VMLUX vs. VFIAX
VMLUX (Vanguard Limited-Term Tax-Exempt Fund Admiral Shares) and VFIAX (Vanguard 500 Index Fund Admiral Shares) are both mutual funds - VMLUX is a Municipal Bonds fund managed by Vanguard, while VFIAX is a S&P 500 fund tracking the S&P 500 Index. Over the past 10 years, VMLUX returned 2.15%/yr vs 15.63%/yr for VFIAX. At a correlation of -0.06, they often move in opposite directions. VMLUX charges 0.09%/yr vs 0.04%/yr for VFIAX.
Performance
VMLUX vs. VFIAX - Performance Comparison
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Returns By Period
In the year-to-date period, VMLUX achieves a 1.05% return, which is significantly lower than VFIAX's 11.69% return. Over the past 10 years, VMLUX has underperformed VFIAX with an annualized return of 2.15%, while VFIAX has yielded a comparatively higher 15.63% annualized return.
VMLUX
- 1D
- 0.09%
- 1M
- 0.36%
- YTD
- 1.05%
- 6M
- 1.41%
- 1Y
- 4.44%
- 3Y*
- 4.34%
- 5Y*
- 2.21%
- 10Y*
- 2.15%
VFIAX
- 1D
- 0.13%
- 1M
- 5.80%
- YTD
- 11.69%
- 6M
- 11.73%
- 1Y
- 28.95%
- 3Y*
- 22.72%
- 5Y*
- 14.24%
- 10Y*
- 15.63%
VMLUX vs. VFIAX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VMLUX Vanguard Limited-Term Tax-Exempt Fund Admiral Shares | 1.05% | 5.50% | 3.25% | 4.29% | -2.90% | 0.23% | 3.38% | 4.21% | 1.64% | 2.13% |
VFIAX Vanguard 500 Index Fund Admiral Shares | 11.69% | 17.83% | 24.97% | 26.24% | -18.16% | 28.65% | 18.32% | 31.46% | -4.45% | 21.78% |
Correlation
The correlation between VMLUX and VFIAX is 0.08, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.08 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.09 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.07 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.02 |
Correlation (All Time) Calculated using the full available price history since Feb 13, 2001 | -0.06 |
The correlation between VMLUX and VFIAX shifts across timeframes, from -0.06 (all time) to 0.09 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
VMLUX vs. VFIAX — Risk / Return Rank
VMLUX
VFIAX
VMLUX vs. VFIAX - 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 Vanguard 500 Index Fund Admiral Shares (VFIAX). 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.
| VMLUX | VFIAX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.44 | ||
| Sortino ratioReturn per unit of downside risk | +2.06 | ||
| Omega ratioGain probability vs. loss probability | 1.98 | 1.46 | +0.52 |
| Calmar ratioReturn relative to maximum drawdown | 2.91 | 3.35 | -0.44 |
| Martin ratioReturn relative to average drawdown | 9.76 | 15.66 | -5.91 |
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
| VMLUX | VFIAX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.96 | 2.52 | +0.44 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 1.18 | 0.85 | +0.34 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.12 | 0.87 | +0.25 |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.48 | 0.47 | +1.01 |
Drawdowns
VMLUX vs. VFIAX - Drawdown Comparison
The maximum VMLUX drawdown since its inception was -6.41%, smaller than the maximum VFIAX drawdown of -55.20%. Use the drawdown chart below to compare losses from any high point for VMLUX and VFIAX.
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Drawdown Indicators
| VMLUX | VFIAX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.41% | -55.20% | +48.79% |
Max Drawdown (1Y)Largest decline over 1 year | -1.53% | -8.90% | +7.37% |
Max Drawdown (3Y)Largest decline over 3 years | -2.02% | -18.75% | +16.73% |
Max Drawdown (5Y)Largest decline over 5 years | -5.60% | -24.53% | +18.93% |
Max Drawdown (10Y)Largest decline over 10 years | -6.41% | -33.83% | +27.42% |
Current DrawdownCurrent decline from peak | -0.38% | 0.00% | -0.38% |
Average DrawdownAverage peak-to-trough decline | -0.54% | -9.40% | +8.86% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.46% | 1.90% | -1.44% |
Volatility
VMLUX vs. VFIAX - Volatility Comparison
The current volatility for Vanguard Limited-Term Tax-Exempt Fund Admiral Shares (VMLUX) is 0.46%, while Vanguard 500 Index Fund Admiral Shares (VFIAX) has a volatility of 2.82%. This indicates that VMLUX experiences smaller price fluctuations and is considered to be less risky than VFIAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VMLUX | VFIAX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.46% | 2.82% | -2.36% |
Volatility (6M)Calculated over the trailing 6-month period | 1.15% | 8.98% | -7.83% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.51% | 11.86% | -10.35% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.87% | 16.90% | -15.03% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.93% | 18.07% | -16.14% |
VMLUX vs. VFIAX - Expense Ratio Comparison
VMLUX has a 0.09% expense ratio, which is higher than VFIAX's 0.04% 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
VMLUX vs. VFIAX - Dividend Comparison
VMLUX's dividend yield for the trailing twelve months is around 3.16%, more than VFIAX's 1.01% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VFIAX Vanguard 500 Index Fund Admiral Shares | 1.01% | 1.12% | 1.24% | 1.45% | 1.68% | 1.24% | 1.53% | 1.87% | 2.05% | 1.78% | 2.02% | 2.10% |
VMLUX Vanguard Limited-Term Tax-Exempt Fund Admiral Shares | 3.16% | 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 VFIAX have a correlation of 0.08, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VFIAX has higher volatility (2.82%) compared to VMLUX (0.46%). In terms of maximum drawdown, VMLUX dropped -6.41% vs VFIAX's -55.20%.
VMLUX currently has the higher Sharpe Ratio (2.96 vs 2.52), 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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