VMLUX vs. BND
Compare and contrast key facts about Vanguard Limited-Term Tax-Exempt Fund Admiral Shares (VMLUX) and Vanguard Total Bond Market ETF (BND).
VMLUX is managed by Vanguard. It was launched on Feb 12, 2001. BND is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Aggregate Bond Index. It was launched on Apr 3, 2007.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VMLUX or BND.
Key characteristics
| VMLUX | BND | |
|---|---|---|
| YTD Return | 2.74% | 4.87% |
| 1Y Return | 5.79% | 10.34% |
| 3Y Return (Ann) | 1.28% | -1.63% |
| 5Y Return (Ann) | 1.75% | 0.39% |
| 10Y Return (Ann) | 1.73% | 1.85% |
| Sharpe Ratio | 3.28 | 1.59 |
| Daily Std Dev | 1.76% | 6.34% |
| Max Drawdown | -6.41% | -18.84% |
| Current Drawdown | 0.00% | -6.23% |
Correlation
The correlation between VMLUX and BND is 0.33, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
VMLUX vs. BND - Performance Comparison
In the year-to-date period, VMLUX achieves a 2.74% return, which is significantly lower than BND's 4.87% return. Over the past 10 years, VMLUX has underperformed BND with an annualized return of 1.73%, while BND has yielded a comparatively higher 1.85% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VMLUX vs. BND - Expense Ratio Comparison
VMLUX has a 0.09% expense ratio, which is higher than BND's 0.03% 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%.
Risk-Adjusted Performance
VMLUX vs. BND - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Limited-Term Tax-Exempt Fund Admiral Shares (VMLUX) and Vanguard Total Bond Market ETF (BND). 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.
Dividends
VMLUX vs. BND - Dividend Comparison
VMLUX's dividend yield for the trailing twelve months is around 2.70%, less than BND's 3.37% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VMLUX Vanguard Limited-Term Tax-Exempt Fund Admiral Shares | 2.70% | 2.38% | 1.64% | 1.29% | 1.70% | 1.94% | 1.88% | 1.64% | 1.64% | 1.59% | 1.68% | 1.75% |
BND Vanguard Total Bond Market ETF | 3.37% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% | 2.78% |
Drawdowns
VMLUX vs. BND - Drawdown Comparison
The maximum VMLUX drawdown since its inception was -6.41%, smaller than the maximum BND drawdown of -18.84%. Use the drawdown chart below to compare losses from any high point for VMLUX and BND. For additional features, visit the drawdowns tool.
Volatility
VMLUX vs. BND - Volatility Comparison
The current volatility for Vanguard Limited-Term Tax-Exempt Fund Admiral Shares (VMLUX) is 0.29%, while Vanguard Total Bond Market ETF (BND) has a volatility of 1.15%. This indicates that VMLUX experiences smaller price fluctuations and is considered to be less risky than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.