VMLUX vs. VWSUX
VMLUX (Vanguard Limited-Term Tax-Exempt Fund Admiral Shares) and VWSUX (Vanguard Short-Term Tax-Exempt Fund Admiral Shares) are both Municipal Bonds funds from Vanguard. Over the past 10 years, VMLUX returned 2.10%/yr vs 1.99%/yr for VWSUX. A 0.66 correlation means they provide meaningful diversification when combined. Both charge a 0.09% expense ratio.
Performance
VMLUX vs. VWSUX - 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 VWSUX's 1.14% return. Over the past 10 years, VMLUX has outperformed VWSUX with an annualized return of 2.10%, while VWSUX has yielded a comparatively lower 1.99% annualized return.
VMLUX
- 1D
- 0.00%
- 1M
- 0.72%
- YTD
- 1.05%
- 6M
- 1.41%
- 1Y
- 4.06%
- 3Y*
- 4.24%
- 5Y*
- 2.23%
- 10Y*
- 2.10%
VWSUX
- 1D
- -0.06%
- 1M
- 0.44%
- YTD
- 1.14%
- 6M
- 1.47%
- 1Y
- 3.56%
- 3Y*
- 4.10%
- 5Y*
- 2.54%
- 10Y*
- 1.99%
VMLUX vs. VWSUX - 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% |
VWSUX Vanguard Short-Term Tax-Exempt Fund Admiral Shares | 1.14% | 4.90% | 3.77% | 3.70% | -0.73% | 0.19% | 1.91% | 2.59% | 1.67% | 1.10% |
Correlation
The correlation between VMLUX and VWSUX is 0.66, 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 | 0.66 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.74 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.76 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.70 |
Correlation (All Time) Calculated using the full available price history since Feb 12, 2001 | 0.66 |
The correlation between VMLUX and VWSUX shifts across timeframes, from 0.66 (all time) to 0.76 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
VMLUX vs. VWSUX — Risk / Return Rank
VMLUX
VWSUX
VMLUX vs. VWSUX - 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 Short-Term Tax-Exempt Fund Admiral Shares (VWSUX). 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 | VWSUX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.49 | ||
| Sortino ratioReturn per unit of downside risk | -2.91 | ||
| Omega ratioGain probability vs. loss probability | 1.88 | 2.47 | -0.59 |
| Calmar ratioReturn relative to maximum drawdown | 2.66 | 5.19 | -2.53 |
| Martin ratioReturn relative to average drawdown | 8.75 | 23.12 | -14.37 |
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Drawdowns
VMLUX vs. VWSUX - Drawdown Comparison
The maximum VMLUX drawdown since its inception was -6.41%, which is greater than VWSUX's maximum drawdown of -3.08%. Use the drawdown chart below to compare losses from any high point for VMLUX and VWSUX.
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Drawdown Indicators
| VMLUX | VWSUX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.41% | -3.08% | -3.33% |
Max Drawdown (1Y)Largest decline over 1 year | -1.53% | -0.69% | -0.84% |
Max Drawdown (3Y)Largest decline over 3 years | -2.02% | -1.01% | -1.01% |
Max Drawdown (5Y)Largest decline over 5 years | -5.60% | -2.23% | -3.37% |
Max Drawdown (10Y)Largest decline over 10 years | -6.41% | -3.08% | -3.33% |
Current DrawdownCurrent decline from peak | -0.38% | -0.06% | -0.32% |
Average DrawdownAverage peak-to-trough decline | -0.54% | -0.15% | -0.39% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.46% | 0.15% | +0.31% |
Volatility
VMLUX vs. VWSUX - Volatility Comparison
Vanguard Limited-Term Tax-Exempt Fund Admiral Shares (VMLUX) has a higher volatility of 0.38% compared to Vanguard Short-Term Tax-Exempt Fund Admiral Shares (VWSUX) at 0.36%. This indicates that VMLUX's price experiences larger fluctuations and is considered to be riskier than VWSUX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VMLUX | VWSUX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.38% | 0.36% | +0.02% |
Volatility (6M)Calculated over the trailing 6-month period | 1.14% | 0.83% | +0.31% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.51% | 1.12% | +0.39% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.87% | 1.23% | +0.64% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.93% | 1.12% | +0.81% |
VMLUX vs. VWSUX - Expense Ratio Comparison
Both VMLUX and VWSUX have an expense ratio of 0.09%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
VMLUX vs. VWSUX - Dividend Comparison
VMLUX's dividend yield for the trailing twelve months is around 3.16%, more than VWSUX's 3.12% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
VWSUX Vanguard Short-Term Tax-Exempt Fund Admiral Shares | 3.12% | 4.00% | 3.82% | 2.27% | 1.24% | 0.63% | 1.26% | 1.79% | 1.53% | 1.16% | 0.97% | 0.78% |
Frequently Asked Questions
VMLUX and VWSUX have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VMLUX has higher volatility (0.38%) compared to VWSUX (0.36%). In terms of maximum drawdown, VMLUX dropped -6.41% vs VWSUX's -3.08%.
VWSUX currently has the higher Sharpe Ratio (3.20 vs 2.71), 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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