VMLTX vs. VMLUX

Last updated Jun 4, 2026

VMLTX (Vanguard Limited-Term Tax-Exempt Fund Investor Shares) and VMLUX (Vanguard Limited-Term Tax-Exempt Fund Admiral Shares) are both Municipal Bonds funds from Vanguard. Over the past 10 years, VMLTX returned 2.13%/yr vs 2.15%/yr for VMLUX. With a 1.00 correlation, they move nearly in lockstep. VMLTX charges 0.17%/yr vs 0.09%/yr for VMLUX.

Performance

VMLTX vs. VMLUX - 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 Vanguard Limited-Term Tax-Exempt Fund Admiral Shares (VMLUX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with VMLTX having a 1.01% return and VMLUX slightly higher at 1.05%. Both investments have delivered pretty close results over the past 10 years, with VMLTX having a 2.13% annualized return and VMLUX not far ahead at 2.15%.

VMLTX

• 1D: 0.09%
• 1M: 0.35%
• YTD: 1.01%
• 6M: 1.37%
• 1Y: 4.36%
• 3Y*: 4.24%
• 5Y*: 2.12%
• 10Y*: 2.13%

VMLUX

• 1D: 0.09%
• 1M: 0.36%
• YTD: 1.05%
• 6M: 1.41%
• 1Y: 4.44%
• 3Y*: 4.34%
• 5Y*: 2.21%
• 10Y*: 2.15%

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

VMLTX vs. VMLUX - 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%
VMLUX Vanguard Limited-Term Tax-Exempt Fund Admiral Shares	1.05%	5.50%	3.25%	4.29%	-2.90%	0.23%	3.38%	4.21%	1.64%	2.13%

Correlation

The correlation between VMLTX and VMLUX is 1.00 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	1.00
Correlation (3Y) Calculated over the trailing 3-year period	1.00
Correlation (5Y) Calculated over the trailing 5-year period	1.00
Correlation (10Y) Calculated over the trailing 10-year period	1.00
Correlation (All Time) Calculated using the full available price history since Feb 13, 2001	1.00

The correlation between VMLTX and VMLUX has been stable across timeframes, ranging from 1.00 to 1.00 - a consistent structural relationship.

Return for Risk

VMLTX vs. VMLUX — Risk / Return Rank

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

VMLTX

VMLTX Risk / Return Rank: 77
VMLTX Sharpe Ratio Rank: 89
VMLTX Sortino Ratio Rank: 96
VMLTX Omega Ratio Rank: 97
VMLTX Calmar Ratio Rank: 56
VMLTX Martin Ratio Rank: 45

VMLUX

VMLUX Risk / Return Rank: 77
VMLUX Sharpe Ratio Rank: 90
VMLUX Sortino Ratio Rank: 96
VMLUX Omega Ratio Rank: 97
VMLUX Calmar Ratio Rank: 57
VMLUX Martin Ratio Rank: 47

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. VMLUX - 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 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.

	VMLTX	VMLUX	Difference
Sharpe ratio: Return per unit of total volatility	2.93	2.96	-0.03
Sortino ratio: Return per unit of downside risk	5.38	5.48	-0.10
Omega ratio: Gain probability vs. loss probability	1.96	1.98	-0.02
Calmar ratio: Return relative to maximum drawdown	2.86	2.91	-0.06
Martin ratio: Return relative to average drawdown	9.49	9.76	-0.26
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VMLTX vs. VMLUX - Sharpe Ratio Comparison

The current VMLTX Sharpe Ratio is 2.93, which is comparable to the VMLUX Sharpe Ratio of 2.96. The chart below compares the historical Sharpe Ratios of VMLTX 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.

Sharpe Ratios by Period

	VMLTX	VMLUX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.93	2.96	-0.03
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.14	1.18	-0.04
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.10	1.12	-0.01
Sharpe Ratio (All Time) Calculated using the full available price history	1.93	1.48	+0.45

Drawdowns

VMLTX vs. VMLUX - Drawdown Comparison

The maximum VMLTX drawdown since its inception was -6.41%, roughly equal to the maximum VMLUX drawdown of -6.41%. Use the drawdown chart below to compare losses from any high point for VMLTX and VMLUX.

Drawdown Indicators

	VMLTX	VMLUX	Difference
Max Drawdown Largest peak-to-trough decline	-6.41%	-6.41%	0.00%
Max Drawdown (1Y) Largest decline over 1 year	-1.53%	-1.53%	0.00%
Max Drawdown (3Y) Largest decline over 3 years	-2.02%	-2.02%	0.00%
Max Drawdown (5Y) Largest decline over 5 years	-5.69%	-5.60%	-0.09%
Max Drawdown (10Y) Largest decline over 10 years	-6.41%	-6.41%	0.00%
Current Drawdown Current decline from peak	-0.40%	-0.38%	-0.02%
Average Drawdown Average peak-to-trough decline	-0.48%	-0.54%	+0.06%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.46%	0.46%	0.00%

Volatility

VMLTX vs. VMLUX - Volatility Comparison

Vanguard Limited-Term Tax-Exempt Fund Investor Shares (VMLTX) and Vanguard Limited-Term Tax-Exempt Fund Admiral Shares (VMLUX) have volatilities of 0.46% and 0.46%, 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

	VMLTX	VMLUX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.46%	0.46%	0.00%
Volatility (6M) Calculated over the trailing 6-month period	1.14%	1.15%	-0.01%
Volatility (1Y) Calculated over the trailing 1-year period	1.49%	1.51%	-0.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.86%	1.87%	-0.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.93%	1.93%	0.00%

VMLTX vs. VMLUX - Expense Ratio Comparison

VMLTX has a 0.17% 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

VMLTX vs. VMLUX - Dividend Comparison

VMLTX's dividend yield for the trailing twelve months is around 3.07%, less than VMLUX's 3.16% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VMLUX Vanguard Limited-Term Tax-Exempt Fund Admiral Shares	3.16%	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 VMLTX and VMLUX in my portfolio?

With a correlation of 1.00, VMLTX and VMLUX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VMLTX or VMLUX?

VMLUX has higher volatility (0.46%) compared to VMLTX (0.46%). In terms of maximum drawdown, VMLTX dropped -6.41% vs VMLUX's -6.41%.

Which has better risk-adjusted returns?

VMLUX currently has the higher Sharpe Ratio (2.96 vs 2.93), 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.