VWLUX vs. VWIAX
VWLUX (Vanguard Long-Term Tax-Exempt Fund Admiral Shares) and VWIAX (Vanguard Wellesley Income Fund Admiral Shares) are both mutual funds - VWLUX is a Municipal Bonds fund managed by Vanguard, while VWIAX is a Diversified Portfolio fund actively managed by Vanguard. Over the past 10 years, VWLUX returned 2.71%/yr vs 5.86%/yr for VWIAX. At a 0.16 correlation, their price movements are largely independent. VWLUX charges 0.09%/yr vs 0.16%/yr for VWIAX.
Performance
VWLUX vs. VWIAX - Performance Comparison
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Returns By Period
In the year-to-date period, VWLUX achieves a 1.97% return, which is significantly lower than VWIAX's 3.43% return. Over the past 10 years, VWLUX has underperformed VWIAX with an annualized return of 2.71%, while VWIAX has yielded a comparatively higher 5.86% annualized return.
VWLUX
- 1D
- 0.09%
- 1M
- 0.69%
- YTD
- 1.97%
- 6M
- 2.39%
- 1Y
- 8.17%
- 3Y*
- 4.74%
- 5Y*
- 1.31%
- 10Y*
- 2.71%
VWIAX
- 1D
- 0.14%
- 1M
- 0.40%
- YTD
- 3.43%
- 6M
- 3.59%
- 1Y
- 11.09%
- 3Y*
- 8.96%
- 5Y*
- 4.10%
- 10Y*
- 5.86%
VWLUX vs. VWIAX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VWLUX Vanguard Long-Term Tax-Exempt Fund Admiral Shares | 1.97% | 4.90% | 2.54% | 7.65% | -10.35% | 1.89% | 6.29% | 8.87% | 0.99% | 6.56% |
VWIAX Vanguard Wellesley Income Fund Admiral Shares | 3.43% | 11.08% | 5.92% | 7.07% | -9.04% | 8.55% | 8.52% | 16.47% | -2.49% | 9.37% |
Correlation
The correlation between VWLUX and VWIAX is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.38 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.40 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.33 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.24 |
Correlation (All Time) Calculated using the full available price history since May 15, 2001 | 0.16 |
Over the past year, VWLUX and VWIAX have become more correlated (0.38) than their long-term average of 0.16, meaning their price movements have been converging.
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Return for Risk
VWLUX vs. VWIAX — Risk / Return Rank
VWLUX
VWIAX
VWLUX vs. VWIAX - 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 Wellesley Income Fund Admiral Shares (VWIAX). 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 | VWIAX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.53 | ||
| Sortino ratioReturn per unit of downside risk | +1.20 | ||
| Omega ratioGain probability vs. loss probability | 1.67 | 1.39 | +0.28 |
| Calmar ratioReturn relative to maximum drawdown | 2.66 | 2.63 | +0.02 |
| Martin ratioReturn relative to average drawdown | 9.52 | 9.92 | -0.39 |
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 | VWIAX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.67 | 2.14 | +0.53 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.28 | 0.59 | -0.31 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.60 | 0.85 | -0.25 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.99 | 0.93 | +0.06 |
Drawdowns
VWLUX vs. VWIAX - Drawdown Comparison
The maximum VWLUX drawdown since its inception was -15.94%, smaller than the maximum VWIAX drawdown of -21.64%. Use the drawdown chart below to compare losses from any high point for VWLUX and VWIAX.
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Drawdown Indicators
| VWLUX | VWIAX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -15.94% | -21.64% | +5.70% |
Max Drawdown (1Y)Largest decline over 1 year | -3.09% | -4.15% | +1.06% |
Max Drawdown (3Y)Largest decline over 3 years | -6.90% | -6.96% | +0.06% |
Max Drawdown (5Y)Largest decline over 5 years | -15.94% | -15.26% | -0.68% |
Max Drawdown (10Y)Largest decline over 10 years | -15.94% | -17.41% | +1.47% |
Current DrawdownCurrent decline from peak | -0.22% | -0.16% | -0.06% |
Average DrawdownAverage peak-to-trough decline | -2.08% | -2.22% | +0.14% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.86% | 1.10% | -0.24% |
Volatility
VWLUX vs. VWIAX - Volatility Comparison
The current volatility for Vanguard Long-Term Tax-Exempt Fund Admiral Shares (VWLUX) is 1.26%, while Vanguard Wellesley Income Fund Admiral Shares (VWIAX) has a volatility of 1.60%. This indicates that VWLUX experiences smaller price fluctuations and is considered to be less risky than VWIAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VWLUX | VWIAX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.26% | 1.60% | -0.34% |
Volatility (6M)Calculated over the trailing 6-month period | 2.31% | 3.87% | -1.56% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.08% | 5.13% | -2.05% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.60% | 6.97% | -2.37% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.51% | 6.92% | -2.41% |
VWLUX vs. VWIAX - Expense Ratio Comparison
VWLUX has a 0.09% expense ratio, which is lower than VWIAX's 0.16% 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. VWIAX - Dividend Comparison
VWLUX's dividend yield for the trailing twelve months is around 3.77%, less than VWIAX's 7.77% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VWIAX Vanguard Wellesley Income Fund Admiral Shares | 7.77% | 7.93% | 6.69% | 4.80% | 7.75% | 6.11% | 4.37% | 4.00% | 7.64% | 3.25% | 4.07% | 5.66% |
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 VWIAX have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VWIAX has higher volatility (1.60%) compared to VWLUX (1.26%). In terms of maximum drawdown, VWLUX dropped -15.94% vs VWIAX's -21.64%.
VWLUX currently has the higher Sharpe Ratio (2.67 vs 2.14), 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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