VMLTX vs. FMNDX

Last updated Jun 24, 2026

VMLTX (Vanguard Limited-Term Tax-Exempt Fund Investor Shares) and FMNDX (Fidelity Conservative Income Municipal Bond Fund Institutional Class) are both Municipal Bonds funds. Over the past 10 years, VMLTX returned 2.08%/yr vs 1.60%/yr for FMNDX. At a 0.46 correlation, their price movements are largely independent. VMLTX charges 0.17%/yr vs 0.25%/yr for FMNDX.

Performance

VMLTX vs. FMNDX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Limited-Term Tax-Exempt Fund Investor Shares (VMLTX) and Fidelity Conservative Income Municipal Bond Fund Institutional Class (FMNDX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

As of year-to-date, both investments have demonstrated similar returns, with VMLTX at 1.01% and FMNDX at 1.01%. Over the past 10 years, VMLTX has outperformed FMNDX with an annualized return of 2.08%, while FMNDX has yielded a comparatively lower 1.60% annualized return.

VMLTX

• 1D: 0.00%
• 1M: 0.72%
• YTD: 1.01%
• 6M: 1.37%
• 1Y: 3.98%
• 3Y*: 4.14%
• 5Y*: 2.13%
• 10Y*: 2.08%

FMNDX

• 1D: 0.00%
• 1M: 0.32%
• YTD: 1.01%
• 6M: 1.37%
• 1Y: 2.96%
• 3Y*: 3.16%
• 5Y*: 2.13%
• 10Y*: 1.60%

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

VMLTX vs. FMNDX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VMLTX Vanguard Limited-Term Tax-Exempt Fund Investor Shares	1.01%	5.39%	3.14%	4.19%	-2.98%	0.83%	3.30%	4.11%	1.56%	2.02%
FMNDX Fidelity Conservative Income Municipal Bond Fund Institutional Class	1.01%	3.31%	3.04%	3.37%	-0.09%	0.03%	0.86%	2.00%	1.58%	1.10%

Correlation

The correlation between VMLTX and FMNDX is 0.50, 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	0.50
Correlation (3Y) Calculated over the trailing 3-year period	0.53
Correlation (5Y) Calculated over the trailing 5-year period	0.52
Correlation (10Y) Calculated over the trailing 10-year period	0.48
Correlation (All Time) Calculated using the full available price history since Oct 23, 2013	0.46

The correlation between VMLTX and FMNDX has been stable across timeframes, ranging from 0.46 to 0.53 - a consistent structural relationship.

Return for Risk

VMLTX vs. FMNDX — Risk / Return Rank

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

VMLTX

VMLTX Risk / Return Rank: 75
VMLTX Sharpe Ratio Rank: 88
VMLTX Sortino Ratio Rank: 96
VMLTX Omega Ratio Rank: 97
VMLTX Calmar Ratio Rank: 51
VMLTX Martin Ratio Rank: 42

FMNDX

FMNDX Risk / Return Rank: 98
FMNDX Sharpe Ratio Rank: 96
FMNDX Sortino Ratio Rank: 99
FMNDX Omega Ratio Rank: 99
FMNDX Calmar Ratio Rank: 99
FMNDX Martin Ratio Rank: 99

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.

VMLTX vs. FMNDX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Limited-Term Tax-Exempt Fund Investor Shares (VMLTX) and Fidelity Conservative Income Municipal Bond Fund Institutional Class (FMNDX). 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.

	VMLTX	FMNDX	Difference
Sharpe ratio: Return per unit of total volatility	2.68	3.17	-0.49
Sortino ratio: Return per unit of downside risk	4.88	8.51	-3.63
Omega ratio: Gain probability vs. loss probability	1.86	3.45	-1.59
Calmar ratio: Return relative to maximum drawdown	2.61	9.99	-7.39
Martin ratio: Return relative to average drawdown	8.49	41.56	-33.07

VMLTX vs. FMNDX - Sharpe Ratio Comparison

The current VMLTX Sharpe Ratio is 2.68, which is comparable to the FMNDX Sharpe Ratio of 3.17. The chart below compares the historical Sharpe Ratios of VMLTX and FMNDX, 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

VMLTX vs. FMNDX - Drawdown Comparison

The maximum VMLTX drawdown since its inception was -6.41%, which is greater than FMNDX's maximum drawdown of -1.69%. Use the drawdown chart below to compare losses from any high point for VMLTX and FMNDX.

Drawdown Indicators

	VMLTX	FMNDX	Difference
Max Drawdown Largest peak-to-trough decline	-6.41%	-1.69%	-4.72%
Max Drawdown (1Y) Largest decline over 1 year	-1.53%	-0.30%	-1.23%
Max Drawdown (3Y) Largest decline over 3 years	-2.02%	-1.09%	-0.93%
Max Drawdown (5Y) Largest decline over 5 years	-5.69%	-1.09%	-4.60%
Max Drawdown (10Y) Largest decline over 10 years	-6.41%	-1.69%	-4.72%
Current Drawdown Current decline from peak	-0.40%	0.00%	-0.40%
Average Drawdown Average peak-to-trough decline	-0.48%	-0.10%	-0.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.47%	0.07%	+0.40%

Volatility

VMLTX vs. FMNDX - Volatility Comparison

Vanguard Limited-Term Tax-Exempt Fund Investor Shares (VMLTX) has a higher volatility of 0.37% compared to Fidelity Conservative Income Municipal Bond Fund Institutional Class (FMNDX) at 0.24%. This indicates that VMLTX's price experiences larger fluctuations and is considered to be riskier than FMNDX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VMLTX	FMNDX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.37%	0.24%	+0.13%
Volatility (6M) Calculated over the trailing 6-month period	1.13%	0.63%	+0.50%
Volatility (1Y) Calculated over the trailing 1-year period	1.49%	0.94%	+0.55%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.86%	1.06%	+0.80%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.93%	0.91%	+1.02%

VMLTX vs. FMNDX - Expense Ratio Comparison

VMLTX has a 0.17% expense ratio, which is lower than FMNDX's 0.25% 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

VMLTX vs. FMNDX - Dividend Comparison

VMLTX's dividend yield for the trailing twelve months is around 3.07%, more than FMNDX's 2.82% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FMNDX Fidelity Conservative Income Municipal Bond Fund Institutional Class	2.82%	2.95%	2.99%	2.60%	0.61%	0.23%	0.85%	1.58%	1.46%	1.00%	0.75%	0.38%
VMLTX Vanguard Limited-Term Tax-Exempt Fund Investor Shares	3.07%	3.75%	3.27%	2.30%	1.56%	1.64%	1.62%	2.01%	1.81%	1.55%	1.52%	1.50%

Frequently Asked Questions

Can I hold both VMLTX and FMNDX in my portfolio?

VMLTX and FMNDX have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VMLTX or FMNDX?

VMLTX has higher volatility (0.37%) compared to FMNDX (0.24%). In terms of maximum drawdown, VMLTX dropped -6.41% vs FMNDX's -1.69%.

Which has better risk-adjusted returns?

FMNDX currently has the higher Sharpe Ratio (3.17 vs 2.68), 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.