OPTAX vs. VTMFX

Last updated Jun 23, 2026

OPTAX (Invesco AMT-Free Municipal Fund) and VTMFX (Vanguard Tax-Managed Balanced Fund Admiral Shares) are both mutual funds - OPTAX is a Municipal Bonds fund managed by Invesco, while VTMFX is a Diversified Portfolio fund tracking the Composite benchmark: Russell 1000 Index and Bloomberg 1-15 Year Municipal Bond Index. Over the past 10 years, OPTAX returned 3.45%/yr vs 8.63%/yr for VTMFX. At a 0.07 correlation, their price movements are largely independent. OPTAX charges 0.75%/yr vs 0.05%/yr for VTMFX.

Performance

OPTAX vs. VTMFX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco AMT-Free Municipal Fund (OPTAX) and Vanguard Tax-Managed Balanced Fund Admiral Shares (VTMFX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, OPTAX achieves a 1.66% return, which is significantly lower than VTMFX's 5.44% return. Over the past 10 years, OPTAX has underperformed VTMFX with an annualized return of 3.45%, while VTMFX has yielded a comparatively higher 8.63% annualized return.

OPTAX

• 1D: 0.15%
• 1M: 2.01%
• YTD: 1.66%
• 6M: 2.17%
• 1Y: 6.06%
• 3Y*: 3.19%
• 5Y*: 0.20%
• 10Y*: 3.45%

VTMFX

• 1D: 0.57%
• 1M: 0.96%
• YTD: 5.44%
• 6M: 5.27%
• 1Y: 15.82%
• 3Y*: 11.93%
• 5Y*: 7.23%
• 10Y*: 8.63%

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

OPTAX vs. VTMFX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
OPTAX Invesco AMT-Free Municipal Fund	1.66%	2.70%	2.13%	6.64%	-12.15%	4.16%	7.57%	12.33%	7.43%	5.98%
VTMFX Vanguard Tax-Managed Balanced Fund Admiral Shares	5.44%	11.28%	12.17%	15.55%	-12.69%	13.10%	13.31%	18.01%	-1.40%	12.61%

Correlation

The correlation between OPTAX and VTMFX is 0.32, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.32
Correlation (3Y) Calculated over the trailing 3-year period	0.30
Correlation (5Y) Calculated over the trailing 5-year period	0.24
Correlation (10Y) Calculated over the trailing 10-year period	0.16
Correlation (All Time) Calculated using the full available price history since Sep 6, 1994	0.07

Over the past year, OPTAX and VTMFX have become more correlated (0.32) than their long-term average of 0.07, meaning their price movements have been converging.

Return for Risk

OPTAX vs. VTMFX — Risk / Return Rank

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

OPTAX

OPTAX Risk / Return Rank: 51
OPTAX Sharpe Ratio Rank: 48
OPTAX Sortino Ratio Rank: 57
OPTAX Omega Ratio Rank: 74
OPTAX Calmar Ratio Rank: 40
OPTAX Martin Ratio Rank: 35

VTMFX

VTMFX Risk / Return Rank: 76
VTMFX Sharpe Ratio Rank: 81
VTMFX Sortino Ratio Rank: 79
VTMFX Omega Ratio Rank: 79
VTMFX Calmar Ratio Rank: 64
VTMFX Martin Ratio Rank: 79

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.

OPTAX vs. VTMFX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco AMT-Free Municipal Fund (OPTAX) and Vanguard Tax-Managed Balanced Fund Admiral Shares (VTMFX). 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.

	OPTAX	VTMFX	Difference
Sharpe ratio: Return per unit of total volatility	1.88	2.45	-0.57
Sortino ratio: Return per unit of downside risk	2.90	3.45	-0.55
Omega ratio: Gain probability vs. loss probability	1.44	1.47	-0.03
Calmar ratio: Return relative to maximum drawdown	2.30	2.93	-0.64
Martin ratio: Return relative to average drawdown	7.40	13.72	-6.33

OPTAX vs. VTMFX - Sharpe Ratio Comparison

The current OPTAX Sharpe Ratio is 1.88, which is comparable to the VTMFX Sharpe Ratio of 2.45. The chart below compares the historical Sharpe Ratios of OPTAX and VTMFX, 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

OPTAX vs. VTMFX - Drawdown Comparison

The maximum OPTAX drawdown since its inception was -48.56%, which is greater than VTMFX's maximum drawdown of -28.49%. Use the drawdown chart below to compare losses from any high point for OPTAX and VTMFX.

Drawdown Indicators

	OPTAX	VTMFX	Difference
Max Drawdown Largest peak-to-trough decline	-48.56%	-28.49%	-20.07%
Max Drawdown (1Y) Largest decline over 1 year	-2.93%	-5.38%	+2.45%
Max Drawdown (3Y) Largest decline over 3 years	-7.93%	-10.61%	+2.68%
Max Drawdown (5Y) Largest decline over 5 years	-17.30%	-17.40%	+0.10%
Max Drawdown (10Y) Largest decline over 10 years	-17.30%	-21.87%	+4.57%
Current Drawdown Current decline from peak	-0.22%	-0.56%	+0.34%
Average Drawdown Average peak-to-trough decline	-6.36%	-3.54%	-2.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.89%	1.15%	-0.26%

Volatility

OPTAX vs. VTMFX - Volatility Comparison

The current volatility for Invesco AMT-Free Municipal Fund (OPTAX) is 0.95%, while Vanguard Tax-Managed Balanced Fund Admiral Shares (VTMFX) has a volatility of 2.50%. This indicates that OPTAX experiences smaller price fluctuations and is considered to be less risky than VTMFX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	OPTAX	VTMFX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.95%	2.50%	-1.55%
Volatility (6M) Calculated over the trailing 6-month period	2.53%	5.21%	-2.68%
Volatility (1Y) Calculated over the trailing 1-year period	3.58%	6.45%	-2.87%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.03%	8.57%	-3.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.87%	9.15%	-4.28%

OPTAX vs. VTMFX - Expense Ratio Comparison

OPTAX has a 0.75% expense ratio, which is higher than VTMFX's 0.05% expense ratio.

Dividends

OPTAX vs. VTMFX - Dividend Comparison

OPTAX's dividend yield for the trailing twelve months is around 2.68%, more than VTMFX's 2.12% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
OPTAX Invesco AMT-Free Municipal Fund	2.68%	4.23%	4.16%	3.02%	2.99%	3.43%	3.80%	3.75%	3.82%	4.71%	5.77%	6.05%
VTMFX Vanguard Tax-Managed Balanced Fund Admiral Shares	2.12%	2.14%	2.08%	1.94%	1.85%	1.38%	1.72%	2.05%	2.22%	2.00%	2.13%	2.06%

Frequently Asked Questions

Can I hold both OPTAX and VTMFX in my portfolio?

OPTAX and VTMFX have a correlation of 0.32, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, OPTAX or VTMFX?

VTMFX has higher volatility (2.50%) compared to OPTAX (0.95%). In terms of maximum drawdown, OPTAX dropped -48.56% vs VTMFX's -28.49%.

Which has better risk-adjusted returns?

VTMFX currently has the higher Sharpe Ratio (2.45 vs 1.88), 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.