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VTEAX vs. LTEBX
Performance
Return for Risk
Dividends
Drawdowns
Volatility

Performance

VTEAX vs. LTEBX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Tax-Exempt Bond Index Fund Admiral Shares (VTEAX) and American Funds Limited Term Tax-Exempt Bond Fund (LTEBX). The values are adjusted to include any dividend payments, if applicable.

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VTEAX vs. LTEBX - Yearly Performance Comparison


2026 (YTD)202520242023202220212020201920182017
VTEAX
Vanguard Tax-Exempt Bond Index Fund Admiral Shares
-0.24%3.67%1.63%6.39%-8.21%1.43%4.97%7.45%0.99%4.94%
LTEBX
American Funds Limited Term Tax-Exempt Bond Fund
-0.24%6.02%1.97%3.82%-5.12%-0.01%4.01%4.67%1.08%2.95%

Returns By Period

As of year-to-date, both investments have demonstrated similar returns, with VTEAX at -0.24% and LTEBX at -0.24%. Over the past 10 years, VTEAX has outperformed LTEBX with an annualized return of 2.09%, while LTEBX has yielded a comparatively lower 1.73% annualized return.


VTEAX

1D
0.25%
1M
-1.97%
YTD
-0.24%
6M
1.20%
1Y
3.73%
3Y*
2.86%
5Y*
0.89%
10Y*
2.09%

LTEBX

1D
0.19%
1M
-1.83%
YTD
-0.24%
6M
0.63%
1Y
4.04%
3Y*
3.28%
5Y*
1.27%
10Y*
1.73%
*Multi-year figures are annualized to reflect compound growth (CAGR)

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VTEAX vs. LTEBX - Expense Ratio Comparison

VTEAX has a 0.09% expense ratio, which is lower than LTEBX's 0.57% expense ratio.


Return for Risk

VTEAX vs. LTEBX — Risk / Return Rank

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

VTEAX
VTEAX Risk / Return Rank: 4343
Overall Rank
VTEAX Sharpe Ratio Rank: 4646
Sharpe Ratio Rank
VTEAX Sortino Ratio Rank: 3636
Sortino Ratio Rank
VTEAX Omega Ratio Rank: 6969
Omega Ratio Rank
VTEAX Calmar Ratio Rank: 3434
Calmar Ratio Rank
VTEAX Martin Ratio Rank: 2929
Martin Ratio Rank

LTEBX
LTEBX Risk / Return Rank: 7676
Overall Rank
LTEBX Sharpe Ratio Rank: 7979
Sharpe Ratio Rank
LTEBX Sortino Ratio Rank: 7676
Sortino Ratio Rank
LTEBX Omega Ratio Rank: 9191
Omega Ratio Rank
LTEBX Calmar Ratio Rank: 6868
Calmar Ratio Rank
LTEBX Martin Ratio Rank: 6767
Martin Ratio Rank
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.

VTEAX vs. LTEBX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Exempt Bond Index Fund Admiral Shares (VTEAX) 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.


VTEAXLTEBXDifference

Sharpe ratio

Return per unit of total volatility

0.95

1.50

-0.56

Sortino ratio

Return per unit of downside risk

1.24

2.00

-0.76

Omega ratio

Gain probability vs. loss probability

1.27

1.43

-0.16

Calmar ratio

Return relative to maximum drawdown

0.97

1.71

-0.73

Martin ratio

Return relative to average drawdown

3.22

6.81

-3.59

VTEAX vs. LTEBX - Sharpe Ratio Comparison

The current VTEAX Sharpe Ratio is 0.95, which is lower than the LTEBX Sharpe Ratio of 1.50. The chart below compares the historical Sharpe Ratios of VTEAX and LTEBX, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.


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Sharpe Ratios by Period


VTEAXLTEBXDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.95

1.50

-0.56

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.25

0.56

-0.31

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.57

0.75

-0.17

Sharpe Ratio (All Time)

Calculated using the full available price history

0.66

1.47

-0.80

Correlation

The correlation between VTEAX and LTEBX is 0.82, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.


Dividends

VTEAX vs. LTEBX - Dividend Comparison

VTEAX's dividend yield for the trailing twelve months is around 3.05%, more than LTEBX's 2.59% yield.


TTM20252024202320222021202020192018201720162015
VTEAX
Vanguard Tax-Exempt Bond Index Fund Admiral Shares
3.05%3.26%3.36%2.98%2.05%1.60%1.97%2.27%2.24%1.95%1.67%0.59%
LTEBX
American Funds Limited Term Tax-Exempt Bond Fund
2.59%3.39%2.34%1.74%0.87%1.24%1.92%2.19%2.04%2.21%1.92%2.34%

Drawdowns

VTEAX vs. LTEBX - Drawdown Comparison

The maximum VTEAX drawdown since its inception was -12.75%, which is greater than LTEBX's maximum drawdown of -8.33%. Use the drawdown chart below to compare losses from any high point for VTEAX and LTEBX.


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Drawdown Indicators


VTEAXLTEBXDifference

Max Drawdown

Largest peak-to-trough decline

-12.75%

-8.33%

-4.42%

Max Drawdown (1Y)

Largest decline over 1 year

-4.50%

-2.91%

-1.59%

Max Drawdown (5Y)

Largest decline over 5 years

-12.75%

-8.33%

-4.42%

Max Drawdown (10Y)

Largest decline over 10 years

-12.75%

-8.33%

-4.42%

Current Drawdown

Current decline from peak

-2.21%

-2.08%

-0.13%

Average Drawdown

Average peak-to-trough decline

-2.28%

-1.05%

-1.23%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.36%

0.73%

+0.63%

Volatility

VTEAX vs. LTEBX - Volatility Comparison

Vanguard Tax-Exempt Bond Index Fund Admiral Shares (VTEAX) has a higher volatility of 1.15% compared to American Funds Limited Term Tax-Exempt Bond Fund (LTEBX) at 0.82%. This indicates that VTEAX's price experiences larger fluctuations and is considered to be riskier 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


VTEAXLTEBXDifference

Volatility (1M)

Calculated over the trailing 1-month period

1.15%

0.82%

+0.33%

Volatility (6M)

Calculated over the trailing 6-month period

1.48%

1.24%

+0.24%

Volatility (1Y)

Calculated over the trailing 1-year period

4.36%

2.94%

+1.42%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

3.57%

2.28%

+1.29%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

3.65%

2.33%

+1.32%