VMLTX vs. VSMSX
VMLTX (Vanguard Limited-Term Tax-Exempt Fund Investor Shares) and VSMSX (Vanguard S&P Small-Cap 600 Index Fund Institutional Shares) are both mutual funds - VMLTX is a Municipal Bonds fund managed by Vanguard, while VSMSX is a Small Cap Blend Equities fund managed by Vanguard. Over the past 10 years, VMLTX returned 2.02%/yr vs 10.89%/yr for VSMSX. Their -0.02 correlation means they have often moved in opposite directions in the past. VMLTX charges 0.17%/yr vs 0.08%/yr for VSMSX.
Performance
VMLTX vs. VSMSX - 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 VSMSX's 23.59% return. Over the past 10 years, VMLTX has underperformed VSMSX with an annualized return of 2.02%, while VSMSX has yielded a comparatively higher 10.89% 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%
VSMSX
- 1D
- 1.68%
- 1M
- 0.98%
- 6M
- 15.85%
- YTD
- 23.59%
- 1Y
- 35.99%
- 3Y*
- 14.56%
- 5Y*
- 8.10%
- 10Y*
- 10.89%
- ALL TIME*
- 12.08%
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. VSMSX - 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% |
VSMSX Vanguard S&P Small-Cap 600 Index Fund Institutional Shares | 23.59% | 6.04% | 7.20% | 17.57% | -16.19% | 26.72% | 11.46% | 22.73% | -8.51% | 13.39% |
Correlation
The correlation between VMLTX and VSMSX is 0.19, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.19 |
Correlation (3Y) Balances recent behavior with more history. | 0.12 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.10 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.02 |
Correlation (All Time) Calculated using the full available price history since Jan 3, 2012 | -0.02 |
The correlation between VMLTX and VSMSX shifts across timeframes, from -0.02 (all time) to 0.19 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VMLTX vs. VSMSX — Risk / Return Rank
VMLTX
VSMSX
VMLTX vs. VSMSX - 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 S&P Small-Cap 600 Index Fund Institutional Shares (VSMSX). 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 | VSMSX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.62 | ||
| Sortino ratioReturn per unit of downside risk | -0.59 | ||
| Omega ratioGain probability vs. loss probability | 1.44 | 1.38 | +0.05 |
| Calmar ratioReturn relative to maximum drawdown | 1.58 | 4.41 | -2.84 |
| Martin ratioReturn relative to average drawdown | 4.82 | 15.13 | -10.31 |
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Drawdowns
VMLTX vs. VSMSX - Drawdown Comparison
The maximum VMLTX drawdown since its inception was -6.41%, smaller than the maximum VSMSX drawdown of -44.42%. Use the drawdown chart below to compare losses from any high point for VMLTX and VSMSX.
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Drawdown Indicators
| VMLTX | VSMSX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.41% | -44.42% | +38.01% |
Max Drawdown (1Y)Largest decline over 1 year | -1.53% | -8.69% | +7.16% |
Max Drawdown (3Y)Largest decline over 3 years | -2.02% | -27.93% | +25.91% |
Max Drawdown (5Y)Largest decline over 5 years | -5.61% | -27.93% | +22.32% |
Max Drawdown (10Y)Largest decline over 10 years | -6.41% | -44.42% | +38.01% |
Current DrawdownCurrent decline from peak | -0.77% | -0.25% | -0.52% |
Average DrawdownAverage peak-to-trough decline | -0.48% | -7.34% | +6.86% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.50% | 2.53% | -2.03% |
Volatility
VMLTX vs. VSMSX - Volatility Comparison
The current volatility for Vanguard Limited-Term Tax-Exempt Fund Investor Shares (VMLTX) is 0.47%, while Vanguard S&P Small-Cap 600 Index Fund Institutional Shares (VSMSX) has a volatility of 3.77%. This indicates that VMLTX experiences smaller price fluctuations and is considered to be less risky than VSMSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VMLTX | VSMSX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.47% | 3.77% | -3.30% |
Volatility (6M)Calculated over the trailing 6-month period | 1.20% | 11.75% | -10.55% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.52% | 17.36% | -15.84% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.88% | 21.34% | -19.46% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.94% | 23.16% | -21.22% |
VMLTX vs. VSMSX - Expense Ratio Comparison
VMLTX has a 0.17% expense ratio, which is higher than VSMSX's 0.08% 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. VSMSX - Dividend Comparison
VMLTX's dividend yield for the trailing twelve months is around 2.86%, more than VSMSX's 1.13% 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% |
VSMSX Vanguard S&P Small-Cap 600 Index Fund Institutional Shares | 1.13% | 1.39% | 1.49% | 1.47% | 1.52% | 1.17% | 1.10% | 1.38% | 1.39% | 1.11% | 1.00% | 1.33% |
Frequently Asked Questions
VMLTX and VSMSX have a correlation of 0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VSMSX has higher volatility (3.77%) compared to VMLTX (0.47%). In terms of maximum drawdown, VMLTX dropped -6.41% vs VSMSX's -44.42%.
VSMSX currently has the higher Sharpe Ratio (2.21 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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