VWALX vs. HYD

Last updated Jun 23, 2026

VWALX (Vanguard High-Yield Tax-Exempt Fund Admiral Shares) and HYD (VanEck Vectors High-Yield Municipal Index ETF) are both funds - VWALX is a High Yield Muni fund actively managed by Vanguard, while HYD is a Municipal Bonds fund tracking the Bloomberg Barclays Municipal Custom High Yield Composite Index. VWALX is actively managed, while HYD is passively managed. Over the past 10 years, VWALX returned 3.07%/yr vs 1.91%/yr for HYD. At a 0.46 correlation, their price movements are largely independent. VWALX charges 0.09%/yr vs 0.35%/yr for HYD.

Performance

VWALX vs. HYD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard High-Yield Tax-Exempt Fund Admiral Shares (VWALX) and VanEck Vectors High-Yield Municipal Index ETF (HYD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VWALX achieves a 2.52% return, which is significantly higher than HYD's 2.33% return. Over the past 10 years, VWALX has outperformed HYD with an annualized return of 3.07%, while HYD has yielded a comparatively lower 1.91% annualized return.

VWALX

• 1D: 0.09%
• 1M: 2.07%
• YTD: 2.52%
• 6M: 2.98%
• 1Y: 8.54%
• 3Y*: 5.52%
• 5Y*: 1.61%
• 10Y*: 3.07%

HYD

• 1D: -0.19%
• 1M: 1.54%
• YTD: 2.33%
• 6M: 2.54%
• 1Y: 7.42%
• 3Y*: 4.24%
• 5Y*: -0.12%
• 10Y*: 1.91%

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

VWALX vs. HYD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VWALX Vanguard High-Yield Tax-Exempt Fund Admiral Shares	2.52%	5.06%	4.08%	8.45%	-11.69%	3.42%	5.49%	9.58%	1.38%	7.96%
HYD VanEck Vectors High-Yield Municipal Index ETF	2.33%	2.83%	4.94%	6.52%	-15.97%	5.05%	0.17%	9.34%	2.19%	9.78%

Correlation

The correlation between VWALX and HYD is 0.66, 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	0.66
Correlation (3Y) Calculated over the trailing 3-year period	0.69
Correlation (5Y) Calculated over the trailing 5-year period	0.65
Correlation (10Y) Calculated over the trailing 10-year period	0.55
Correlation (All Time) Calculated using the full available price history since Feb 5, 2009	0.46

Over the past year, VWALX and HYD have become more correlated (0.66) than their long-term average of 0.46, meaning their price movements have been converging.

Return for Risk

VWALX vs. HYD — Risk / Return Rank

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

VWALX

VWALX Risk / Return Rank: 77
VWALX Sharpe Ratio Rank: 88
VWALX Sortino Ratio Rank: 92
VWALX Omega Ratio Rank: 93
VWALX Calmar Ratio Rank: 59
VWALX Martin Ratio Rank: 54

HYD

HYD Risk / Return Rank: 57
HYD Sharpe Ratio Rank: 58
HYD Sortino Ratio Rank: 60
HYD Omega Ratio Rank: 69
HYD Calmar Ratio Rank: 48
HYD Martin Ratio Rank: 49

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.

VWALX vs. HYD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard High-Yield Tax-Exempt Fund Admiral Shares (VWALX) and VanEck Vectors High-Yield Municipal Index ETF (HYD). 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.

	VWALX	HYD	Difference
Sharpe ratio: Return per unit of total volatility	2.65	1.87	+0.78
Sortino ratio: Return per unit of downside risk	4.30	2.74	+1.56
Omega ratio: Gain probability vs. loss probability	1.69	1.39	+0.29
Calmar ratio: Return relative to maximum drawdown	2.81	2.33	+0.48
Martin ratio: Return relative to average drawdown	10.24	8.00	+2.24

VWALX vs. HYD - Sharpe Ratio Comparison

The current VWALX Sharpe Ratio is 2.65, which is higher than the HYD Sharpe Ratio of 1.87. The chart below compares the historical Sharpe Ratios of VWALX and HYD, 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

VWALX vs. HYD - Drawdown Comparison

The maximum VWALX drawdown since its inception was -17.24%, smaller than the maximum HYD drawdown of -35.61%. Use the drawdown chart below to compare losses from any high point for VWALX and HYD.

Drawdown Indicators

	VWALX	HYD	Difference
Max Drawdown Largest peak-to-trough decline	-17.24%	-35.61%	+18.37%
Max Drawdown (1Y) Largest decline over 1 year	-3.05%	-3.21%	+0.16%
Max Drawdown (3Y) Largest decline over 3 years	-7.10%	-7.23%	+0.13%
Max Drawdown (5Y) Largest decline over 5 years	-17.24%	-20.72%	+3.48%
Max Drawdown (10Y) Largest decline over 10 years	-17.24%	-35.61%	+18.37%
Current Drawdown Current decline from peak	0.00%	-1.84%	+1.84%
Average Drawdown Average peak-to-trough decline	-2.16%	-4.32%	+2.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.84%	0.93%	-0.09%

Volatility

VWALX vs. HYD - Volatility Comparison

The current volatility for Vanguard High-Yield Tax-Exempt Fund Admiral Shares (VWALX) is 0.88%, while VanEck Vectors High-Yield Municipal Index ETF (HYD) has a volatility of 0.95%. This indicates that VWALX experiences smaller price fluctuations and is considered to be less risky than HYD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VWALX	HYD	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.88%	0.95%	-0.07%
Volatility (6M) Calculated over the trailing 6-month period	2.39%	3.04%	-0.65%
Volatility (1Y) Calculated over the trailing 1-year period	3.23%	3.98%	-0.75%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.81%	6.46%	-1.65%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.64%	12.61%	-7.97%

VWALX vs. HYD - Expense Ratio Comparison

VWALX has a 0.09% expense ratio, which is lower than HYD's 0.35% expense ratio.

Dividends

VWALX vs. HYD - Dividend Comparison

VWALX's dividend yield for the trailing twelve months is around 4.12%, less than HYD's 4.25% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HYD VanEck Vectors High-Yield Municipal Index ETF	4.25%	4.29%	4.29%	4.13%	3.96%	3.50%	4.01%	4.08%	4.43%	4.29%	4.58%	4.82%
VWALX Vanguard High-Yield Tax-Exempt Fund Admiral Shares	4.12%	5.04%	4.47%	3.59%	3.44%	3.04%	3.40%	4.03%	3.85%	3.77%	3.86%	3.75%

Frequently Asked Questions

Can I hold both VWALX and HYD in my portfolio?

VWALX and HYD have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VWALX or HYD?

HYD has higher volatility (0.95%) compared to VWALX (0.88%). In terms of maximum drawdown, VWALX dropped -17.24% vs HYD's -35.61%.

Which has better risk-adjusted returns?

VWALX currently has the higher Sharpe Ratio (2.65 vs 1.87), 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.