VTMSX vs. VMLTX
VTMSX (Vanguard Tax-Managed Small-Cap Fund Admiral Shares) and VMLTX (Vanguard Limited-Term Tax-Exempt Fund Investor Shares) are both mutual funds - VTMSX is a Small Cap Blend Equities fund managed by BlackRock, while VMLTX is a Municipal Bonds fund managed by Vanguard. Over the past 10 years, VTMSX returned 10.70%/yr vs 2.13%/yr for VMLTX. At a correlation of -0.06, they often move in opposite directions. VTMSX charges 0.09%/yr vs 0.17%/yr for VMLTX.
Performance
VTMSX vs. VMLTX - Performance Comparison
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Returns By Period
In the year-to-date period, VTMSX achieves a 15.67% return, which is significantly higher than VMLTX's 1.01% return. Over the past 10 years, VTMSX has outperformed VMLTX with an annualized return of 10.70%, while VMLTX has yielded a comparatively lower 2.13% annualized return.
VTMSX
- 1D
- -0.84%
- 1M
- 0.35%
- YTD
- 15.67%
- 6M
- 14.69%
- 1Y
- 32.17%
- 3Y*
- 14.50%
- 5Y*
- 5.76%
- 10Y*
- 10.70%
VMLTX
- 1D
- 0.00%
- 1M
- 0.35%
- YTD
- 1.01%
- 6M
- 1.37%
- 1Y
- 4.26%
- 3Y*
- 4.24%
- 5Y*
- 2.12%
- 10Y*
- 2.13%
VTMSX vs. VMLTX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VTMSX Vanguard Tax-Managed Small-Cap Fund Admiral Shares | 15.67% | 5.93% | 8.61% | 15.95% | -16.16% | 27.08% | 11.05% | 23.28% | -8.62% | 13.05% |
VMLTX Vanguard Limited-Term Tax-Exempt Fund Investor Shares | 1.01% | 5.39% | 3.14% | 4.19% | -2.98% | 0.83% | 3.30% | 4.11% | 1.56% | 2.02% |
Correlation
The correlation between VTMSX and VMLTX 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 | 0.12 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.11 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.09 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.01 |
Correlation (All Time) Calculated using the full available price history since Mar 26, 1999 | -0.06 |
The correlation between VTMSX and VMLTX shifts across timeframes, from -0.06 (all time) to 0.12 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VTMSX vs. VMLTX — Risk / Return Rank
VTMSX
VMLTX
VTMSX vs. VMLTX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Tax-Managed Small-Cap Fund Admiral Shares (VTMSX) and Vanguard Limited-Term Tax-Exempt Fund Investor Shares (VMLTX). 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.
| VTMSX | VMLTX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.11 | ||
| Sortino ratioReturn per unit of downside risk | -2.71 | ||
| Omega ratioGain probability vs. loss probability | 1.32 | 1.96 | -0.64 |
| Calmar ratioReturn relative to maximum drawdown | 3.72 | 2.86 | +0.86 |
| Martin ratioReturn relative to average drawdown | 12.35 | 9.48 | +2.87 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VTMSX | VMLTX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.83 | 2.93 | -1.11 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.27 | 1.14 | -0.87 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.46 | 1.10 | -0.64 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.45 | 1.93 | -1.48 |
Drawdowns
VTMSX vs. VMLTX - Drawdown Comparison
The maximum VTMSX drawdown since its inception was -57.84%, which is greater than VMLTX's maximum drawdown of -6.41%. Use the drawdown chart below to compare losses from any high point for VTMSX and VMLTX.
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Drawdown Indicators
| VTMSX | VMLTX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -57.84% | -6.41% | -51.43% |
Max Drawdown (1Y)Largest decline over 1 year | -8.59% | -1.53% | -7.06% |
Max Drawdown (3Y)Largest decline over 3 years | -27.93% | -2.02% | -25.91% |
Max Drawdown (5Y)Largest decline over 5 years | -27.93% | -5.69% | -22.24% |
Max Drawdown (10Y)Largest decline over 10 years | -43.88% | -6.41% | -37.47% |
Current DrawdownCurrent decline from peak | -0.84% | -0.40% | -0.44% |
Average DrawdownAverage peak-to-trough decline | -8.93% | -0.48% | -8.45% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.58% | 0.46% | +2.12% |
Volatility
VTMSX vs. VMLTX - Volatility Comparison
Vanguard Tax-Managed Small-Cap Fund Admiral Shares (VTMSX) has a higher volatility of 4.48% compared to Vanguard Limited-Term Tax-Exempt Fund Investor Shares (VMLTX) at 0.46%. This indicates that VTMSX's price experiences larger fluctuations and is considered to be riskier than VMLTX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VTMSX | VMLTX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.48% | 0.46% | +4.02% |
Volatility (6M)Calculated over the trailing 6-month period | 11.71% | 1.13% | +10.58% |
Volatility (1Y)Calculated over the trailing 1-year period | 17.55% | 1.49% | +16.06% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 21.46% | 1.86% | +19.60% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.12% | 1.93% | +21.19% |
VTMSX vs. VMLTX - Expense Ratio Comparison
VTMSX has a 0.09% expense ratio, which is lower than VMLTX's 0.17% 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
VTMSX vs. VMLTX - Dividend Comparison
VTMSX's dividend yield for the trailing twelve months is around 1.16%, less than VMLTX's 3.07% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VMLTX Vanguard Limited-Term Tax-Exempt Fund Investor Shares | 3.07% | 3.75% | 3.27% | 2.30% | 1.56% | 1.64% | 1.62% | 2.01% | 1.81% | 1.55% | 1.52% | 1.50% |
VTMSX Vanguard Tax-Managed Small-Cap Fund Admiral Shares | 1.16% | 1.28% | 1.44% | 1.50% | 1.51% | 1.16% | 1.09% | 1.15% | 1.26% | 1.11% | 1.01% | 1.26% |
Frequently Asked Questions
VTMSX and VMLTX 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.
VTMSX has higher volatility (4.48%) compared to VMLTX (0.46%). In terms of maximum drawdown, VTMSX dropped -57.84% vs VMLTX's -6.41%.
VMLTX currently has the higher Sharpe Ratio (2.93 vs 1.83), 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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