VTMSX vs. VWIUX

Last updated Jun 5, 2026

VTMSX (Vanguard Tax-Managed Small-Cap Fund Admiral Shares) and VWIUX (Vanguard Intermediate-Term Tax-Exempt Fund Admiral Shares) are both mutual funds - VTMSX is a Small Cap Blend Equities fund managed by BlackRock, while VWIUX is a Municipal Bonds fund managed by Vanguard. Over the past 10 years, VTMSX returned 10.70%/yr vs 2.47%/yr for VWIUX. At a correlation of -0.10, they often move in opposite directions. Both charge a 0.09% expense ratio.

Performance

VTMSX vs. VWIUX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Tax-Managed Small-Cap Fund Admiral Shares (VTMSX) and Vanguard Intermediate-Term Tax-Exempt Fund Admiral Shares (VWIUX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTMSX achieves a 15.67% return, which is significantly higher than VWIUX's 1.26% return. Over the past 10 years, VTMSX has outperformed VWIUX with an annualized return of 10.70%, while VWIUX has yielded a comparatively lower 2.47% 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%

VWIUX

• 1D: -0.07%
• 1M: 0.50%
• YTD: 1.26%
• 6M: 1.76%
• 1Y: 6.74%
• 3Y*: 4.53%
• 5Y*: 1.69%
• 10Y*: 2.47%

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

VTMSX vs. VWIUX - 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%
VWIUX Vanguard Intermediate-Term Tax-Exempt Fund Admiral Shares	1.26%	5.99%	2.34%	5.90%	-6.83%	0.81%	5.23%	7.10%	1.34%	4.65%

Correlation

The correlation between VTMSX and VWIUX is 0.15, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.15
Correlation (3Y) Calculated over the trailing 3-year period	0.13
Correlation (5Y) Calculated over the trailing 5-year period	0.09
Correlation (10Y) Calculated over the trailing 10-year period	-0.02
Correlation (All Time) Calculated using the full available price history since Feb 13, 2001	-0.10

The correlation between VTMSX and VWIUX shifts across timeframes, from -0.10 (all time) to 0.15 (1 year), reflecting how their relationship changes across market environments.

VTMSX vs. VWIUX - Sectors Allocation Comparison

Sectors	VTMSX	VWIUX
Financial Services	16.7%	0.1%
Industrials	15.6%	-
Technology	15.4%	0.0%
Consumer Cyclical	13.4%	-
Healthcare	10.9%	-
Real Estate	7.8%	-
Energy	6.0%	-
Basic Materials	5.3%	-
Communication Services	3.5%	-
Consumer Defensive	3.5%	-
Utilities	1.9%	-

Return for Risk

VTMSX vs. VWIUX — Risk / Return Rank

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

VTMSX

VTMSX Risk / Return Rank: 52
VTMSX Sharpe Ratio Rank: 40
VTMSX Sortino Ratio Rank: 40
VTMSX Omega Ratio Rank: 35
VTMSX Calmar Ratio Rank: 81
VTMSX Martin Ratio Rank: 63

VWIUX

VWIUX Risk / Return Rank: 70
VWIUX Sharpe Ratio Rank: 89
VWIUX Sortino Ratio Rank: 93
VWIUX Omega Ratio Rank: 95
VWIUX Calmar Ratio Rank: 37
VWIUX Martin Ratio Rank: 35

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.

VTMSX vs. VWIUX - 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 Intermediate-Term Tax-Exempt Fund Admiral Shares (VWIUX). 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	VWIUX	Difference
Sharpe ratio: Return per unit of total volatility	1.83	2.95	-1.12
Sortino ratio: Return per unit of downside risk	2.66	4.73	-2.07
Omega ratio: Gain probability vs. loss probability	1.32	1.79	-0.48
Calmar ratio: Return relative to maximum drawdown	3.72	2.32	+1.41
Martin ratio: Return relative to average drawdown	12.35	7.71	+4.64
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VTMSX vs. VWIUX - Sharpe Ratio Comparison

The current VTMSX Sharpe Ratio is 1.83, which is lower than the VWIUX Sharpe Ratio of 2.95. The chart below compares the historical Sharpe Ratios of VTMSX and VWIUX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VTMSX	VWIUX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.83	2.95	-1.12
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.27	0.52	-0.25
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.46	0.72	-0.26
Sharpe Ratio (All Time) Calculated using the full available price history	0.45	1.13	-0.67

Drawdowns

VTMSX vs. VWIUX - Drawdown Comparison

The maximum VTMSX drawdown since its inception was -57.84%, which is greater than VWIUX's maximum drawdown of -11.38%. Use the drawdown chart below to compare losses from any high point for VTMSX and VWIUX.

Drawdown Indicators

	VTMSX	VWIUX	Difference
Max Drawdown Largest peak-to-trough decline	-57.84%	-11.38%	-46.46%
Max Drawdown (1Y) Largest decline over 1 year	-8.59%	-2.99%	-5.60%
Max Drawdown (3Y) Largest decline over 3 years	-27.93%	-4.40%	-23.53%
Max Drawdown (5Y) Largest decline over 5 years	-27.93%	-11.38%	-16.55%
Max Drawdown (10Y) Largest decline over 10 years	-43.88%	-11.38%	-32.50%
Current Drawdown Current decline from peak	-0.84%	-0.95%	+0.11%
Average Drawdown Average peak-to-trough decline	-8.93%	-1.44%	-7.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.58%	0.90%	+1.68%

Volatility

VTMSX vs. VWIUX - Volatility Comparison

Vanguard Tax-Managed Small-Cap Fund Admiral Shares (VTMSX) has a higher volatility of 4.48% compared to Vanguard Intermediate-Term Tax-Exempt Fund Admiral Shares (VWIUX) at 0.88%. This indicates that VTMSX's price experiences larger fluctuations and is considered to be riskier than VWIUX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTMSX	VWIUX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.48%	0.88%	+3.60%
Volatility (6M) Calculated over the trailing 6-month period	11.71%	1.86%	+9.85%
Volatility (1Y) Calculated over the trailing 1-year period	17.55%	2.35%	+15.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.46%	3.27%	+18.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.12%	3.43%	+19.69%

VTMSX vs. VWIUX - Expense Ratio Comparison

Both VTMSX and VWIUX 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

VTMSX vs. VWIUX - Dividend Comparison

VTMSX's dividend yield for the trailing twelve months is around 1.16%, less than VWIUX's 3.33% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VWIUX Vanguard Intermediate-Term Tax-Exempt Fund Admiral Shares	3.33%	4.06%	3.63%	2.78%	2.51%	1.89%	2.40%	2.88%	2.89%	2.82%	2.91%	2.96%

Frequently Asked Questions

Can I hold both VTMSX and VWIUX in my portfolio?

VTMSX and VWIUX have a correlation of 0.15, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTMSX or VWIUX?

VTMSX has higher volatility (4.48%) compared to VWIUX (0.88%). In terms of maximum drawdown, VTMSX dropped -57.84% vs VWIUX's -11.38%.

Which has better risk-adjusted returns?

VWIUX currently has the higher Sharpe Ratio (2.95 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.