VMLTX vs. VTEAX
VMLTX (Vanguard Limited-Term Tax-Exempt Fund Investor Shares) and VTEAX (Vanguard Tax-Exempt Bond Index Fund Admiral Shares) are both Municipal Bonds funds from Vanguard. Over the past 10 years, VMLTX returned 2.13%/yr vs 2.13%/yr for VTEAX. A 0.70 correlation means they provide meaningful diversification when combined. VMLTX charges 0.17%/yr vs 0.09%/yr for VTEAX.
Performance
VMLTX vs. VTEAX - Performance Comparison
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Returns By Period
In the year-to-date period, VMLTX achieves a 1.01% return, which is significantly lower than VTEAX's 1.45% return. Over a longer period, both investments have demonstrated similar performance, with their 10-year annualized returns being quite close: VMLTX at 2.13% and VTEAX at 2.13%.
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%
VTEAX
- 1D
- 0.20%
- 1M
- 0.62%
- YTD
- 1.45%
- 6M
- 1.84%
- 1Y
- 7.07%
- 3Y*
- 3.62%
- 5Y*
- 0.97%
- 10Y*
- 2.13%
VMLTX vs. VTEAX - 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% |
VTEAX Vanguard Tax-Exempt Bond Index Fund Admiral Shares | 1.45% | 3.67% | 1.63% | 6.39% | -8.21% | 1.43% | 4.97% | 7.45% | 0.99% | 4.94% |
Correlation
The correlation between VMLTX and VTEAX is 0.62, 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 | 0.62 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.74 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.77 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.71 |
Correlation (All Time) Calculated using the full available price history since Sep 1, 2015 | 0.70 |
The correlation between VMLTX and VTEAX shifts across timeframes, from 0.62 (1 year) to 0.77 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
VMLTX vs. VTEAX — Risk / Return Rank
VMLTX
VTEAX
VMLTX vs. VTEAX - 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 Tax-Exempt Bond Index Fund Admiral Shares (VTEAX). 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 | VTEAX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.04 | ||
| Sortino ratioReturn per unit of downside risk | +0.98 | ||
| Omega ratioGain probability vs. loss probability | 1.96 | 1.75 | +0.21 |
| Calmar ratioReturn relative to maximum drawdown | 2.86 | 2.66 | +0.20 |
| Martin ratioReturn relative to average drawdown | 9.49 | 9.24 | +0.25 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VMLTX | VTEAX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.93 | 2.97 | -0.04 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 1.14 | 0.27 | +0.87 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.10 | 0.58 | +0.52 |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.93 | 0.70 | +1.23 |
Drawdowns
VMLTX vs. VTEAX - Drawdown Comparison
The maximum VMLTX drawdown since its inception was -6.41%, smaller than the maximum VTEAX drawdown of -12.75%. Use the drawdown chart below to compare losses from any high point for VMLTX and VTEAX.
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Drawdown Indicators
| VMLTX | VTEAX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.41% | -12.75% | +6.34% |
Max Drawdown (1Y)Largest decline over 1 year | -1.53% | -2.65% | +1.12% |
Max Drawdown (3Y)Largest decline over 3 years | -2.02% | -5.46% | +3.44% |
Max Drawdown (5Y)Largest decline over 5 years | -5.69% | -12.75% | +7.06% |
Max Drawdown (10Y)Largest decline over 10 years | -6.41% | -12.75% | +6.34% |
Current DrawdownCurrent decline from peak | -0.40% | -0.55% | +0.15% |
Average DrawdownAverage peak-to-trough decline | -0.48% | -2.26% | +1.78% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.46% | 0.76% | -0.30% |
Volatility
VMLTX vs. VTEAX - Volatility Comparison
The current volatility for Vanguard Limited-Term Tax-Exempt Fund Investor Shares (VMLTX) is 0.46%, while Vanguard Tax-Exempt Bond Index Fund Admiral Shares (VTEAX) has a volatility of 0.99%. This indicates that VMLTX experiences smaller price fluctuations and is considered to be less risky than VTEAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VMLTX | VTEAX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.46% | 0.99% | -0.53% |
Volatility (6M)Calculated over the trailing 6-month period | 1.14% | 1.85% | -0.71% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.49% | 2.38% | -0.89% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.86% | 3.61% | -1.75% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.93% | 3.67% | -1.74% |
VMLTX vs. VTEAX - Expense Ratio Comparison
VMLTX has a 0.17% expense ratio, which is higher than VTEAX'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. VTEAX - Dividend Comparison
VMLTX's dividend yield for the trailing twelve months is around 3.07%, less than VTEAX's 3.32% 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% |
VTEAX Vanguard Tax-Exempt Bond Index Fund Admiral Shares | 3.32% | 3.26% | 3.36% | 2.98% | 2.05% | 1.60% | 1.97% | 2.27% | 2.24% | 1.95% | 1.67% | 0.59% |
Frequently Asked Questions
VMLTX and VTEAX have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTEAX has higher volatility (0.99%) compared to VMLTX (0.46%). In terms of maximum drawdown, VMLTX dropped -6.41% vs VTEAX's -12.75%.
VTEAX currently has the higher Sharpe Ratio (2.97 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.
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