VMLUX vs. LTEBX
VMLUX (Vanguard Limited-Term Tax-Exempt Fund Admiral Shares) and LTEBX (American Funds Limited Term Tax-Exempt Bond Fund) are both Municipal Bonds funds. Over the past 10 years, VMLUX returned 2.03%/yr vs 1.65%/yr for LTEBX. Their 0.76 correlation means they have sometimes moved together and sometimes differently. VMLUX charges 0.09%/yr vs 0.57%/yr for LTEBX.
Performance
VMLUX vs. LTEBX - Performance Comparison
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Returns By Period
In the year-to-date period, VMLUX achieves a 0.58% return, which is significantly higher than LTEBX's -0.02% return. Over the past 10 years, VMLUX has outperformed LTEBX with an annualized return of 2.03%, while LTEBX has yielded a comparatively lower 1.65% annualized return.
VMLUX
- 1D
- -0.09%
- 1M
- -0.82%
- 6M
- -0.13%
- YTD
- 0.58%
- 1Y
- 2.39%
- 3Y*
- 4.01%
- 5Y*
- 2.03%
- 10Y*
- 2.03%
- ALL TIME*
- 2.41%
LTEBX
- 1D
- -0.06%
- 1M
- -1.15%
- 6M
- -0.86%
- YTD
- -0.02%
- 1Y
- 2.53%
- 3Y*
- 3.52%
- 5Y*
- 1.13%
- 10Y*
- 1.65%
- ALL TIME*
- 3.33%
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 |
VMLUX vs. LTEBX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VMLUX Vanguard Limited-Term Tax-Exempt Fund Admiral Shares | 0.58% | 5.50% | 3.25% | 4.29% | -2.90% | 0.23% | 3.38% | 4.21% | 1.64% | 2.13% |
LTEBX American Funds Limited Term Tax-Exempt Bond Fund | -0.02% | 6.02% | 1.97% | 3.82% | -5.12% | -0.01% | 4.01% | 4.67% | 1.08% | 2.95% |
Correlation
The correlation between VMLUX and LTEBX is 0.80, meaning they have usually moved in the same direction, including during past declines.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.80 |
Correlation (3Y) Balances recent behavior with more history. | 0.82 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.83 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.79 |
Correlation (All Time) Calculated using the full available price history since Feb 12, 2001 | 0.76 |
The correlation between VMLUX and LTEBX has been stable across timeframes, ranging from 0.76 to 0.83 - a consistent structural relationship.
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Return for Risk
VMLUX vs. LTEBX — Risk / Return Rank
VMLUX
LTEBX
VMLUX vs. LTEBX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Limited-Term Tax-Exempt Fund Admiral Shares (VMLUX) and American Funds Limited Term Tax-Exempt Bond Fund (LTEBX). 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.
| VMLUX | LTEBX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.20 | ||
| Sortino ratioReturn per unit of downside risk | +0.62 | ||
| Omega ratioGain probability vs. loss probability | 1.47 | 1.34 | +0.13 |
| Calmar ratioReturn relative to maximum drawdown | 1.69 | 1.18 | +0.51 |
| Martin ratioReturn relative to average drawdown | 5.26 | 3.07 | +2.18 |
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Drawdowns
VMLUX vs. LTEBX - Drawdown Comparison
The maximum VMLUX drawdown since its inception was -6.41%, smaller than the maximum LTEBX drawdown of -8.33%. Use the drawdown chart below to compare losses from any high point for VMLUX and LTEBX.
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Drawdown Indicators
| VMLUX | LTEBX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.41% | -8.33% | +1.92% |
Max Drawdown (1Y)Largest decline over 1 year | -1.53% | -2.33% | +0.80% |
Max Drawdown (3Y)Largest decline over 3 years | -2.02% | -2.91% | +0.89% |
Max Drawdown (5Y)Largest decline over 5 years | -5.60% | -8.33% | +2.73% |
Max Drawdown (10Y)Largest decline over 10 years | -6.41% | -8.33% | +1.92% |
Current DrawdownCurrent decline from peak | -0.84% | -1.86% | +1.02% |
Average DrawdownAverage peak-to-trough decline | -0.54% | -1.06% | +0.52% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.49% | 0.89% | -0.40% |
Volatility
VMLUX vs. LTEBX - Volatility Comparison
The current volatility for Vanguard Limited-Term Tax-Exempt Fund Admiral Shares (VMLUX) is 0.47%, while American Funds Limited Term Tax-Exempt Bond Fund (LTEBX) has a volatility of 0.55%. This indicates that VMLUX experiences smaller price fluctuations and is considered to be less risky than LTEBX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VMLUX | LTEBX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.47% | 0.55% | -0.08% |
Volatility (6M)Calculated over the trailing 6-month period | 1.23% | 1.57% | -0.34% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.57% | 1.88% | -0.31% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.89% | 2.33% | -0.44% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.94% | 2.35% | -0.41% |
VMLUX vs. LTEBX - Expense Ratio Comparison
VMLUX has a 0.09% expense ratio, which is lower than LTEBX's 0.57% expense ratio.
Dividends
VMLUX vs. LTEBX - Dividend Comparison
VMLUX's dividend yield for the trailing twelve months is around 2.93%, more than LTEBX's 2.40% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LTEBX American Funds Limited Term Tax-Exempt Bond Fund | 2.40% | 3.39% | 2.34% | 1.74% | 0.87% | 1.24% | 1.92% | 2.19% | 2.04% | 2.21% | 1.92% | 2.34% |
VMLUX Vanguard Limited-Term Tax-Exempt Fund Admiral Shares | 2.93% | 3.85% | 3.38% | 2.39% | 1.64% | 1.04% | 1.70% | 2.10% | 1.89% | 1.65% | 1.62% | 1.58% |
Frequently Asked Questions
VMLUX and LTEBX have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LTEBX has higher volatility (0.55%) compared to VMLUX (0.47%). In terms of maximum drawdown, VMLUX dropped -6.41% vs LTEBX's -8.33%.
VMLUX currently has the higher Sharpe Ratio (1.68 vs 1.48), 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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