VCRM vs. VMLUX

Last updated Aug 1, 2026

VCRM (Vanguard Core Tax-Exempt Bond ETF) and VMLUX (Vanguard Limited-Term Tax-Exempt Fund Admiral Shares) are both Municipal Bonds funds from Vanguard. VCRM is passively managed, while VMLUX is actively managed. Over the past year, VCRM returned 5.74% vs 2.48% for VMLUX. Their 0.63 correlation means they have sometimes moved together and sometimes differently. VCRM charges 0.12%/yr vs 0.09%/yr for VMLUX.

Performance

VCRM vs. VMLUX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Core Tax-Exempt Bond ETF (VCRM) 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, VCRM achieves a 1.09% return, which is significantly higher than VMLUX's 0.67% return.

VCRM

• 1D: -0.02%
• 1M: -1.65%
• 6M: 0.34%
• YTD: 1.09%
• 1Y: 5.74%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 3.26%

VMLUX

• 1D: 0.00%
• 1M: -0.73%
• 6M: -0.04%
• YTD: 0.67%
• 1Y: 2.48%
• 3Y*: 4.01%
• 5Y*: 2.05%
• 10Y*: 2.03%
• ALL TIME*: 2.41%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
VCRM Vanguard Core Tax-Exempt Bond ETF	$17.32M	$17.04M	$19.24M
VMLUX Vanguard Limited-Term Tax-Exempt Fund Admiral Shares	$0.00	$0.00	$0.00

VCRM vs. VMLUX - Yearly Performance Comparison

	2026 (YTD)	2025	2024
VCRM Vanguard Core Tax-Exempt Bond ETF	1.09%	4.91%	-0.45%
VMLUX Vanguard Limited-Term Tax-Exempt Fund Admiral Shares	0.67%	5.50%	0.64%

Correlation

The correlation between VCRM and VMLUX is 0.58, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.58
Correlation (All Time) Calculated using the full available price history since Nov 21, 2024	0.63

The correlation between VCRM and VMLUX has been stable across timeframes, ranging from 0.58 to 0.63 - a consistent structural relationship.

Return for Risk

VCRM vs. VMLUX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VCRM

VCRM Risk / Return Rank: 82
VCRM Sharpe Ratio Rank: 88
VCRM Sortino Ratio Rank: 89
VCRM Omega Ratio Rank: 93
VCRM Calmar Ratio Rank: 70
VCRM Martin Ratio Rank: 70

VMLUX

VMLUX Risk / Return Rank: 74
VMLUX Sharpe Ratio Rank: 82
VMLUX Sortino Ratio Rank: 89
VMLUX Omega Ratio Rank: 94
VMLUX Calmar Ratio Rank: 60
VMLUX Martin Ratio Rank: 45

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VCRM vs. VMLUX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Core Tax-Exempt Bond ETF (VCRM) 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.

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.

	VCRM	VMLUX	Difference
Sharpe ratio: Return per unit of total volatility	2.15	1.94	+0.22
Sortino ratio: Return per unit of downside risk	3.09	3.31	-0.22
Omega ratio: Gain probability vs. loss probability	1.47	1.56	-0.09
Calmar ratio: Return relative to maximum drawdown	2.43	1.98	+0.45
Martin ratio: Return relative to average drawdown	8.53	6.21	+2.32

VCRM vs. VMLUX - Sharpe Ratio Comparison

The current VCRM Sharpe Ratio is 2.15, which is comparable to the VMLUX Sharpe Ratio of 1.94. The chart below compares the historical Sharpe Ratios of VCRM 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.

Drawdowns

VCRM vs. VMLUX - Drawdown Comparison

The maximum VCRM drawdown since its inception was -4.12%, smaller than the maximum VMLUX drawdown of -6.41%. Use the drawdown chart below to compare losses from any high point for VCRM and VMLUX.

Drawdown Indicators

	VCRM	VMLUX	Difference
Max Drawdown Largest peak-to-trough decline	-4.12%	-6.41%	+2.29%
Max Drawdown (1Y) Largest decline over 1 year	-2.72%	-1.53%	-1.19%
Max Drawdown (3Y) Largest decline over 3 years	—	-2.02%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-5.60%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-6.41%	—
Current Drawdown Current decline from peak	-1.65%	-0.75%	-0.90%
Average Drawdown Average peak-to-trough decline	-1.07%	-0.54%	-0.53%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.78%	0.49%	+0.29%

Volatility

VCRM vs. VMLUX - Volatility Comparison

Vanguard Core Tax-Exempt Bond ETF (VCRM) has a higher volatility of 1.04% compared to Vanguard Limited-Term Tax-Exempt Fund Admiral Shares (VMLUX) at 0.47%. This indicates that VCRM'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

	VCRM	VMLUX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.04%	0.47%	+0.57%
Volatility (6M) Calculated over the trailing 6-month period	2.39%	1.23%	+1.16%
Volatility (1Y) Calculated over the trailing 1-year period	3.08%	1.57%	+1.51%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.81%	1.89%	+1.92%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.81%	1.94%	+1.87%

VCRM vs. VMLUX - Expense Ratio Comparison

VCRM has a 0.12% expense ratio, which is higher than VMLUX's 0.09% 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

VCRM vs. VMLUX - Dividend Comparison

VCRM's dividend yield for the trailing twelve months is around 3.69%, more than VMLUX's 2.93% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VCRM Vanguard Core Tax-Exempt Bond ETF	3.41%	3.42%	0.40%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VMLUX Vanguard Limited-Term Tax-Exempt Fund Admiral Shares	2.93%	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 VCRM and VMLUX in my portfolio?

VCRM and VMLUX have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VCRM or VMLUX?

VCRM has higher volatility (1.04%) compared to VMLUX (0.47%). In terms of maximum drawdown, VCRM dropped -4.12% vs VMLUX's -6.41%.

Which has better risk-adjusted returns?

VCRM currently has the higher Sharpe Ratio (2.15 vs 1.94), 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.