LSMSX vs. VMLUX

Last updated Jun 4, 2026

LSMSX (Western Asset SMASh Series TF Fund) and VMLUX (Vanguard Limited-Term Tax-Exempt Fund Admiral Shares) are both Municipal Bonds funds. Over the past 5 years, LSMSX returned 1.20%/yr vs 2.21%/yr for VMLUX. A 0.67 correlation means they provide meaningful diversification when combined. LSMSX charges 0.01%/yr vs 0.09%/yr for VMLUX.

Performance

LSMSX vs. VMLUX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Western Asset SMASh Series TF Fund (LSMSX) and Vanguard Limited-Term Tax-Exempt Fund Admiral Shares (VMLUX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LSMSX achieves a 2.18% return, which is significantly higher than VMLUX's 1.05% return.

LSMSX

• 1D: 0.31%
• 1M: 1.07%
• YTD: 2.18%
• 6M: 2.48%
• 1Y: 8.53%
• 3Y*: 4.03%
• 5Y*: 1.20%
• 10Y*: —

VMLUX

• 1D: 0.09%
• 1M: 0.36%
• YTD: 1.05%
• 6M: 1.41%
• 1Y: 4.44%
• 3Y*: 4.34%
• 5Y*: 2.21%
• 10Y*: 2.15%

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

LSMSX vs. VMLUX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
VMLUX Vanguard Limited-Term Tax-Exempt Fund Admiral Shares	1.05%	5.50%	3.25%	4.29%	-2.90%	0.23%	3.38%	4.21%	1.64%	1.51%

Correlation

The correlation between LSMSX and VMLUX is 0.63, 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	0.63
Correlation (3Y) Calculated over the trailing 3-year period	0.73
Correlation (5Y) Calculated over the trailing 5-year period	0.75
Correlation (All Time) Calculated using the full available price history since Feb 2, 2017	0.67

The correlation between LSMSX and VMLUX shifts across timeframes, from 0.63 (1 year) to 0.75 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

LSMSX vs. VMLUX — Risk / Return Rank

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

LSMSX

LSMSX Risk / Return Rank: 77
LSMSX Sharpe Ratio Rank: 89
LSMSX Sortino Ratio Rank: 92
LSMSX Omega Ratio Rank: 94
LSMSX Calmar Ratio Rank: 61
LSMSX Martin Ratio Rank: 49

VMLUX

VMLUX Risk / Return Rank: 77
VMLUX Sharpe Ratio Rank: 90
VMLUX Sortino Ratio Rank: 96
VMLUX Omega Ratio Rank: 97
VMLUX Calmar Ratio Rank: 57
VMLUX Martin Ratio Rank: 47

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.

LSMSX vs. VMLUX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Western Asset SMASh Series TF Fund (LSMSX) and Vanguard Limited-Term Tax-Exempt Fund Admiral Shares (VMLUX). 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.

	LSMSX	VMLUX	Difference
Sharpe ratio: Return per unit of total volatility	2.95	2.96	-0.01
Sortino ratio: Return per unit of downside risk	4.61	5.48	-0.87
Omega ratio: Gain probability vs. loss probability	1.72	1.98	-0.25
Calmar ratio: Return relative to maximum drawdown	2.99	2.91	+0.08
Martin ratio: Return relative to average drawdown	10.07	9.76	+0.32
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LSMSX vs. VMLUX - Sharpe Ratio Comparison

The current LSMSX Sharpe Ratio is 2.95, which is comparable to the VMLUX Sharpe Ratio of 2.96. The chart below compares the historical Sharpe Ratios of LSMSX and VMLUX, 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

	LSMSX	VMLUX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.95	2.96	-0.01
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.27	1.18	-0.92
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	1.12	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.63	1.48	-0.85

Drawdowns

LSMSX vs. VMLUX - Drawdown Comparison

The maximum LSMSX drawdown since its inception was -15.00%, which is greater than VMLUX's maximum drawdown of -6.41%. Use the drawdown chart below to compare losses from any high point for LSMSX and VMLUX.

Drawdown Indicators

	LSMSX	VMLUX	Difference
Max Drawdown Largest peak-to-trough decline	-15.00%	-6.41%	-8.59%
Max Drawdown (1Y) Largest decline over 1 year	-2.82%	-1.53%	-1.29%
Max Drawdown (3Y) Largest decline over 3 years	-7.49%	-2.02%	-5.47%
Max Drawdown (5Y) Largest decline over 5 years	-15.00%	-5.60%	-9.40%
Max Drawdown (10Y) Largest decline over 10 years	—	-6.41%	—
Current Drawdown Current decline from peak	-0.23%	-0.38%	+0.15%
Average Drawdown Average peak-to-trough decline	-2.85%	-0.54%	-2.31%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.84%	0.46%	+0.38%

Volatility

LSMSX vs. VMLUX - Volatility Comparison

Western Asset SMASh Series TF Fund (LSMSX) has a higher volatility of 1.22% compared to Vanguard Limited-Term Tax-Exempt Fund Admiral Shares (VMLUX) at 0.46%. This indicates that LSMSX's price experiences larger fluctuations and is considered to be riskier than VMLUX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LSMSX	VMLUX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.22%	0.46%	+0.76%
Volatility (6M) Calculated over the trailing 6-month period	2.07%	1.15%	+0.92%
Volatility (1Y) Calculated over the trailing 1-year period	2.88%	1.51%	+1.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.49%	1.87%	+2.62%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.51%	1.93%	+2.58%

LSMSX vs. VMLUX - Expense Ratio Comparison

LSMSX has a 0.01% expense ratio, which is lower than VMLUX's 0.09% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

LSMSX vs. VMLUX - Dividend Comparison

LSMSX's dividend yield for the trailing twelve months is around 3.86%, more than VMLUX's 3.16% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VMLUX Vanguard Limited-Term Tax-Exempt Fund Admiral Shares	3.16%	3.85%	3.38%	2.39%	1.64%	1.04%	1.70%	2.10%	1.89%	1.65%	1.62%	1.58%

Frequently Asked Questions

Can I hold both LSMSX and VMLUX in my portfolio?

LSMSX and VMLUX have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LSMSX or VMLUX?

LSMSX has higher volatility (1.22%) compared to VMLUX (0.46%). In terms of maximum drawdown, LSMSX dropped -15.00% vs VMLUX's -6.41%.

Which has better risk-adjusted returns?

VMLUX currently has the higher Sharpe Ratio (2.96 vs 2.95), 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.