VWLTX vs. VNJTX

Last updated Jun 5, 2026

VWLTX (Vanguard Long-Term Tax-Exempt Fund Investor Shares) and VNJTX (Vanguard New Jersey Long-Term Tax-Exempt Fund Investor Shares) are both Municipal Bonds funds from Vanguard. Over the past 10 years, VWLTX returned 2.61%/yr vs 3.07%/yr for VNJTX. Their correlation of 0.90 suggests significant overlap in exposure. Both charge a 0.17% expense ratio.

Performance

VWLTX vs. VNJTX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Long-Term Tax-Exempt Fund Investor Shares (VWLTX) and Vanguard New Jersey Long-Term Tax-Exempt Fund Investor Shares (VNJTX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with VWLTX having a 1.85% return and VNJTX slightly higher at 1.94%. Over the past 10 years, VWLTX has underperformed VNJTX with an annualized return of 2.61%, while VNJTX has yielded a comparatively higher 3.07% annualized return.

VWLTX

• 1D: -0.09%
• 1M: 0.78%
• YTD: 1.85%
• 6M: 2.26%
• 1Y: 7.99%
• 3Y*: 4.64%
• 5Y*: 1.20%
• 10Y*: 2.61%

VNJTX

• 1D: 0.00%
• 1M: 0.74%
• YTD: 1.94%
• 6M: 2.25%
• 1Y: 8.54%
• 3Y*: 4.75%
• 5Y*: 1.43%
• 10Y*: 3.07%

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

VWLTX vs. VNJTX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VWLTX Vanguard Long-Term Tax-Exempt Fund Investor Shares	1.85%	4.80%	2.44%	7.56%	-10.43%	1.83%	6.21%	8.77%	0.89%	6.45%
VNJTX Vanguard New Jersey Long-Term Tax-Exempt Fund Investor Shares	1.94%	4.89%	2.69%	8.04%	-10.31%	2.62%	6.02%	9.27%	1.53%	8.37%

Correlation

The correlation between VWLTX and VNJTX 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	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.92
Correlation (All Time) Calculated using the full available price history since Feb 4, 1988	0.90

The correlation between VWLTX and VNJTX has been stable across timeframes, ranging from 0.88 to 0.94 - a consistent structural relationship.

Return for Risk

VWLTX vs. VNJTX — Risk / Return Rank

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

VWLTX

VWLTX Risk / Return Rank: 72
VWLTX Sharpe Ratio Rank: 83
VWLTX Sortino Ratio Rank: 89
VWLTX Omega Ratio Rank: 91
VWLTX Calmar Ratio Rank: 50
VWLTX Martin Ratio Rank: 46

VNJTX

VNJTX Risk / Return Rank: 77
VNJTX Sharpe Ratio Rank: 88
VNJTX Sortino Ratio Rank: 92
VNJTX Omega Ratio Rank: 92
VNJTX Calmar Ratio Rank: 61
VNJTX Martin Ratio Rank: 53

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.

VWLTX vs. VNJTX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Tax-Exempt Fund Investor Shares (VWLTX) and Vanguard New Jersey Long-Term Tax-Exempt Fund Investor Shares (VNJTX). 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.

	VWLTX	VNJTX	Difference
Sharpe ratio: Return per unit of total volatility	2.71	2.90	-0.18
Sortino ratio: Return per unit of downside risk	4.35	4.60	-0.25
Omega ratio: Gain probability vs. loss probability	1.68	1.71	-0.03
Calmar ratio: Return relative to maximum drawdown	2.70	2.99	-0.29
Martin ratio: Return relative to average drawdown	9.64	10.74	-1.10
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VWLTX vs. VNJTX - Sharpe Ratio Comparison

The current VWLTX Sharpe Ratio is 2.71, which is comparable to the VNJTX Sharpe Ratio of 2.90. The chart below compares the historical Sharpe Ratios of VWLTX and VNJTX, 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

	VWLTX	VNJTX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.71	2.90	-0.18
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.26	0.32	-0.05
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.58	0.67	-0.09
Sharpe Ratio (All Time) Calculated using the full available price history	0.54	1.25	-0.72

Drawdowns

VWLTX vs. VNJTX - Drawdown Comparison

The maximum VWLTX drawdown since its inception was -49.97%, which is greater than VNJTX's maximum drawdown of -15.71%. Use the drawdown chart below to compare losses from any high point for VWLTX and VNJTX.

Drawdown Indicators

	VWLTX	VNJTX	Difference
Max Drawdown Largest peak-to-trough decline	-49.97%	-15.71%	-34.26%
Max Drawdown (1Y) Largest decline over 1 year	-3.09%	-2.94%	-0.15%
Max Drawdown (3Y) Largest decline over 3 years	-6.92%	-6.88%	-0.04%
Max Drawdown (5Y) Largest decline over 5 years	-16.01%	-15.71%	-0.30%
Max Drawdown (10Y) Largest decline over 10 years	-16.01%	-15.71%	-0.30%
Current Drawdown Current decline from peak	-0.34%	-0.23%	-0.11%
Average Drawdown Average peak-to-trough decline	-10.18%	-1.86%	-8.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.86%	0.82%	+0.04%

Volatility

VWLTX vs. VNJTX - Volatility Comparison

Vanguard Long-Term Tax-Exempt Fund Investor Shares (VWLTX) has a higher volatility of 1.26% compared to Vanguard New Jersey Long-Term Tax-Exempt Fund Investor Shares (VNJTX) at 1.14%. This indicates that VWLTX's price experiences larger fluctuations and is considered to be riskier than VNJTX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VWLTX	VNJTX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.26%	1.14%	+0.12%
Volatility (6M) Calculated over the trailing 6-month period	2.31%	2.24%	+0.07%
Volatility (1Y) Calculated over the trailing 1-year period	3.07%	3.04%	+0.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.60%	4.55%	+0.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.51%	4.56%	-0.05%

VWLTX vs. VNJTX - Expense Ratio Comparison

Both VWLTX and VNJTX have an expense ratio of 0.17%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VWLTX vs. VNJTX - Dividend Comparison

VWLTX's dividend yield for the trailing twelve months is around 3.69%, more than VNJTX's 3.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VNJTX Vanguard New Jersey Long-Term Tax-Exempt Fund Investor Shares	3.58%	4.42%	3.97%	3.26%	3.14%	2.84%	3.71%	4.06%	3.93%	4.03%	4.51%	3.70%
VWLTX Vanguard Long-Term Tax-Exempt Fund Investor Shares	3.69%	4.51%	3.98%	3.09%	2.91%	2.65%	3.24%	3.82%	3.49%	3.70%	3.98%	3.79%

Frequently Asked Questions

Can I hold both VWLTX and VNJTX in my portfolio?

VWLTX and VNJTX 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, VWLTX or VNJTX?

VWLTX has higher volatility (1.26%) compared to VNJTX (1.14%). In terms of maximum drawdown, VWLTX dropped -49.97% vs VNJTX's -15.71%.

Which has better risk-adjusted returns?

VNJTX currently has the higher Sharpe Ratio (2.90 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.