VWLUX vs. VDIGX

Last updated Aug 5, 2026

VWLUX (Vanguard Long-Term Tax-Exempt Fund Admiral Shares) and VDIGX (Vanguard Dividend Growth Fund) are both mutual funds - VWLUX is a Municipal Bonds fund managed by Vanguard, while VDIGX is a Dividend fund actively managed by Vanguard. Over the past 10 years, VWLUX returned 2.42%/yr vs 12.20%/yr for VDIGX. Their -0.09 correlation means they have often moved in opposite directions in the past. VWLUX charges 0.09%/yr vs 0.20%/yr for VDIGX.

Performance

VWLUX vs. VDIGX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Long-Term Tax-Exempt Fund Admiral Shares (VWLUX) and Vanguard Dividend Growth Fund (VDIGX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VWLUX achieves a 0.42% return, which is significantly lower than VDIGX's 5.63% return. Over the past 10 years, VWLUX has underperformed VDIGX with an annualized return of 2.42%, while VDIGX has yielded a comparatively higher 12.20% annualized return.

VWLUX

• 1D: 0.00%
• 1M: -2.29%
• 6M: -0.35%
• YTD: 0.42%
• 1Y: 5.74%
• 3Y*: 4.37%
• 5Y*: 0.79%
• 10Y*: 2.42%
• ALL TIME*: 3.81%

VDIGX

• 1D: 0.53%
• 1M: 0.16%
• 6M: 4.68%
• YTD: 5.63%
• 1Y: 11.26%
• 3Y*: 14.29%
• 5Y*: 9.72%
• 10Y*: 12.20%
• ALL TIME*: 9.36%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
VDIGX Vanguard Dividend Growth Fund	$0.00	$0.00	$0.00
VWLUX Vanguard Long-Term Tax-Exempt Fund Admiral Shares	$0.00	$0.00	$0.00

VWLUX vs. VDIGX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VWLUX Vanguard Long-Term Tax-Exempt Fund Admiral Shares	0.42%	4.90%	2.54%	7.65%	-10.35%	1.89%	6.29%	8.87%	0.99%	6.56%
VDIGX Vanguard Dividend Growth Fund	5.63%	11.11%	20.84%	8.11%	-4.89%	24.86%	12.04%	30.94%	0.08%	19.32%

Correlation

The correlation between VWLUX and VDIGX is 0.28, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.28
Correlation (3Y) Balances recent behavior with more history.	0.19
Correlation (5Y) Shows whether the relationship held over a longer period.	0.14
Correlation (10Y) Provides a long-term view across more market conditions.	0.04
Correlation (All Time) Calculated using the full available price history since Feb 12, 2001	-0.09

The correlation between VWLUX and VDIGX shifts across timeframes, from -0.09 (all time) to 0.28 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

VWLUX vs. VDIGX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VWLUX

VWLUX Risk / Return Rank: 66
VWLUX Sharpe Ratio Rank: 77
VWLUX Sortino Ratio Rank: 81
VWLUX Omega Ratio Rank: 88
VWLUX Calmar Ratio Rank: 44
VWLUX Martin Ratio Rank: 41

VDIGX

VDIGX Risk / Return Rank: 34
VDIGX Sharpe Ratio Rank: 36
VDIGX Sortino Ratio Rank: 38
VDIGX Omega Ratio Rank: 33
VDIGX Calmar Ratio Rank: 29
VDIGX Martin Ratio Rank: 35

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VWLUX vs. VDIGX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Tax-Exempt Fund Admiral Shares (VWLUX) and Vanguard Dividend Growth Fund (VDIGX). 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.

	VWLUX	VDIGX	Difference
Sharpe ratio: Return per unit of total volatility	1.89	1.24	+0.65
Sortino ratio: Return per unit of downside risk	2.85	1.86	+0.99
Omega ratio: Gain probability vs. loss probability	1.45	1.22	+0.23
Calmar ratio: Return relative to maximum drawdown	1.90	1.39	+0.51
Martin ratio: Return relative to average drawdown	6.36	5.50	+0.85

VWLUX vs. VDIGX - Sharpe Ratio Comparison

The current VWLUX Sharpe Ratio is 1.89, which is higher than the VDIGX Sharpe Ratio of 1.24. The chart below compares the historical Sharpe Ratios of VWLUX and VDIGX, 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

VWLUX vs. VDIGX - Drawdown Comparison

The maximum VWLUX drawdown since its inception was -15.94%, smaller than the maximum VDIGX drawdown of -45.23%. Use the drawdown chart below to compare losses from any high point for VWLUX and VDIGX.

Drawdown Indicators

	VWLUX	VDIGX	Difference
Max Drawdown Largest peak-to-trough decline	-15.94%	-45.23%	+29.29%
Max Drawdown (1Y) Largest decline over 1 year	-3.09%	-9.09%	+6.00%
Max Drawdown (3Y) Largest decline over 3 years	-5.76%	-10.23%	+4.47%
Max Drawdown (5Y) Largest decline over 5 years	-15.81%	-16.18%	+0.37%
Max Drawdown (10Y) Largest decline over 10 years	-15.94%	-32.98%	+17.04%
Current Drawdown Current decline from peak	-2.29%	-0.19%	-2.10%
Average Drawdown Average peak-to-trough decline	-2.08%	-6.62%	+4.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.92%	2.29%	-1.37%

Volatility

VWLUX vs. VDIGX - Volatility Comparison

The current volatility for Vanguard Long-Term Tax-Exempt Fund Admiral Shares (VWLUX) is 1.00%, while Vanguard Dividend Growth Fund (VDIGX) has a volatility of 2.64%. This indicates that VWLUX experiences smaller price fluctuations and is considered to be less risky than VDIGX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VWLUX	VDIGX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.00%	2.64%	-1.64%
Volatility (6M) Calculated over the trailing 6-month period	2.51%	7.91%	-5.40%
Volatility (1Y) Calculated over the trailing 1-year period	3.11%	10.21%	-7.10%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.63%	13.86%	-9.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.52%	15.68%	-11.16%

VWLUX vs. VDIGX - Expense Ratio Comparison

VWLUX has a 0.09% expense ratio, which is lower than VDIGX's 0.20% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VWLUX vs. VDIGX - Dividend Comparison

VWLUX's dividend yield for the trailing twelve months is around 3.54%, less than VDIGX's 23.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VDIGX Vanguard Dividend Growth Fund	23.24%	21.90%	21.94%	2.29%	6.06%	5.45%	2.83%	4.70%	8.72%	5.16%	2.86%	5.70%
VWLUX Vanguard Long-Term Tax-Exempt Fund Admiral Shares	3.54%	4.61%	4.08%	3.17%	3.00%	2.70%	3.32%	3.91%	3.58%	3.80%	4.09%	3.87%

Frequently Asked Questions

Can I hold both VWLUX and VDIGX in my portfolio?

VWLUX and VDIGX have a correlation of 0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VWLUX or VDIGX?

VDIGX has higher volatility (2.64%) compared to VWLUX (1.00%). In terms of maximum drawdown, VWLUX dropped -15.94% vs VDIGX's -45.23%.

Which has better risk-adjusted returns?

VWLUX currently has the higher Sharpe Ratio (1.89 vs 1.24), 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.