VB vs VMLUX
VB vs VMLUX
Vanguard Small Cap ETF vs Vanguard Limited Term Tax-Exempt Fund admiral class
Quick Verdict
VB has a lower expense ratio. VB delivered stronger 1-year returns. VB offers more diversification with 1112 holdings.
Side-by-Side Comparison
| Metric | VB | VMLUX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $81.5B | $34.1B | |
| Dividend Yield | 1.48% | 2.89% | |
| Holdings | 1,324 | 7,110 | |
| YTD Return | +17.82% | -0.64% | |
| 1Y Return | +29.09% | -0.36% | |
| 3Y Return (annualized) | +16.24% | +0.81% | |
| 5Y Return (annualized) | +8.18% | -0.58% | |
| Volatility (annualized) | 18.9% | 2.8% | |
| Max Drawdown | -61.0% | -8.5% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Jan 26, 2004 | Feb 12, 2001 |
VB vs VMLUX Performance
Vanguard Small Cap ETF (VB) is a ETF from Vanguard (US) and Vanguard Limited Term Tax-Exempt Fund admiral class (VMLUX) is a mutual fund from Vanguard (US). Over the past year VB returned +29.09% while VMLUX returned -0.36%. Year to date, VB is up 17.82% versus a loss of 0.64% for VMLUX.
Over three years, VB compounded at +16.24% per year against +0.81% for VMLUX; over five years the annualized figures are +8.18% and -0.58% respectively. Across the full 5-year window we track, VB has the edge at +8.86% annualized vs -0.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VB has been the more volatile fund, with annualized monthly volatility of 18.9% compared with 2.8% for VMLUX. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -61.0% for VB and -8.5% for VMLUX. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VB charges 0.03% per year while VMLUX charges 0.09%. On a $10,000 position that is $3 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, VB currently yields 1.48% against 2.89% for VMLUX.
Holdings Overlap
VB and VMLUX share 0 holdings out of 2027 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VB or VMLUX?
VB has an expense ratio of 0.03% while VMLUX charges 0.09%. VB is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, VB or VMLUX?
Over the past year VB returned +29.09% vs -0.36% for VMLUX, so VB leads on 1-year performance. Over the longest common window we track (5 years), VB annualized +8.86% vs -0.58% for VMLUX. Past performance does not guarantee future results.
Which is riskier, VB or VMLUX?
VB has been the more volatile fund at 18.9% annualized versus 2.8% for VMLUX. Worst drawdown: VB -61.0% vs VMLUX -8.5%.
Should I hold both VB and VMLUX?
VB and VMLUX have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VB and VMLUX?
VB and VMLUX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2027 unique securities.
Which pays a higher dividend, VB or VMLUX?
VB yields 1.48% while VMLUX yields 2.89%, so VMLUX currently pays the higher dividend yield.
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