HYD vs. VWALX

Last updated Jun 21, 2026

HYD (VanEck Vectors High-Yield Municipal Index ETF) and VWALX (Vanguard High-Yield Tax-Exempt Fund Admiral Shares) are both funds - HYD is a Municipal Bonds fund tracking the Bloomberg Barclays Municipal Custom High Yield Composite Index, while VWALX is a High Yield Muni fund actively managed by Vanguard. HYD is passively managed, while VWALX is actively managed. Over the past 10 years, HYD returned 1.99%/yr vs 3.07%/yr for VWALX. At a 0.46 correlation, their price movements are largely independent. HYD charges 0.35%/yr vs 0.09%/yr for VWALX.

Performance

HYD vs. VWALX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Vectors High-Yield Municipal Index ETF (HYD) and Vanguard High-Yield Tax-Exempt Fund Admiral Shares (VWALX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

As of year-to-date, both investments have demonstrated similar returns, with HYD at 2.52% and VWALX at 2.52%. Over the past 10 years, HYD has underperformed VWALX with an annualized return of 1.99%, while VWALX has yielded a comparatively higher 3.07% annualized return.

HYD

• 1D: 0.45%
• 1M: 1.90%
• YTD: 2.52%
• 6M: 2.85%
• 1Y: 7.63%
• 3Y*: 4.40%
• 5Y*: -0.14%
• 10Y*: 1.99%

VWALX

• 1D: 0.09%
• 1M: 2.16%
• YTD: 2.52%
• 6M: 2.98%
• 1Y: 8.54%
• 3Y*: 5.52%
• 5Y*: 1.61%
• 10Y*: 3.07%

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

HYD vs. VWALX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HYD VanEck Vectors High-Yield Municipal Index ETF	2.52%	2.83%	4.94%	6.52%	-15.97%	5.05%	0.17%	9.34%	2.19%	9.78%
VWALX Vanguard High-Yield Tax-Exempt Fund Admiral Shares	2.52%	5.06%	4.08%	8.45%	-11.69%	3.42%	5.49%	9.58%	1.38%	7.96%

Correlation

The correlation between HYD and VWALX is 0.66, 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	0.66
Correlation (3Y) Calculated over the trailing 3-year period	0.69
Correlation (5Y) Calculated over the trailing 5-year period	0.65
Correlation (10Y) Calculated over the trailing 10-year period	0.55
Correlation (All Time) Calculated using the full available price history since Feb 5, 2009	0.46

The correlation between HYD and VWALX shifts across timeframes, from 0.46 (all time) to 0.69 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

HYD vs. VWALX — Risk / Return Rank

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

HYD

HYD Risk / Return Rank: 62
HYD Sharpe Ratio Rank: 63
HYD Sortino Ratio Rank: 67
HYD Omega Ratio Rank: 75
HYD Calmar Ratio Rank: 52
HYD Martin Ratio Rank: 52

VWALX

VWALX Risk / Return Rank: 79
VWALX Sharpe Ratio Rank: 89
VWALX Sortino Ratio Rank: 93
VWALX Omega Ratio Rank: 94
VWALX Calmar Ratio Rank: 63
VWALX Martin Ratio Rank: 56

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.

HYD vs. VWALX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Vectors High-Yield Municipal Index ETF (HYD) and Vanguard High-Yield Tax-Exempt Fund Admiral Shares (VWALX). 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.

	HYD	VWALX	Difference
Sharpe ratio: Return per unit of total volatility	1.99	2.65	-0.67
Sortino ratio: Return per unit of downside risk	2.90	4.30	-1.40
Omega ratio: Gain probability vs. loss probability	1.42	1.69	-0.27
Calmar ratio: Return relative to maximum drawdown	2.46	2.81	-0.35
Martin ratio: Return relative to average drawdown	8.47	10.24	-1.77

HYD vs. VWALX - Sharpe Ratio Comparison

The current HYD Sharpe Ratio is 1.99, which is comparable to the VWALX Sharpe Ratio of 2.65. The chart below compares the historical Sharpe Ratios of HYD and VWALX, 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

HYD vs. VWALX - Drawdown Comparison

The maximum HYD drawdown since its inception was -35.61%, which is greater than VWALX's maximum drawdown of -17.24%. Use the drawdown chart below to compare losses from any high point for HYD and VWALX.

Drawdown Indicators

	HYD	VWALX	Difference
Max Drawdown Largest peak-to-trough decline	-35.61%	-17.24%	-18.37%
Max Drawdown (1Y) Largest decline over 1 year	-3.21%	-3.05%	-0.16%
Max Drawdown (3Y) Largest decline over 3 years	-7.23%	-7.10%	-0.13%
Max Drawdown (5Y) Largest decline over 5 years	-20.72%	-17.24%	-3.48%
Max Drawdown (10Y) Largest decline over 10 years	-35.61%	-17.24%	-18.37%
Current Drawdown Current decline from peak	-1.65%	0.00%	-1.65%
Average Drawdown Average peak-to-trough decline	-4.32%	-2.16%	-2.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.93%	0.84%	+0.09%

Volatility

HYD vs. VWALX - Volatility Comparison

VanEck Vectors High-Yield Municipal Index ETF (HYD) and Vanguard High-Yield Tax-Exempt Fund Admiral Shares (VWALX) have volatilities of 0.90% and 0.88%, 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

	HYD	VWALX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.90%	0.88%	+0.02%
Volatility (6M) Calculated over the trailing 6-month period	3.03%	2.39%	+0.64%
Volatility (1Y) Calculated over the trailing 1-year period	3.97%	3.23%	+0.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.46%	4.81%	+1.65%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.60%	4.64%	+7.96%

HYD vs. VWALX - Expense Ratio Comparison

HYD has a 0.35% expense ratio, which is higher than VWALX's 0.09% expense ratio.

Dividends

HYD vs. VWALX - Dividend Comparison

HYD's dividend yield for the trailing twelve months is around 4.24%, more than VWALX's 4.12% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HYD VanEck Vectors High-Yield Municipal Index ETF	4.24%	4.29%	4.29%	4.13%	3.96%	3.50%	4.01%	4.08%	4.43%	4.29%	4.58%	4.82%
VWALX Vanguard High-Yield Tax-Exempt Fund Admiral Shares	4.12%	5.04%	4.47%	3.59%	3.44%	3.04%	3.40%	4.03%	3.85%	3.77%	3.86%	3.75%

Frequently Asked Questions

Can I hold both HYD and VWALX in my portfolio?

HYD and VWALX have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HYD or VWALX?

HYD has higher volatility (0.90%) compared to VWALX (0.88%). In terms of maximum drawdown, HYD dropped -35.61% vs VWALX's -17.24%.

Which has better risk-adjusted returns?

VWALX currently has the higher Sharpe Ratio (2.65 vs 1.99), 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.