VWLUX vs. VWETX
VWLUX (Vanguard Long-Term Tax-Exempt Fund Admiral Shares) and VWETX (Vanguard Long-Term Investment-Grade Fund Admiral Shares) are both mutual funds - VWLUX is a Municipal Bonds fund managed by Vanguard, while VWETX is a Total Bond Market fund managed by Vanguard. Over the past 10 years, VWLUX returned 2.70%/yr vs 1.67%/yr for VWETX. A 0.54 correlation means they provide meaningful diversification when combined. VWLUX charges 0.09%/yr vs 0.12%/yr for VWETX.
Performance
VWLUX vs. VWETX - Performance Comparison
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Returns By Period
In the year-to-date period, VWLUX achieves a 1.88% return, which is significantly higher than VWETX's 0.46% return. Over the past 10 years, VWLUX has outperformed VWETX with an annualized return of 2.70%, while VWETX has yielded a comparatively lower 1.67% annualized return.
VWLUX
- 1D
- -0.09%
- 1M
- 0.78%
- YTD
- 1.88%
- 6M
- 2.30%
- 1Y
- 8.07%
- 3Y*
- 4.74%
- 5Y*
- 1.29%
- 10Y*
- 2.70%
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%
VWLUX vs. VWETX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VWLUX Vanguard Long-Term Tax-Exempt Fund Admiral Shares | 1.88% | 4.90% | 2.54% | 7.65% | -10.35% | 1.89% | 6.29% | 8.87% | 0.99% | 6.56% |
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% |
Correlation
The correlation between VWLUX and VWETX is 0.57, 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 | 0.57 |
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 Feb 13, 2001 | 0.54 |
The correlation between VWLUX and VWETX 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
VWLUX vs. VWETX — Risk / Return Rank
VWLUX
VWETX
VWLUX vs. VWETX - 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 Long-Term Investment-Grade Fund Admiral Shares (VWETX). 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.
| VWLUX | VWETX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.79 | ||
| Sortino ratioReturn per unit of downside risk | +2.99 | ||
| Omega ratioGain probability vs. loss probability | 1.69 | 1.16 | +0.53 |
| Calmar ratioReturn relative to maximum drawdown | 2.73 | 1.45 | +1.28 |
| Martin ratioReturn relative to average drawdown | 9.77 | 3.69 | +6.09 |
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
| VWLUX | VWETX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.73 | 0.94 | +1.79 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.28 | -0.20 | +0.48 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.60 | 0.15 | +0.45 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.99 | 0.49 | +0.50 |
Drawdowns
VWLUX vs. VWETX - Drawdown Comparison
The maximum VWLUX drawdown since its inception was -15.94%, smaller than the maximum VWETX drawdown of -36.04%. Use the drawdown chart below to compare losses from any high point for VWLUX and VWETX.
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Drawdown Indicators
| VWLUX | VWETX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -15.94% | -36.04% | +20.10% |
Max Drawdown (1Y)Largest decline over 1 year | -3.09% | -5.12% | +2.03% |
Max Drawdown (3Y)Largest decline over 3 years | -6.90% | -13.33% | +6.43% |
Max Drawdown (5Y)Largest decline over 5 years | -15.94% | -34.42% | +18.48% |
Max Drawdown (10Y)Largest decline over 10 years | -15.94% | -36.04% | +20.10% |
Current DrawdownCurrent decline from peak | -0.32% | -18.87% | +18.55% |
Average DrawdownAverage peak-to-trough decline | -2.08% | -7.20% | +5.12% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.86% | 2.01% | -1.15% |
Volatility
VWLUX vs. VWETX - Volatility Comparison
The current volatility for Vanguard Long-Term Tax-Exempt Fund Admiral Shares (VWLUX) is 1.26%, while Vanguard Long-Term Investment-Grade Fund Admiral Shares (VWETX) has a volatility of 2.50%. This indicates that VWLUX experiences smaller price fluctuations and is considered to be less risky than VWETX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VWLUX | VWETX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.26% | 2.50% | -1.24% |
Volatility (6M)Calculated over the trailing 6-month period | 2.31% | 5.54% | -3.23% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.09% | 7.86% | -4.77% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.60% | 12.10% | -7.50% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.51% | 10.86% | -6.35% |
VWLUX vs. VWETX - Expense Ratio Comparison
VWLUX has a 0.09% expense ratio, which is lower than VWETX's 0.12% 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. VWETX - Dividend Comparison
VWLUX's dividend yield for the trailing twelve months is around 3.77%, less than VWETX's 5.19% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
VWLUX Vanguard Long-Term Tax-Exempt Fund Admiral Shares | 3.77% | 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
VWLUX and VWETX have a correlation of 0.57, 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 VWLUX (1.26%). In terms of maximum drawdown, VWLUX dropped -15.94% vs VWETX's -36.04%.
VWLUX currently has the higher Sharpe Ratio (2.73 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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