VMLTX vs. VTES
VMLTX (Vanguard Limited-Term Tax-Exempt Fund Investor Shares) and VTES (Vanguard Short-Term Tax-Exempt Bond ETF) are both Municipal Bonds funds from Vanguard. Over the past 3 years, VMLTX returned 4.04%/yr vs 3.09%/yr for VTES. Their 0.63 correlation means they have sometimes moved together and sometimes differently. VMLTX charges 0.17%/yr vs 0.07%/yr for VTES.
Performance
VMLTX vs. VTES - Performance Comparison
Loading charts...
Returns By Period
The year-to-date returns for both stocks are quite close, with VMLTX having a 0.63% return and VTES slightly lower at 0.60%.
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%
VTES
- 1D
- 0.17%
- 1M
- -0.38%
- 6M
- -0.20%
- YTD
- 0.60%
- 1Y
- 1.95%
- 3Y*
- 3.09%
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- 2.92%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $0.00 | $0.00 | $0.00 | |
| $19.93M | $19.06M | $17.45M |
VMLTX vs. VTES - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
VMLTX Vanguard Limited-Term Tax-Exempt Fund Investor Shares | 0.63% | 5.39% | 3.14% | 3.92% |
VTES Vanguard Short-Term Tax-Exempt Bond ETF | 0.60% | 4.19% | 1.85% | 3.32% |
Correlation
The correlation between VMLTX and VTES is 0.63, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.63 |
Correlation (3Y) Balances recent behavior with more history. | 0.62 |
Correlation (All Time) Calculated using the full available price history since Mar 9, 2023 | 0.63 |
The correlation between VMLTX and VTES has been stable across timeframes, ranging from 0.62 to 0.63 - a consistent structural relationship.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
VMLTX vs. VTES — Risk / Return Rank
VMLTX
VTES
VMLTX vs. VTES - 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 Tax-Exempt Bond ETF (VTES). 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 | VTES | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.06 | ||
| Sortino ratioReturn per unit of downside risk | +0.55 | ||
| Omega ratioGain probability vs. loss probability | 1.44 | 1.31 | +0.12 |
| Calmar ratioReturn relative to maximum drawdown | 1.58 | 1.33 | +0.24 |
| Martin ratioReturn relative to average drawdown | 4.82 | 3.52 | +1.30 |
Loading charts...
Drawdowns
VMLTX vs. VTES - Drawdown Comparison
The maximum VMLTX drawdown since its inception was -6.41%, which is greater than VTES's maximum drawdown of -2.42%. Use the drawdown chart below to compare losses from any high point for VMLTX and VTES.
Loading charts...
Drawdown Indicators
| VMLTX | VTES | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.41% | -2.42% | -3.99% |
Max Drawdown (1Y)Largest decline over 1 year | -1.53% | -1.47% | -0.06% |
Max Drawdown (3Y)Largest decline over 3 years | -2.02% | -1.59% | -0.43% |
Max Drawdown (5Y)Largest decline over 5 years | -5.61% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -6.41% | — | — |
Current DrawdownCurrent decline from peak | -0.77% | -0.67% | -0.10% |
Average DrawdownAverage peak-to-trough decline | -0.48% | -0.50% | +0.02% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.50% | 0.56% | -0.06% |
Volatility
VMLTX vs. VTES - Volatility Comparison
Vanguard Limited-Term Tax-Exempt Fund Investor Shares (VMLTX) and Vanguard Short-Term Tax-Exempt Bond ETF (VTES) have volatilities of 0.47% and 0.48%, 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.
Loading charts...
Volatility by Period
| VMLTX | VTES | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.47% | 0.48% | -0.01% |
Volatility (6M)Calculated over the trailing 6-month period | 1.20% | 1.05% | +0.15% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.52% | 1.27% | +0.25% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.88% | 1.70% | +0.18% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.94% | 1.70% | +0.24% |
VMLTX vs. VTES - Expense Ratio Comparison
VMLTX has a 0.17% expense ratio, which is higher than VTES's 0.07% 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. VTES - Dividend Comparison
VMLTX's dividend yield for the trailing twelve months is around 2.86%, more than VTES's 2.74% 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% |
VTES Vanguard Short-Term Tax-Exempt Bond ETF | 2.74% | 2.77% | 2.99% | 2.03% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
VMLTX and VTES have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VTES has higher volatility (0.48%) compared to VMLTX (0.47%). In terms of maximum drawdown, VMLTX dropped -6.41% vs VTES's -2.42%.
VMLTX currently has the higher Sharpe Ratio (1.60 vs 1.54), 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.
Find the right allocation for VMLTX and VTES
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer