VTEL vs. VWLUX

Last updated Jun 24, 2026

VTEL (Vanguard Long-Term Tax-Exempt Bond ETF) and VWLUX (Vanguard Long-Term Tax-Exempt Fund Admiral Shares) are both Municipal Bonds funds from Vanguard. Over the past year, VTEL returned 8.23% vs 7.86% for VWLUX. A 0.72 correlation means they provide meaningful diversification when combined. Both charge a 0.09% expense ratio.

Performance

VTEL vs. VWLUX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Long-Term Tax-Exempt Bond ETF (VTEL) and Vanguard Long-Term Tax-Exempt Fund Admiral Shares (VWLUX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with VTEL having a 2.14% return and VWLUX slightly lower at 2.07%.

VTEL

• 1D: -0.07%
• 1M: 1.82%
• YTD: 2.14%
• 6M: 2.27%
• 1Y: 8.23%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VWLUX

• 1D: -0.09%
• 1M: 1.91%
• YTD: 2.07%
• 6M: 2.49%
• 1Y: 7.86%
• 3Y*: 4.64%
• 5Y*: 1.34%
• 10Y*: 2.59%

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

VTEL vs. VWLUX - Yearly Performance Comparison

	2026 (YTD)	2025
VTEL Vanguard Long-Term Tax-Exempt Bond ETF	2.14%	6.61%
VWLUX Vanguard Long-Term Tax-Exempt Fund Admiral Shares	2.07%	6.21%

Correlation

The correlation between VTEL and VWLUX is 0.72, 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	0.72
Correlation (All Time) Calculated using the full available price history since May 22, 2025	0.72

The correlation between VTEL and VWLUX has been stable across timeframes, ranging from 0.72 to 0.72 - a consistent structural relationship.

Return for Risk

VTEL vs. VWLUX — Risk / Return Rank

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

VTEL

VTEL Risk / Return Rank: 71
VTEL Sharpe Ratio Rank: 76
VTEL Sortino Ratio Rank: 82
VTEL Omega Ratio Rank: 84
VTEL Calmar Ratio Rank: 56
VTEL Martin Ratio Rank: 56

VWLUX

VWLUX Risk / Return Rank: 74
VWLUX Sharpe Ratio Rank: 87
VWLUX Sortino Ratio Rank: 91
VWLUX Omega Ratio Rank: 92
VWLUX Calmar Ratio Rank: 51
VWLUX Martin Ratio Rank: 48

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.

VTEL vs. VWLUX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Tax-Exempt Bond ETF (VTEL) and Vanguard Long-Term Tax-Exempt Fund Admiral Shares (VWLUX). 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.

	VTEL	VWLUX	Difference
Sharpe ratio: Return per unit of total volatility	2.23	2.64	-0.41
Sortino ratio: Return per unit of downside risk	3.36	4.23	-0.87
Omega ratio: Gain probability vs. loss probability	1.46	1.66	-0.20
Calmar ratio: Return relative to maximum drawdown	2.56	2.62	-0.06
Martin ratio: Return relative to average drawdown	9.14	9.38	-0.23

VTEL vs. VWLUX - Sharpe Ratio Comparison

The current VTEL Sharpe Ratio is 2.23, which is comparable to the VWLUX Sharpe Ratio of 2.64. The chart below compares the historical Sharpe Ratios of VTEL and VWLUX, 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

VTEL vs. VWLUX - Drawdown Comparison

The maximum VTEL drawdown since its inception was -3.22%, smaller than the maximum VWLUX drawdown of -15.94%. Use the drawdown chart below to compare losses from any high point for VTEL and VWLUX.

Drawdown Indicators

	VTEL	VWLUX	Difference
Max Drawdown Largest peak-to-trough decline	-3.22%	-15.94%	+12.72%
Max Drawdown (1Y) Largest decline over 1 year	-3.22%	-3.09%	-0.13%
Max Drawdown (3Y) Largest decline over 3 years	—	-6.90%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-15.94%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-15.94%	—
Current Drawdown Current decline from peak	-0.12%	-0.13%	+0.01%
Average Drawdown Average peak-to-trough decline	-0.57%	-2.08%	+1.51%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.90%	0.86%	+0.04%

Volatility

VTEL vs. VWLUX - Volatility Comparison

Vanguard Long-Term Tax-Exempt Bond ETF (VTEL) has a higher volatility of 0.98% compared to Vanguard Long-Term Tax-Exempt Fund Admiral Shares (VWLUX) at 0.92%. This indicates that VTEL's price experiences larger fluctuations and is considered to be riskier than VWLUX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTEL	VWLUX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.98%	0.92%	+0.06%
Volatility (6M) Calculated over the trailing 6-month period	2.67%	2.33%	+0.34%
Volatility (1Y) Calculated over the trailing 1-year period	3.71%	3.07%	+0.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.73%	4.61%	-0.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.73%	4.51%	-0.78%

VTEL vs. VWLUX - Expense Ratio Comparison

Both VTEL and VWLUX 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

VTEL vs. VWLUX - Dividend Comparison

VTEL's dividend yield for the trailing twelve months is around 3.80%, which matches VWLUX's 3.77% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VTEL Vanguard Long-Term Tax-Exempt Bond ETF	3.80%	2.23%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VWLUX Vanguard Long-Term Tax-Exempt Fund Admiral Shares	3.77%	4.61%	4.08%	3.17%	3.00%	2.70%	3.32%	3.91%	3.58%	3.80%	4.09%	3.87%

Frequently Asked Questions

Can I hold both VTEL and VWLUX in my portfolio?

VTEL and VWLUX have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTEL or VWLUX?

VTEL has higher volatility (0.98%) compared to VWLUX (0.92%). In terms of maximum drawdown, VTEL dropped -3.22% vs VWLUX's -15.94%.

Which has better risk-adjusted returns?

VWLUX currently has the higher Sharpe Ratio (2.64 vs 2.23), 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.