VWAHX vs. PFMIX

Last updated Jun 5, 2026

VWAHX (Vanguard High-Yield Tax-Exempt Fund Investor Shares) and PFMIX (PIMCO Municipal Bond Fund) are both Municipal Bonds funds. Over the past 10 years, VWAHX returned 3.06%/yr vs 2.92%/yr for PFMIX. A 0.79 correlation means they provide meaningful diversification when combined. VWAHX charges 0.17%/yr vs 0.44%/yr for PFMIX.

Performance

VWAHX vs. PFMIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard High-Yield Tax-Exempt Fund Investor Shares (VWAHX) and PIMCO Municipal Bond Fund (PFMIX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VWAHX achieves a 2.30% return, which is significantly higher than PFMIX's 1.76% return. Both investments have delivered pretty close results over the past 10 years, with VWAHX having a 3.06% annualized return and PFMIX not far behind at 2.92%.

VWAHX

• 1D: 0.00%
• 1M: 1.01%
• YTD: 2.30%
• 6M: 2.65%
• 1Y: 8.46%
• 3Y*: 5.46%
• 5Y*: 1.56%
• 10Y*: 3.06%

PFMIX

• 1D: -0.11%
• 1M: 0.65%
• YTD: 1.76%
• 6M: 2.12%
• 1Y: 7.41%
• 3Y*: 5.38%
• 5Y*: 1.50%
• 10Y*: 2.92%

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

VWAHX vs. PFMIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VWAHX Vanguard High-Yield Tax-Exempt Fund Investor Shares	2.30%	4.96%	3.98%	8.39%	-11.76%	3.36%	5.39%	9.48%	1.31%	7.86%
PFMIX PIMCO Municipal Bond Fund	1.76%	5.70%	3.60%	8.04%	-11.32%	2.55%	5.89%	8.67%	1.41%	7.47%

Correlation

The correlation between VWAHX and PFMIX is 0.91, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.92
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (10Y) Calculated over the trailing 10-year period	0.90
Correlation (All Time) Calculated using the full available price history since Jan 2, 1998	0.79

The correlation between VWAHX and PFMIX shifts across timeframes, from 0.79 (all time) to 0.93 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

VWAHX vs. PFMIX — Risk / Return Rank

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

VWAHX

VWAHX Risk / Return Rank: 74
VWAHX Sharpe Ratio Rank: 83
VWAHX Sortino Ratio Rank: 89
VWAHX Omega Ratio Rank: 92
VWAHX Calmar Ratio Rank: 56
VWAHX Martin Ratio Rank: 52

PFMIX

PFMIX Risk / Return Rank: 73
PFMIX Sharpe Ratio Rank: 83
PFMIX Sortino Ratio Rank: 91
PFMIX Omega Ratio Rank: 91
PFMIX Calmar Ratio Rank: 54
PFMIX Martin Ratio Rank: 45

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.

VWAHX vs. PFMIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard High-Yield Tax-Exempt Fund Investor Shares (VWAHX) and PIMCO Municipal Bond Fund (PFMIX). 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.

	VWAHX	PFMIX	Difference
Sharpe ratio: Return per unit of total volatility	2.72	2.71	+0.01
Sortino ratio: Return per unit of downside risk	4.41	4.55	-0.13
Omega ratio: Gain probability vs. loss probability	1.70	1.69	+0.01
Calmar ratio: Return relative to maximum drawdown	2.89	2.78	+0.11
Martin ratio: Return relative to average drawdown	10.50	9.35	+1.14
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VWAHX vs. PFMIX - Sharpe Ratio Comparison

The current VWAHX Sharpe Ratio is 2.72, which is comparable to the PFMIX Sharpe Ratio of 2.71. The chart below compares the historical Sharpe Ratios of VWAHX and PFMIX, 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

	VWAHX	PFMIX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.72	2.71	+0.01
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.33	0.36	-0.04
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.66	0.73	-0.07
Sharpe Ratio (All Time) Calculated using the full available price history	0.65	1.01	-0.36

Drawdowns

VWAHX vs. PFMIX - Drawdown Comparison

The maximum VWAHX drawdown since its inception was -40.26%, which is greater than PFMIX's maximum drawdown of -26.51%. Use the drawdown chart below to compare losses from any high point for VWAHX and PFMIX.

Drawdown Indicators

	VWAHX	PFMIX	Difference
Max Drawdown Largest peak-to-trough decline	-40.26%	-26.51%	-13.75%
Max Drawdown (1Y) Largest decline over 1 year	-3.05%	-2.82%	-0.23%
Max Drawdown (3Y) Largest decline over 3 years	-7.12%	-5.49%	-1.63%
Max Drawdown (5Y) Largest decline over 5 years	-17.32%	-16.11%	-1.21%
Max Drawdown (10Y) Largest decline over 10 years	-17.32%	-16.11%	-1.21%
Current Drawdown Current decline from peak	0.00%	-0.49%	+0.49%
Average Drawdown Average peak-to-trough decline	-6.93%	-2.43%	-4.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.84%	0.83%	+0.01%

Volatility

VWAHX vs. PFMIX - Volatility Comparison

Vanguard High-Yield Tax-Exempt Fund Investor Shares (VWAHX) has a higher volatility of 1.26% compared to PIMCO Municipal Bond Fund (PFMIX) at 1.09%. This indicates that VWAHX's price experiences larger fluctuations and is considered to be riskier than PFMIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VWAHX	PFMIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.26%	1.09%	+0.17%
Volatility (6M) Calculated over the trailing 6-month period	2.38%	2.07%	+0.31%
Volatility (1Y) Calculated over the trailing 1-year period	3.24%	2.90%	+0.34%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.80%	4.16%	+0.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.64%	4.02%	+0.62%

VWAHX vs. PFMIX - Expense Ratio Comparison

VWAHX has a 0.17% expense ratio, which is lower than PFMIX's 0.44% expense ratio.

Dividends

VWAHX vs. PFMIX - Dividend Comparison

VWAHX's dividend yield for the trailing twelve months is around 4.05%, more than PFMIX's 3.99% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PFMIX PIMCO Municipal Bond Fund	3.99%	5.15%	4.73%	3.44%	2.25%	2.13%	2.45%	3.51%	3.77%	3.45%	3.44%	3.49%
VWAHX Vanguard High-Yield Tax-Exempt Fund Investor Shares	4.05%	4.95%	4.38%	3.53%	3.36%	2.98%	3.31%	3.94%	3.78%	3.68%	3.75%	3.67%

Frequently Asked Questions

Can I hold both VWAHX and PFMIX in my portfolio?

With a correlation of 0.91, VWAHX and PFMIX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VWAHX or PFMIX?

VWAHX has higher volatility (1.26%) compared to PFMIX (1.09%). In terms of maximum drawdown, VWAHX dropped -40.26% vs PFMIX's -26.51%.

Which has better risk-adjusted returns?

VWAHX currently has the higher Sharpe Ratio (2.72 vs 2.71), 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.