VWETX vs. VWALX
VWETX (Vanguard Long-Term Investment-Grade Fund Admiral Shares) and VWALX (Vanguard High-Yield Tax-Exempt Fund Admiral Shares) are both mutual funds - VWETX is a Total Bond Market fund managed by Vanguard, while VWALX is a Municipal Bonds fund managed by Vanguard. Over the past 10 years, VWETX returned 1.67%/yr vs 3.14%/yr for VWALX. A 0.54 correlation means they provide meaningful diversification when combined. VWETX charges 0.12%/yr vs 0.09%/yr for VWALX.
Performance
VWETX vs. VWALX - Performance Comparison
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Returns By Period
In the year-to-date period, VWETX achieves a 0.46% return, which is significantly lower than VWALX's 2.33% return. Over the past 10 years, VWETX has underperformed VWALX with an annualized return of 1.67%, while VWALX has yielded a comparatively higher 3.14% annualized return.
VWETX
- 1D
- -0.40%
- 1M
- 0.71%
- YTD
- 0.46%
- 6M
- -0.16%
- 1Y
- 6.09%
- 3Y*
- 3.30%
- 5Y*
- -2.37%
- 10Y*
- 1.67%
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%
VWETX vs. VWALX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VWETX Vanguard Long-Term Investment-Grade Fund Admiral Shares | 0.46% | 7.31% | -2.70% | 8.92% | -25.54% | -2.79% | 15.50% | 20.56% | -6.17% | 12.08% |
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% |
Correlation
The correlation between VWETX and VWALX is 0.59, 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 | 0.59 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.62 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.54 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.51 |
Correlation (All Time) Calculated using the full available price history since Nov 13, 2001 | 0.54 |
The correlation between VWETX and VWALX shifts across timeframes, from 0.51 (10 years) to 0.62 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
VWETX vs. VWALX — Risk / Return Rank
VWETX
VWALX
VWETX vs. VWALX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Investment-Grade Fund Admiral Shares (VWETX) and Vanguard High-Yield Tax-Exempt Fund Admiral Shares (VWALX). 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.
| VWETX | VWALX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.79 | ||
| Sortino ratioReturn per unit of downside risk | -3.05 | ||
| Omega ratioGain probability vs. loss probability | 1.16 | 1.71 | -0.54 |
| Calmar ratioReturn relative to maximum drawdown | 1.45 | 2.92 | -1.47 |
| Martin ratioReturn relative to average drawdown | 3.69 | 10.63 | -6.95 |
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
| VWETX | VWALX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.94 | 2.74 | -1.79 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.20 | 0.34 | -0.54 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.15 | 0.68 | -0.52 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.49 | 1.09 | -0.60 |
Drawdowns
VWETX vs. VWALX - Drawdown Comparison
The maximum VWETX drawdown since its inception was -36.04%, which is greater than VWALX's maximum drawdown of -17.24%. Use the drawdown chart below to compare losses from any high point for VWETX and VWALX.
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Drawdown Indicators
| VWETX | VWALX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -36.04% | -17.24% | -18.80% |
Max Drawdown (1Y)Largest decline over 1 year | -5.12% | -3.05% | -2.07% |
Max Drawdown (3Y)Largest decline over 3 years | -13.33% | -7.10% | -6.23% |
Max Drawdown (5Y)Largest decline over 5 years | -34.42% | -17.24% | -17.18% |
Max Drawdown (10Y)Largest decline over 10 years | -36.04% | -17.24% | -18.80% |
Current DrawdownCurrent decline from peak | -18.87% | 0.00% | -18.87% |
Average DrawdownAverage peak-to-trough decline | -7.20% | -2.17% | -5.03% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.01% | 0.84% | +1.17% |
Volatility
VWETX vs. VWALX - Volatility Comparison
Vanguard Long-Term Investment-Grade Fund Admiral Shares (VWETX) has a higher volatility of 2.50% compared to Vanguard High-Yield Tax-Exempt Fund Admiral Shares (VWALX) at 1.27%. This indicates that VWETX's price experiences larger fluctuations and is considered to be riskier than VWALX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VWETX | VWALX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.50% | 1.27% | +1.23% |
Volatility (6M)Calculated over the trailing 6-month period | 5.54% | 2.39% | +3.15% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.86% | 3.25% | +4.61% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.10% | 4.81% | +7.29% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 10.86% | 4.64% | +6.22% |
VWETX vs. VWALX - Expense Ratio Comparison
VWETX has a 0.12% expense ratio, which is higher than VWALX's 0.09% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
VWETX vs. VWALX - Dividend Comparison
VWETX's dividend yield for the trailing twelve months is around 5.19%, more than VWALX's 4.13% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
VWETX Vanguard Long-Term Investment-Grade Fund Admiral Shares | 5.19% | 5.06% | 5.10% | 4.26% | 4.54% | 4.86% | 6.99% | 5.11% | 4.40% | 5.60% | 6.25% | 7.49% |
Frequently Asked Questions
VWETX and VWALX have a correlation of 0.59, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VWETX has higher volatility (2.50%) compared to VWALX (1.27%). In terms of maximum drawdown, VWETX dropped -36.04% vs VWALX's -17.24%.
VWALX currently has the higher Sharpe Ratio (2.74 vs 0.94), 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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