VMNFX vs. VBTLX

Last updated Jun 25, 2026

VMNFX (Vanguard Market Neutral Fund Investor Shares) and VBTLX (Vanguard Total Bond Market Index Fund Admiral Shares) are both mutual funds - VMNFX is a Long-Short fund managed by Vanguard, while VBTLX is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index. Over the past 10 years, VMNFX returned 5.20%/yr vs 1.51%/yr for VBTLX. At a correlation of -0.04, they often move in opposite directions. VMNFX charges 1.31%/yr vs 0.04%/yr for VBTLX.

Performance

VMNFX vs. VBTLX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Market Neutral Fund Investor Shares (VMNFX) and Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VMNFX achieves a 14.03% return, which is significantly higher than VBTLX's 0.21% return. Over the past 10 years, VMNFX has outperformed VBTLX with an annualized return of 5.20%, while VBTLX has yielded a comparatively lower 1.51% annualized return.

VMNFX

• 1D: -0.31%
• 1M: 3.58%
• YTD: 14.03%
• 6M: 14.85%
• 1Y: 20.73%
• 3Y*: 13.81%
• 5Y*: 13.89%
• 10Y*: 5.20%

VBTLX

• 1D: 0.10%
• 1M: 0.76%
• YTD: 0.21%
• 6M: 0.34%
• 1Y: 3.93%
• 3Y*: 3.97%
• 5Y*: 0.04%
• 10Y*: 1.51%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VMNFX vs. VBTLX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VMNFX Vanguard Market Neutral Fund Investor Shares	14.03%	9.27%	5.78%	12.23%	13.48%	23.24%	-11.58%	-9.57%	0.60%	-4.89%
VBTLX Vanguard Total Bond Market Index Fund Admiral Shares	0.21%	7.17%	1.26%	5.74%	-13.16%	-1.81%	7.72%	8.73%	-0.25%	3.56%

Correlation

The correlation between VMNFX and VBTLX is -0.17, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.17
Correlation (3Y) Calculated over the trailing 3-year period	-0.15
Correlation (5Y) Calculated over the trailing 5-year period	-0.19
Correlation (10Y) Calculated over the trailing 10-year period	-0.17
Correlation (All Time) Calculated using the full available price history since Nov 12, 2001	-0.04

The correlation between VMNFX and VBTLX shifts across timeframes, from -0.19 (5 years) to -0.04 (all time), reflecting how their relationship changes across market environments.

Return for Risk

VMNFX vs. VBTLX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VMNFX

VMNFX Risk / Return Rank: 86
VMNFX Sharpe Ratio Rank: 90
VMNFX Sortino Ratio Rank: 91
VMNFX Omega Ratio Rank: 84
VMNFX Calmar Ratio Rank: 92
VMNFX Martin Ratio Rank: 73

VBTLX

VBTLX Risk / Return Rank: 18
VBTLX Sharpe Ratio Rank: 17
VBTLX Sortino Ratio Rank: 19
VBTLX Omega Ratio Rank: 16
VBTLX Calmar Ratio Rank: 20
VBTLX Martin Ratio Rank: 17

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VMNFX vs. VBTLX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Market Neutral Fund Investor Shares (VMNFX) and Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX). 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.

	VMNFX	VBTLX	Difference
Sharpe ratio: Return per unit of total volatility	2.73	1.09	+1.64
Sortino ratio: Return per unit of downside risk	4.15	1.64	+2.52
Omega ratio: Gain probability vs. loss probability	1.51	1.19	+0.32
Calmar ratio: Return relative to maximum drawdown	4.59	1.48	+3.12
Martin ratio: Return relative to average drawdown	12.86	4.16	+8.71

VMNFX vs. VBTLX - Sharpe Ratio Comparison

The current VMNFX Sharpe Ratio is 2.73, which is higher than the VBTLX Sharpe Ratio of 1.09. The chart below compares the historical Sharpe Ratios of VMNFX and VBTLX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VMNFX vs. VBTLX - Drawdown Comparison

The maximum VMNFX drawdown since its inception was -26.42%, which is greater than VBTLX's maximum drawdown of -18.81%. Use the drawdown chart below to compare losses from any high point for VMNFX and VBTLX.

Drawdown Indicators

	VMNFX	VBTLX	Difference
Max Drawdown Largest peak-to-trough decline	-26.42%	-18.81%	-7.61%
Max Drawdown (1Y) Largest decline over 1 year	-4.65%	-2.89%	-1.76%
Max Drawdown (3Y) Largest decline over 3 years	-5.44%	-6.00%	+0.56%
Max Drawdown (5Y) Largest decline over 5 years	-6.75%	-18.14%	+11.39%
Max Drawdown (10Y) Largest decline over 10 years	-25.09%	-18.81%	-6.28%
Current Drawdown Current decline from peak	-0.31%	-2.38%	+2.07%
Average Drawdown Average peak-to-trough decline	-8.74%	-2.67%	-6.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.66%	1.02%	+0.64%

Volatility

VMNFX vs. VBTLX - Volatility Comparison

Vanguard Market Neutral Fund Investor Shares (VMNFX) has a higher volatility of 2.22% compared to Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) at 1.17%. This indicates that VMNFX's price experiences larger fluctuations and is considered to be riskier than VBTLX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VMNFX	VBTLX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.22%	1.17%	+1.05%
Volatility (6M) Calculated over the trailing 6-month period	5.77%	2.87%	+2.90%
Volatility (1Y) Calculated over the trailing 1-year period	7.83%	3.91%	+3.92%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.22%	6.01%	+1.21%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.41%	4.98%	+1.43%

VMNFX vs. VBTLX - Expense Ratio Comparison

VMNFX has a 1.31% expense ratio, which is higher than VBTLX's 0.04% expense ratio.

Dividends

VMNFX vs. VBTLX - Dividend Comparison

VMNFX's dividend yield for the trailing twelve months is around 3.08%, less than VBTLX's 3.99% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VBTLX Vanguard Total Bond Market Index Fund Admiral Shares	3.99%	3.87%	3.69%	3.10%	2.59%	1.96%	2.39%	2.74%	2.57%	2.56%	2.53%	2.82%
VMNFX Vanguard Market Neutral Fund Investor Shares	3.08%	3.53%	5.61%	5.09%	0.75%	0.16%	0.81%	3.16%	0.94%	1.07%	0.38%	0.02%

Frequently Asked Questions

Can I hold both VMNFX and VBTLX in my portfolio?

VMNFX and VBTLX have a correlation of -0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VMNFX or VBTLX?

VMNFX has higher volatility (2.22%) compared to VBTLX (1.17%). In terms of maximum drawdown, VMNFX dropped -26.42% vs VBTLX's -18.81%.

Which has better risk-adjusted returns?

VMNFX currently has the higher Sharpe Ratio (2.73 vs 1.09), 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.