

Dividends

DVTAX vs. LSMSX - Dividend Comparison

DVTAX's dividend yield for the trailing twelve months is around 3.96%, more than LSMSX's 3.86% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
LSMSX Western Asset SMASh Series TF Fund	3.86%	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 DVTAX and LSMSX in my portfolio?

DVTAX and LSMSX have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DVTAX or LSMSX?

DVTAX has higher volatility (1.53%) compared to LSMSX (1.19%). In terms of maximum drawdown, DVTAX dropped -18.38% vs LSMSX's -15.00%.

Which has better risk-adjusted returns?

LSMSX currently has the higher Sharpe Ratio (2.88 vs 1.92), 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.