VTCLX vs. VMLUX

Last updated Jun 24, 2026

VTCLX (Vanguard Tax-Managed Capital Appreciation Fund Admiral Shares) and VMLUX (Vanguard Limited-Term Tax-Exempt Fund Admiral Shares) are both mutual funds - VTCLX is a Large Cap Blend Equities fund tracking the Russell 1000 Index, while VMLUX is a Municipal Bonds fund managed by Vanguard. Over the past 10 years, VTCLX returned 15.64%/yr vs 2.10%/yr for VMLUX. At a correlation of -0.06, they often move in opposite directions. VTCLX charges 0.05%/yr vs 0.09%/yr for VMLUX.

Performance

VTCLX vs. VMLUX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Tax-Managed Capital Appreciation Fund Admiral Shares (VTCLX) and Vanguard Limited-Term Tax-Exempt Fund Admiral Shares (VMLUX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTCLX achieves a 9.59% return, which is significantly higher than VMLUX's 1.05% return. Over the past 10 years, VTCLX has outperformed VMLUX with an annualized return of 15.64%, while VMLUX has yielded a comparatively lower 2.10% annualized return.

VTCLX

• 1D: -0.40%
• 1M: 0.38%
• YTD: 9.59%
• 6M: 8.51%
• 1Y: 25.09%
• 3Y*: 20.96%
• 5Y*: 12.76%
• 10Y*: 15.64%

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%

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

VTCLX vs. VMLUX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTCLX Vanguard Tax-Managed Capital Appreciation Fund Admiral Shares	9.59%	17.44%	23.76%	26.62%	-19.07%	26.87%	21.08%	31.47%	-4.98%	22.40%
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%

Correlation

The correlation between VTCLX and VMLUX is 0.12, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.13
Correlation (3Y) Calculated over the trailing 3-year period	0.10
Correlation (5Y) Calculated over the trailing 5-year period	0.08
Correlation (10Y) Calculated over the trailing 10-year period	0.03
Correlation (All Time) Calculated using the full available price history since Nov 12, 2001	-0.06

The correlation between VTCLX and VMLUX shifts across timeframes, from -0.06 (all time) to 0.12 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

VTCLX vs. VMLUX — Risk / Return Rank

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

VTCLX

VTCLX Risk / Return Rank: 63
VTCLX Sharpe Ratio Rank: 59
VTCLX Sortino Ratio Rank: 54
VTCLX Omega Ratio Rank: 55
VTCLX Calmar Ratio Rank: 67
VTCLX Martin Ratio Rank: 77

VMLUX

VMLUX Risk / Return Rank: 76
VMLUX Sharpe Ratio Rank: 89
VMLUX Sortino Ratio Rank: 96
VMLUX Omega Ratio Rank: 97
VMLUX Calmar Ratio Rank: 53
VMLUX Martin Ratio Rank: 44

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.

VTCLX vs. VMLUX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Managed Capital Appreciation Fund Admiral Shares (VTCLX) and Vanguard Limited-Term Tax-Exempt Fund Admiral Shares (VMLUX). 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.

	VTCLX	VMLUX	Difference
Sharpe ratio: Return per unit of total volatility	2.09	2.71	-0.61
Sortino ratio: Return per unit of downside risk	2.84	4.98	-2.14
Omega ratio: Gain probability vs. loss probability	1.38	1.88	-0.50
Calmar ratio: Return relative to maximum drawdown	3.00	2.66	+0.34
Martin ratio: Return relative to average drawdown	13.52	8.75	+4.77

VTCLX vs. VMLUX - Sharpe Ratio Comparison

The current VTCLX Sharpe Ratio is 2.09, which is comparable to the VMLUX Sharpe Ratio of 2.71. The chart below compares the historical Sharpe Ratios of VTCLX and VMLUX, 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

VTCLX vs. VMLUX - Drawdown Comparison

The maximum VTCLX drawdown since its inception was -55.18%, which is greater than VMLUX's maximum drawdown of -6.41%. Use the drawdown chart below to compare losses from any high point for VTCLX and VMLUX.

Drawdown Indicators

	VTCLX	VMLUX	Difference
Max Drawdown Largest peak-to-trough decline	-55.18%	-6.41%	-48.77%
Max Drawdown (1Y) Largest decline over 1 year	-8.79%	-1.53%	-7.26%
Max Drawdown (3Y) Largest decline over 3 years	-19.01%	-2.02%	-16.99%
Max Drawdown (5Y) Largest decline over 5 years	-24.98%	-5.60%	-19.38%
Max Drawdown (10Y) Largest decline over 10 years	-34.56%	-6.41%	-28.15%
Current Drawdown Current decline from peak	-1.55%	-0.38%	-1.17%
Average Drawdown Average peak-to-trough decline	-7.55%	-0.54%	-7.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.95%	0.46%	+1.49%

Volatility

VTCLX vs. VMLUX - Volatility Comparison

Vanguard Tax-Managed Capital Appreciation Fund Admiral Shares (VTCLX) has a higher volatility of 4.68% compared to Vanguard Limited-Term Tax-Exempt Fund Admiral Shares (VMLUX) at 0.38%. This indicates that VTCLX's price experiences larger fluctuations and is considered to be riskier than VMLUX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTCLX	VMLUX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.68%	0.38%	+4.30%
Volatility (6M) Calculated over the trailing 6-month period	9.93%	1.14%	+8.79%
Volatility (1Y) Calculated over the trailing 1-year period	12.64%	1.51%	+11.13%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.31%	1.87%	+15.44%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.32%	1.93%	+16.39%

VTCLX vs. VMLUX - Expense Ratio Comparison

VTCLX has a 0.05% expense ratio, which is lower than VMLUX's 0.09% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VTCLX vs. VMLUX - Dividend Comparison

VTCLX's dividend yield for the trailing twelve months is around 0.91%, less than VMLUX's 3.16% 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%
VTCLX Vanguard Tax-Managed Capital Appreciation Fund Admiral Shares	0.91%	0.93%	1.04%	1.24%	1.47%	1.04%	1.32%	1.52%	1.83%	1.57%	1.76%	1.69%

Frequently Asked Questions

Can I hold both VTCLX and VMLUX in my portfolio?

VTCLX and VMLUX have a correlation of 0.12, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTCLX or VMLUX?

VTCLX has higher volatility (4.68%) compared to VMLUX (0.38%). In terms of maximum drawdown, VTCLX dropped -55.18% vs VMLUX's -6.41%.

Which has better risk-adjusted returns?

VMLUX currently has the higher Sharpe Ratio (2.71 vs 2.09), 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.