VMLTX vs. VSBSX
VMLTX (Vanguard Limited-Term Tax-Exempt Fund Investor Shares) and VSBSX (Vanguard Short-Term Treasury Index Fund Admiral Shares) are both mutual funds - VMLTX is a Municipal Bonds fund managed by Vanguard, while VSBSX is a Government Bonds fund tracking the Spliced Bloomberg U.S. Treasury 1-3 Year Index. Over the past 10 years, VMLTX returned 2.02%/yr vs 1.76%/yr for VSBSX. Their 0.30 correlation means their historical movements had little consistent relationship. VMLTX charges 0.17%/yr vs 0.06%/yr for VSBSX.
Performance
VMLTX vs. VSBSX - Performance Comparison
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Returns By Period
In the year-to-date period, VMLTX achieves a 0.63% return, which is significantly lower than VSBSX's 0.81% return. Over the past 10 years, VMLTX has outperformed VSBSX with an annualized return of 2.02%, while VSBSX has yielded a comparatively lower 1.76% annualized return.
VMLTX
- 1D
- 0.09%
- 1M
- -0.73%
- 6M
- -0.16%
- YTD
- 0.63%
- 1Y
- 2.41%
- 3Y*
- 4.04%
- 5Y*
- 1.96%
- 10Y*
- 2.02%
- ALL TIME*
- 3.27%
VSBSX
- 1D
- 0.05%
- 1M
- 0.16%
- 6M
- 0.65%
- YTD
- 0.81%
- 1Y
- 2.61%
- 3Y*
- 4.32%
- 5Y*
- 1.92%
- 10Y*
- 1.76%
- ALL TIME*
- 1.41%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $0.00 | $0.00 | $0.00 | |
| $0.00 | $0.00 | $0.00 |
VMLTX vs. VSBSX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VMLTX Vanguard Limited-Term Tax-Exempt Fund Investor Shares | 0.63% | 5.39% | 3.14% | 4.19% | -2.98% | 0.83% | 3.30% | 4.11% | 1.56% | 2.02% |
VSBSX Vanguard Short-Term Treasury Index Fund Admiral Shares | 0.81% | 5.08% | 4.39% | 4.23% | -3.87% | -0.69% | 3.09% | 3.51% | 1.52% | 0.35% |
Correlation
The correlation between VMLTX and VSBSX is 0.37, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.37 |
Correlation (3Y) Balances recent behavior with more history. | 0.37 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.36 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.32 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | 0.30 |
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Return for Risk
VMLTX vs. VSBSX — Risk / Return Rank
VMLTX
VSBSX
VMLTX vs. VSBSX - 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 Short-Term Treasury Index Fund Admiral Shares (VSBSX). 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 | VSBSX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.60 | ||
| Sortino ratioReturn per unit of downside risk | -0.65 | ||
| Omega ratioGain probability vs. loss probability | 1.44 | 1.43 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 1.58 | 3.20 | -1.62 |
| Martin ratioReturn relative to average drawdown | 4.82 | 12.75 | -7.92 |
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Drawdowns
VMLTX vs. VSBSX - Drawdown Comparison
The maximum VMLTX drawdown since its inception was -6.41%, which is greater than VSBSX's maximum drawdown of -5.77%. Use the drawdown chart below to compare losses from any high point for VMLTX and VSBSX.
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Drawdown Indicators
| VMLTX | VSBSX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.41% | -5.77% | -0.64% |
Max Drawdown (1Y)Largest decline over 1 year | -1.53% | -0.84% | -0.69% |
Max Drawdown (3Y)Largest decline over 3 years | -2.02% | -0.84% | -1.18% |
Max Drawdown (5Y)Largest decline over 5 years | -5.61% | -5.72% | +0.11% |
Max Drawdown (10Y)Largest decline over 10 years | -6.41% | -5.77% | -0.64% |
Current DrawdownCurrent decline from peak | -0.77% | 0.00% | -0.77% |
Average DrawdownAverage peak-to-trough decline | -0.48% | -0.59% | +0.11% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.50% | 0.21% | +0.29% |
Volatility
VMLTX vs. VSBSX - Volatility Comparison
Vanguard Limited-Term Tax-Exempt Fund Investor Shares (VMLTX) has a higher volatility of 0.47% compared to Vanguard Short-Term Treasury Index Fund Admiral Shares (VSBSX) at 0.36%. This indicates that VMLTX's price experiences larger fluctuations and is considered to be riskier than VSBSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VMLTX | VSBSX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.47% | 0.36% | +0.11% |
Volatility (6M)Calculated over the trailing 6-month period | 1.20% | 0.99% | +0.21% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.52% | 1.22% | +0.30% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.88% | 1.96% | -0.08% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.94% | 1.54% | +0.40% |
VMLTX vs. VSBSX - Expense Ratio Comparison
VMLTX has a 0.17% expense ratio, which is higher than VSBSX'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
VMLTX vs. VSBSX - Dividend Comparison
VMLTX's dividend yield for the trailing twelve months is around 2.86%, less than VSBSX's 3.80% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VMLTX Vanguard Limited-Term Tax-Exempt Fund Investor Shares | 2.86% | 3.75% | 3.27% | 2.30% | 1.56% | 1.64% | 1.62% | 2.01% | 1.81% | 1.55% | 1.52% | 1.50% |
VSBSX Vanguard Short-Term Treasury Index Fund Admiral Shares | 3.80% | 3.98% | 4.50% | 3.29% | 1.12% | 0.63% | 1.72% | 2.26% | 1.80% | 1.10% | 0.76% | 0.71% |
Frequently Asked Questions
VMLTX and VSBSX have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VMLTX has higher volatility (0.47%) compared to VSBSX (0.36%). In terms of maximum drawdown, VMLTX dropped -6.41% vs VSBSX's -5.77%.
VSBSX currently has the higher Sharpe Ratio (2.19 vs 1.60), 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.
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