VCITX vs. FSMUX

Last updated Jun 5, 2026

VCITX (Vanguard California Long-Term Tax-Exempt Fund Investor Shares) and FSMUX (Strategic Advisers Municipal Bond Fund) are both Municipal Bonds funds. Over the past 3 years, VCITX returned 4.78%/yr vs 3.86%/yr for FSMUX. Their correlation of 0.88 suggests significant overlap in exposure. VCITX charges 0.17%/yr vs 0.06%/yr for FSMUX.

Performance

VCITX vs. FSMUX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard California Long-Term Tax-Exempt Fund Investor Shares (VCITX) and Strategic Advisers Municipal Bond Fund (FSMUX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VCITX achieves a 1.76% return, which is significantly higher than FSMUX's 1.47% return.

VCITX

• 1D: 0.00%
• 1M: 0.83%
• YTD: 1.76%
• 6M: 2.16%
• 1Y: 8.18%
• 3Y*: 4.78%
• 5Y*: 1.31%
• 10Y*: 2.53%

FSMUX

• 1D: 0.00%
• 1M: 0.79%
• YTD: 1.47%
• 6M: 1.83%
• 1Y: 6.82%
• 3Y*: 3.86%
• 5Y*: —
• 10Y*: —

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

VCITX vs. FSMUX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
VCITX Vanguard California Long-Term Tax-Exempt Fund Investor Shares	1.76%	4.90%	2.66%	7.51%	-10.06%	0.63%
FSMUX Strategic Advisers Municipal Bond Fund	1.47%	3.14%	2.99%	6.78%	-11.25%	0.39%

Correlation

The correlation between VCITX and FSMUX is 0.77, 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	0.77
Correlation (3Y) Calculated over the trailing 3-year period	0.84
Correlation (All Time) Calculated using the full available price history since Jun 18, 2021	0.88

The correlation between VCITX and FSMUX shifts across timeframes, from 0.77 (1 year) to 0.88 (all time), reflecting how their relationship changes across market environments.

Return for Risk

VCITX vs. FSMUX — Risk / Return Rank

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

VCITX

VCITX Risk / Return Rank: 69
VCITX Sharpe Ratio Rank: 83
VCITX Sortino Ratio Rank: 88
VCITX Omega Ratio Rank: 90
VCITX Calmar Ratio Rank: 43
VCITX Martin Ratio Rank: 41

FSMUX

FSMUX Risk / Return Rank: 79
FSMUX Sharpe Ratio Rank: 83
FSMUX Sortino Ratio Rank: 92
FSMUX Omega Ratio Rank: 92
FSMUX Calmar Ratio Rank: 68
FSMUX Martin Ratio Rank: 58

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.

VCITX vs. FSMUX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard California Long-Term Tax-Exempt Fund Investor Shares (VCITX) and Strategic Advisers Municipal Bond Fund (FSMUX). 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.

	VCITX	FSMUX	Difference
Sharpe ratio: Return per unit of total volatility	2.71	2.69	+0.03
Sortino ratio: Return per unit of downside risk	4.28	4.63	-0.36
Omega ratio: Gain probability vs. loss probability	1.67	1.71	-0.04
Calmar ratio: Return relative to maximum drawdown	2.48	3.15	-0.66
Martin ratio: Return relative to average drawdown	8.85	11.49	-2.65
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VCITX vs. FSMUX - Sharpe Ratio Comparison

The current VCITX Sharpe Ratio is 2.71, which is comparable to the FSMUX Sharpe Ratio of 2.69. The chart below compares the historical Sharpe Ratios of VCITX and FSMUX, 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

	VCITX	FSMUX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.71	2.69	+0.03
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.29	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.56	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.02	0.11	+0.91

Drawdowns

VCITX vs. FSMUX - Drawdown Comparison

The maximum VCITX drawdown since its inception was -22.71%, which is greater than FSMUX's maximum drawdown of -16.27%. Use the drawdown chart below to compare losses from any high point for VCITX and FSMUX.

Drawdown Indicators

	VCITX	FSMUX	Difference
Max Drawdown Largest peak-to-trough decline	-22.71%	-16.27%	-6.44%
Max Drawdown (1Y) Largest decline over 1 year	-3.43%	-2.68%	-0.75%
Max Drawdown (3Y) Largest decline over 3 years	-6.57%	-5.95%	-0.62%
Max Drawdown (5Y) Largest decline over 5 years	-15.79%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-15.79%	—	—
Current Drawdown Current decline from peak	-0.47%	0.00%	-0.47%
Average Drawdown Average peak-to-trough decline	-2.58%	-5.46%	+2.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.96%	1.83%	-0.87%

Volatility

VCITX vs. FSMUX - Volatility Comparison

Vanguard California Long-Term Tax-Exempt Fund Investor Shares (VCITX) and Strategic Advisers Municipal Bond Fund (FSMUX) have volatilities of 1.21% and 1.18%, 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

	VCITX	FSMUX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.21%	1.18%	+0.03%
Volatility (6M) Calculated over the trailing 6-month period	2.39%	2.10%	+0.29%
Volatility (1Y) Calculated over the trailing 1-year period	3.14%	3.13%	+0.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.56%	4.64%	-0.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.56%	4.64%	-0.08%

VCITX vs. FSMUX - Expense Ratio Comparison

VCITX has a 0.17% expense ratio, which is higher than FSMUX's 0.06% 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

VCITX vs. FSMUX - Dividend Comparison

VCITX's dividend yield for the trailing twelve months is around 3.55%, more than FSMUX's 2.99% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FSMUX Strategic Advisers Municipal Bond Fund	2.99%	3.26%	3.74%	3.18%	2.14%	0.99%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VCITX Vanguard California Long-Term Tax-Exempt Fund Investor Shares	3.55%	4.34%	3.85%	2.99%	2.66%	2.56%	3.21%	3.16%	3.32%	3.22%	3.45%	3.50%

Frequently Asked Questions

Can I hold both VCITX and FSMUX in my portfolio?

VCITX and FSMUX have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VCITX or FSMUX?

VCITX has higher volatility (1.21%) compared to FSMUX (1.18%). In terms of maximum drawdown, VCITX dropped -22.71% vs FSMUX's -16.27%.

Which has better risk-adjusted returns?

VCITX currently has the higher Sharpe Ratio (2.71 vs 2.69), 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.