VCITX vs. VCV

Last updated Jun 4, 2026

VCITX (Vanguard California Long-Term Tax-Exempt Fund Investor Shares) is Municipal Bonds fund managed by Vanguard, while VCV (Invesco California Value Municipal Income Trust) is a stock. Over the past 10 years, VCITX returned 2.53%/yr vs 2.45%/yr for VCV. At a 0.24 correlation, their price movements are largely independent.

Performance

VCITX vs. VCV - 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 Invesco California Value Municipal Income Trust (VCV). 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 VCV's -1.63% return. Both investments have delivered pretty close results over the past 10 years, with VCITX having a 2.53% annualized return and VCV not far behind at 2.45%.

VCITX

• 1D: 0.17%
• 1M: 0.92%
• YTD: 1.76%
• 6M: 2.16%
• 1Y: 8.47%
• 3Y*: 4.78%
• 5Y*: 1.34%
• 10Y*: 2.53%

VCV

• 1D: 0.09%
• 1M: 0.89%
• YTD: -1.63%
• 6M: 2.85%
• 1Y: 10.49%
• 3Y*: 10.88%
• 5Y*: 0.50%
• 10Y*: 2.45%

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

VCITX vs. VCV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VCITX Vanguard California Long-Term Tax-Exempt Fund Investor Shares	1.76%	4.90%	2.66%	7.51%	-10.06%	1.46%	5.60%	8.81%	0.67%	6.82%
VCV Invesco California Value Municipal Income Trust	-1.63%	9.44%	18.62%	7.91%	-28.40%	9.65%	7.85%	18.63%	-5.27%	9.01%

Correlation

The correlation between VCITX and VCV is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.35
Correlation (3Y) Calculated over the trailing 3-year period	0.43
Correlation (5Y) Calculated over the trailing 5-year period	0.44
Correlation (10Y) Calculated over the trailing 10-year period	0.39
Correlation (All Time) Calculated using the full available price history since Oct 28, 1994	0.24

The correlation between VCITX and VCV shifts across timeframes, from 0.24 (all time) to 0.44 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

VCITX vs. VCV — 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: 91
VCITX Calmar Ratio Rank: 42
VCITX Martin Ratio Rank: 41

VCV

VCV Risk / Return Rank: 67
VCV Sharpe Ratio Rank: 72
VCV Sortino Ratio Rank: 65
VCV Omega Ratio Rank: 66
VCV Calmar Ratio Rank: 66
VCV Martin Ratio Rank: 67

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. VCV - 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 Invesco California Value Municipal Income Trust (VCV). 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	VCV	Difference
Sharpe ratio: Return per unit of total volatility	2.68	1.01	+1.67
Sortino ratio: Return per unit of downside risk	4.23	1.49	+2.74
Omega ratio: Gain probability vs. loss probability	1.66	1.20	+0.46
Calmar ratio: Return relative to maximum drawdown	2.45	1.27	+1.18
Martin ratio: Return relative to average drawdown	8.75	3.09	+5.65
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. VCV - Sharpe Ratio Comparison

The current VCITX Sharpe Ratio is 2.68, which is higher than the VCV Sharpe Ratio of 1.01. The chart below compares the historical Sharpe Ratios of VCITX and VCV, 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	VCV	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.68	1.01	+1.67
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.30	0.04	+0.26
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.56	0.18	+0.38
Sharpe Ratio (All Time) Calculated using the full available price history	1.02	0.35	+0.68

Drawdowns

VCITX vs. VCV - Drawdown Comparison

The maximum VCITX drawdown since its inception was -22.71%, smaller than the maximum VCV drawdown of -59.02%. Use the drawdown chart below to compare losses from any high point for VCITX and VCV.

Drawdown Indicators

	VCITX	VCV	Difference
Max Drawdown Largest peak-to-trough decline	-22.71%	-59.02%	+36.31%
Max Drawdown (1Y) Largest decline over 1 year	-3.43%	-8.29%	+4.86%
Max Drawdown (3Y) Largest decline over 3 years	-6.57%	-16.99%	+10.42%
Max Drawdown (5Y) Largest decline over 5 years	-15.79%	-38.55%	+22.76%
Max Drawdown (10Y) Largest decline over 10 years	-15.79%	-38.55%	+22.76%
Current Drawdown Current decline from peak	-0.47%	-4.38%	+3.91%
Average Drawdown Average peak-to-trough decline	-2.58%	-8.57%	+5.99%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.96%	3.40%	-2.44%

Volatility

VCITX vs. VCV - Volatility Comparison

The current volatility for Vanguard California Long-Term Tax-Exempt Fund Investor Shares (VCITX) is 1.23%, while Invesco California Value Municipal Income Trust (VCV) has a volatility of 1.85%. This indicates that VCITX experiences smaller price fluctuations and is considered to be less risky than VCV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VCITX	VCV	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.23%	1.85%	-0.62%
Volatility (6M) Calculated over the trailing 6-month period	2.41%	7.22%	-4.81%
Volatility (1Y) Calculated over the trailing 1-year period	3.15%	10.45%	-7.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.56%	12.93%	-8.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.56%	13.80%	-9.24%

Dividends

VCITX vs. VCV - Dividend Comparison

VCITX's dividend yield for the trailing twelve months is around 3.55%, less than VCV's 7.29% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VCV Invesco California Value Municipal Income Trust	7.29%	6.96%	5.76%	4.16%	5.46%	4.09%	4.07%	4.43%	5.46%	5.10%	5.86%	5.98%

Frequently Asked Questions

Can I hold both VCITX and VCV in my portfolio?

VCITX and VCV have a correlation of 0.35, 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 VCV?

VCV has higher volatility (1.85%) compared to VCITX (1.23%). In terms of maximum drawdown, VCITX dropped -22.71% vs VCV's -59.02%.

Which has better risk-adjusted returns?

VCITX currently has the higher Sharpe Ratio (2.68 vs 1.01), 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.