VWLTX vs. VWALX
VWLTX (Vanguard Long-Term Tax-Exempt Fund Investor Shares) and VWALX (Vanguard High-Yield Tax-Exempt Fund Admiral Shares) are both Municipal Bonds funds from Vanguard. Over the past 10 years, VWLTX returned 2.61%/yr vs 3.14%/yr for VWALX. Their correlation of 0.92 suggests significant overlap in exposure. VWLTX charges 0.17%/yr vs 0.09%/yr for VWALX.
Performance
VWLTX vs. VWALX - Performance Comparison
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Returns By Period
In the year-to-date period, VWLTX achieves a 1.85% return, which is significantly lower than VWALX's 2.33% return. Over the past 10 years, VWLTX has underperformed VWALX with an annualized return of 2.61%, while VWALX has yielded a comparatively higher 3.14% 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%
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%
VWLTX vs. VWALX - 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% |
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 VWLTX and VWALX 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 | 0.94 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.95 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.93 |
Correlation (All Time) Calculated using the full available price history since Nov 13, 2001 | 0.92 |
The correlation between VWLTX and VWALX has been stable across timeframes, ranging from 0.91 to 0.95 - a consistent structural relationship.
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Return for Risk
VWLTX vs. VWALX — Risk / Return Rank
VWLTX
VWALX
VWLTX vs. VWALX - 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 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.
| VWLTX | VWALX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.02 | ||
| Sortino ratioReturn per unit of downside risk | -0.11 | ||
| Omega ratioGain probability vs. loss probability | 1.68 | 1.71 | -0.03 |
| Calmar ratioReturn relative to maximum drawdown | 2.70 | 2.92 | -0.22 |
| Martin ratioReturn relative to average drawdown | 9.64 | 10.63 | -0.99 |
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
| VWLTX | VWALX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.71 | 2.74 | -0.02 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.26 | 0.34 | -0.08 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.58 | 0.68 | -0.10 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.54 | 1.09 | -0.55 |
Drawdowns
VWLTX vs. VWALX - Drawdown Comparison
The maximum VWLTX drawdown since its inception was -49.97%, which is greater than VWALX's maximum drawdown of -17.24%. Use the drawdown chart below to compare losses from any high point for VWLTX and VWALX.
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Drawdown Indicators
| VWLTX | VWALX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -49.97% | -17.24% | -32.73% |
Max Drawdown (1Y)Largest decline over 1 year | -3.09% | -3.05% | -0.04% |
Max Drawdown (3Y)Largest decline over 3 years | -6.92% | -7.10% | +0.18% |
Max Drawdown (5Y)Largest decline over 5 years | -16.01% | -17.24% | +1.23% |
Max Drawdown (10Y)Largest decline over 10 years | -16.01% | -17.24% | +1.23% |
Current DrawdownCurrent decline from peak | -0.34% | 0.00% | -0.34% |
Average DrawdownAverage peak-to-trough decline | -10.18% | -2.17% | -8.01% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.86% | 0.84% | +0.02% |
Volatility
VWLTX vs. VWALX - Volatility Comparison
Vanguard Long-Term Tax-Exempt Fund Investor Shares (VWLTX) and Vanguard High-Yield Tax-Exempt Fund Admiral Shares (VWALX) have volatilities of 1.26% and 1.27%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VWLTX | VWALX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.26% | 1.27% | -0.01% |
Volatility (6M)Calculated over the trailing 6-month period | 2.31% | 2.39% | -0.08% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.07% | 3.25% | -0.18% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.60% | 4.81% | -0.21% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.51% | 4.64% | -0.13% |
VWLTX vs. VWALX - Expense Ratio Comparison
VWLTX has a 0.17% 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
VWLTX vs. VWALX - Dividend Comparison
VWLTX's dividend yield for the trailing twelve months is around 3.69%, less 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% |
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
With a correlation of 0.91, VWLTX and VWALX 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.
VWALX has higher volatility (1.27%) compared to VWLTX (1.26%). In terms of maximum drawdown, VWLTX dropped -49.97% vs VWALX's -17.24%.
VWALX currently has the higher Sharpe Ratio (2.74 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.
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