VWALX vs. PHMIX

Last updated Jun 5, 2026

VWALX (Vanguard High-Yield Tax-Exempt Fund Admiral Shares) and PHMIX (PIMCO High Yield Municipal Bond Fund) are both mutual funds - VWALX is a Municipal Bonds fund managed by Vanguard, while PHMIX is a High Yield Muni fund managed by PIMCO. Over the past 10 years, VWALX returned 3.14%/yr vs 3.70%/yr for PHMIX. A 0.78 correlation means they provide meaningful diversification when combined. VWALX charges 0.09%/yr vs 0.55%/yr for PHMIX.

Performance

VWALX vs. PHMIX - 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 PIMCO High Yield Municipal Bond Fund (PHMIX). 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 VWALX having a 2.33% return and PHMIX slightly lower at 2.30%. Over the past 10 years, VWALX has underperformed PHMIX with an annualized return of 3.14%, while PHMIX has yielded a comparatively higher 3.70% annualized return.

VWALX

• 1D: 0.00%
• 1M: 1.01%
• YTD: 2.33%
• 6M: 2.69%
• 1Y: 8.55%
• 3Y*: 5.55%
• 5Y*: 1.64%
• 10Y*: 3.14%

PHMIX

• 1D: -0.12%
• 1M: 0.75%
• YTD: 2.30%
• 6M: 2.59%
• 1Y: 7.28%
• 3Y*: 6.01%
• 5Y*: 1.57%
• 10Y*: 3.70%

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

VWALX vs. PHMIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VWALX Vanguard High-Yield Tax-Exempt Fund Admiral Shares	2.33%	5.06%	4.08%	8.45%	-11.69%	3.42%	5.49%	9.58%	1.38%	7.96%
PHMIX PIMCO High Yield Municipal Bond Fund	2.30%	5.00%	5.33%	8.97%	-13.90%	5.51%	6.21%	10.77%	2.28%	9.83%

Correlation

The correlation between VWALX and PHMIX is 0.88, 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	0.88
Correlation (3Y) Calculated over the trailing 3-year period	0.90
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.87
Correlation (All Time) Calculated using the full available price history since Aug 2, 2006	0.78

The correlation between VWALX and PHMIX shifts across timeframes, from 0.78 (all time) to 0.91 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

VWALX vs. PHMIX — Risk / Return Rank

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

VWALX

VWALX Risk / Return Rank: 75
VWALX Sharpe Ratio Rank: 83
VWALX Sortino Ratio Rank: 90
VWALX Omega Ratio Rank: 92
VWALX Calmar Ratio Rank: 58
VWALX Martin Ratio Rank: 52

PHMIX

PHMIX Risk / Return Rank: 59
PHMIX Sharpe Ratio Rank: 57
PHMIX Sortino Ratio Rank: 71
PHMIX Omega Ratio Rank: 77
PHMIX Calmar Ratio Rank: 48
PHMIX Martin Ratio Rank: 42

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. PHMIX - 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 PIMCO High Yield Municipal Bond Fund (PHMIX). 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.

	VWALX	PHMIX	Difference
Sharpe ratio: Return per unit of total volatility	2.74	2.23	+0.50
Sortino ratio: Return per unit of downside risk	4.45	3.51	+0.94
Omega ratio: Gain probability vs. loss probability	1.71	1.51	+0.20
Calmar ratio: Return relative to maximum drawdown	2.92	2.64	+0.28
Martin ratio: Return relative to average drawdown	10.63	8.98	+1.65
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VWALX vs. PHMIX - Sharpe Ratio Comparison

The current VWALX Sharpe Ratio is 2.74, which is comparable to the PHMIX Sharpe Ratio of 2.23. The chart below compares the historical Sharpe Ratios of VWALX and PHMIX, 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

	VWALX	PHMIX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.74	2.23	+0.50
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.34	0.32	+0.02
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.68	0.79	-0.11
Sharpe Ratio (All Time) Calculated using the full available price history	1.09	0.87	+0.22

Drawdowns

VWALX vs. PHMIX - Drawdown Comparison

The maximum VWALX drawdown since its inception was -17.24%, smaller than the maximum PHMIX drawdown of -35.54%. Use the drawdown chart below to compare losses from any high point for VWALX and PHMIX.

Drawdown Indicators

	VWALX	PHMIX	Difference
Max Drawdown Largest peak-to-trough decline	-17.24%	-35.54%	+18.30%
Max Drawdown (1Y) Largest decline over 1 year	-3.05%	-2.93%	-0.12%
Max Drawdown (3Y) Largest decline over 3 years	-7.10%	-6.50%	-0.60%
Max Drawdown (5Y) Largest decline over 5 years	-17.24%	-18.96%	+1.72%
Max Drawdown (10Y) Largest decline over 10 years	-17.24%	-18.96%	+1.72%
Current Drawdown Current decline from peak	0.00%	-0.14%	+0.14%
Average Drawdown Average peak-to-trough decline	-2.17%	-4.96%	+2.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.84%	0.86%	-0.02%

Volatility

VWALX vs. PHMIX - Volatility Comparison

The current volatility for Vanguard High-Yield Tax-Exempt Fund Admiral Shares (VWALX) is 1.27%, while PIMCO High Yield Municipal Bond Fund (PHMIX) has a volatility of 1.35%. This indicates that VWALX experiences smaller price fluctuations and is considered to be less risky than PHMIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VWALX	PHMIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.27%	1.35%	-0.08%
Volatility (6M) Calculated over the trailing 6-month period	2.39%	2.55%	-0.16%
Volatility (1Y) Calculated over the trailing 1-year period	3.25%	3.46%	-0.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.81%	4.88%	-0.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.64%	4.71%	-0.07%

VWALX vs. PHMIX - Expense Ratio Comparison

VWALX has a 0.09% expense ratio, which is lower than PHMIX's 0.55% expense ratio.

Dividends

VWALX vs. PHMIX - Dividend Comparison

VWALX's dividend yield for the trailing twelve months is around 4.13%, less than PHMIX's 4.57% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PHMIX PIMCO High Yield Municipal Bond Fund	4.57%	5.91%	5.33%	4.71%	3.39%	3.84%	3.62%	4.38%	4.41%	4.22%	4.12%	4.46%
VWALX Vanguard High-Yield Tax-Exempt Fund Admiral Shares	4.13%	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 PHMIX in my portfolio?

VWALX and PHMIX have a correlation of 0.88, 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 PHMIX?

PHMIX has higher volatility (1.35%) compared to VWALX (1.27%). In terms of maximum drawdown, VWALX dropped -17.24% vs PHMIX's -35.54%.

Which has better risk-adjusted returns?

VWALX currently has the higher Sharpe Ratio (2.74 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.