FTABX vs. VWAHX

Last updated Jun 23, 2026

FTABX (Fidelity Tax-Free Bond Fund) and VWAHX (Vanguard High-Yield Tax-Exempt Fund Investor Shares) are both mutual funds - FTABX is a Municipal Bonds fund actively managed by Fidelity, while VWAHX is a High Yield Muni fund actively managed by Vanguard. Both are actively managed. Over the past 10 years, FTABX returned 2.30%/yr vs 2.99%/yr for VWAHX. Their correlation of 0.88 suggests significant overlap in exposure. FTABX charges 0.25%/yr vs 0.17%/yr for VWAHX.

Performance

FTABX vs. VWAHX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Tax-Free Bond Fund (FTABX) and Vanguard High-Yield Tax-Exempt Fund Investor Shares (VWAHX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FTABX achieves a 1.70% return, which is significantly lower than VWAHX's 2.49% return. Over the past 10 years, FTABX has underperformed VWAHX with an annualized return of 2.30%, while VWAHX has yielded a comparatively higher 2.99% annualized return.

FTABX

• 1D: 0.09%
• 1M: 1.65%
• YTD: 1.70%
• 6M: 2.08%
• 1Y: 7.36%
• 3Y*: 4.43%
• 5Y*: 1.01%
• 10Y*: 2.30%

VWAHX

• 1D: 0.09%
• 1M: 2.06%
• YTD: 2.49%
• 6M: 2.93%
• 1Y: 8.45%
• 3Y*: 5.43%
• 5Y*: 1.53%
• 10Y*: 2.99%

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

FTABX vs. VWAHX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FTABX Fidelity Tax-Free Bond Fund	1.70%	5.60%	1.54%	7.51%	-10.74%	2.20%	4.80%	8.58%	0.67%	6.45%
VWAHX Vanguard High-Yield Tax-Exempt Fund Investor Shares	2.49%	4.96%	3.98%	8.39%	-11.76%	3.36%	5.39%	9.48%	1.31%	7.86%

Correlation

The correlation between FTABX and VWAHX is 0.89, 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	0.89
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (10Y) Calculated over the trailing 10-year period	0.91
Correlation (All Time) Calculated using the full available price history since Apr 10, 2001	0.88

The correlation between FTABX and VWAHX has been stable across timeframes, ranging from 0.88 to 0.93 - a consistent structural relationship.

Return for Risk

FTABX vs. VWAHX — Risk / Return Rank

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

FTABX

FTABX Risk / Return Rank: 71
FTABX Sharpe Ratio Rank: 89
FTABX Sortino Ratio Rank: 92
FTABX Omega Ratio Rank: 93
FTABX Calmar Ratio Rank: 43
FTABX Martin Ratio Rank: 39

VWAHX

VWAHX Risk / Return Rank: 76
VWAHX Sharpe Ratio Rank: 87
VWAHX Sortino Ratio Rank: 92
VWAHX Omega Ratio Rank: 93
VWAHX Calmar Ratio Rank: 57
VWAHX Martin Ratio Rank: 53

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.

FTABX vs. VWAHX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Tax-Free Bond Fund (FTABX) and Vanguard High-Yield Tax-Exempt Fund Investor Shares (VWAHX). 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.

	FTABX	VWAHX	Difference
Sharpe ratio: Return per unit of total volatility	2.70	2.63	+0.07
Sortino ratio: Return per unit of downside risk	4.24	4.26	-0.02
Omega ratio: Gain probability vs. loss probability	1.67	1.68	-0.01
Calmar ratio: Return relative to maximum drawdown	2.38	2.78	-0.40
Martin ratio: Return relative to average drawdown	8.09	10.11	-2.02

FTABX vs. VWAHX - Sharpe Ratio Comparison

The current FTABX Sharpe Ratio is 2.70, which is comparable to the VWAHX Sharpe Ratio of 2.63. The chart below compares the historical Sharpe Ratios of FTABX and VWAHX, 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

FTABX vs. VWAHX - Drawdown Comparison

The maximum FTABX drawdown since its inception was -16.14%, smaller than the maximum VWAHX drawdown of -40.26%. Use the drawdown chart below to compare losses from any high point for FTABX and VWAHX.

Drawdown Indicators

	FTABX	VWAHX	Difference
Max Drawdown Largest peak-to-trough decline	-16.14%	-40.26%	+24.12%
Max Drawdown (1Y) Largest decline over 1 year	-3.11%	-3.05%	-0.06%
Max Drawdown (3Y) Largest decline over 3 years	-5.99%	-7.12%	+1.13%
Max Drawdown (5Y) Largest decline over 5 years	-16.14%	-17.32%	+1.18%
Max Drawdown (10Y) Largest decline over 10 years	-16.14%	-17.32%	+1.18%
Current Drawdown Current decline from peak	-0.51%	0.00%	-0.51%
Average Drawdown Average peak-to-trough decline	-2.12%	-6.92%	+4.80%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.91%	0.84%	+0.07%

Volatility

FTABX vs. VWAHX - Volatility Comparison

The current volatility for Fidelity Tax-Free Bond Fund (FTABX) is 0.75%, while Vanguard High-Yield Tax-Exempt Fund Investor Shares (VWAHX) has a volatility of 0.88%. This indicates that FTABX experiences smaller price fluctuations and is considered to be less risky than VWAHX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FTABX	VWAHX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.75%	0.88%	-0.13%
Volatility (6M) Calculated over the trailing 6-month period	2.12%	2.38%	-0.26%
Volatility (1Y) Calculated over the trailing 1-year period	2.74%	3.22%	-0.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.16%	4.80%	-0.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.29%	4.63%	-0.34%

FTABX vs. VWAHX - Expense Ratio Comparison

FTABX has a 0.25% expense ratio, which is higher than VWAHX's 0.17% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

FTABX vs. VWAHX - Dividend Comparison

FTABX's dividend yield for the trailing twelve months is around 3.20%, less than VWAHX's 4.04% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FTABX Fidelity Tax-Free Bond Fund	3.20%	4.18%	2.81%	2.90%	2.16%	2.27%	2.64%	2.94%	3.01%	3.49%	4.22%	3.29%
VWAHX Vanguard High-Yield Tax-Exempt Fund Investor Shares	4.04%	4.95%	4.38%	3.53%	3.36%	2.98%	3.31%	3.94%	3.78%	3.68%	3.75%	3.67%

Frequently Asked Questions

Can I hold both FTABX and VWAHX in my portfolio?

FTABX and VWAHX have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FTABX or VWAHX?

VWAHX has higher volatility (0.88%) compared to FTABX (0.75%). In terms of maximum drawdown, FTABX dropped -16.14% vs VWAHX's -40.26%.

Which has better risk-adjusted returns?

FTABX currently has the higher Sharpe Ratio (2.70 vs 2.63), 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.