VBR vs VMLUX
Vanguard Small Cap Value ETF vs Vanguard Limited Term Tax-Exempt Fund admiral class
Quick Verdict
VBR has a lower expense ratio. VBR delivered stronger 1-year returns. VMLUX offers more diversification with 915 holdings.
Side-by-Side Comparison
| Metric | VBR | VMLUX | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.09% | |
| AUM | $36.9B | $34.1B | |
| Dividend Yield | 2.23% | 2.89% | |
| Holdings | 853 | 7,110 | |
| YTD Return | +17.42% | -0.64% | |
| 1Y Return | +28.50% | -0.36% | |
| 3Y Return (annualized) | +15.85% | +0.81% | |
| 5Y Return (annualized) | +9.84% | -0.58% | |
| Volatility (annualized) | 19.0% | 2.8% | |
| Max Drawdown | -64.0% | -8.5% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Jan 26, 2004 | Feb 12, 2001 |
VBR vs VMLUX Performance
Vanguard Small Cap Value ETF (VBR) 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 VBR returned +28.50% while VMLUX returned -0.36%. Year to date, VBR is up 17.42% versus a loss of 0.64% for VMLUX.
Over three years, VBR compounded at +15.85% per year against +0.81% for VMLUX; over five years the annualized figures are +9.84% and -0.58% respectively. Across the full 5-year window we track, VBR has the edge at +8.01% annualized vs -0.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBR has been the more volatile fund, with annualized monthly volatility of 19.0% 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 -64.0% for VBR 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VBR charges 0.05% per year while VMLUX charges 0.09%. On a $10,000 position that is $5 vs $9 annually, a gap of $4 per year that compounds over a long holding period. On income, VBR currently yields 2.23% against 2.89% for VMLUX.
Holdings Overlap
VBR and VMLUX share 0 holdings out of 1724 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, VBR or VMLUX?
VBR has an expense ratio of 0.05% while VMLUX charges 0.09%. VBR is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, VBR or VMLUX?
Over the past year VBR returned +28.50% vs -0.36% for VMLUX, so VBR leads on 1-year performance. Over the longest common window we track (5 years), VBR annualized +8.01% vs -0.58% for VMLUX. Past performance does not guarantee future results.
Which is riskier, VBR or VMLUX?
VBR has been the more volatile fund at 19.0% annualized versus 2.8% for VMLUX. Worst drawdown: VBR -64.0% vs VMLUX -8.5%.
Should I hold both VBR and VMLUX?
VBR and VMLUX have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VBR and VMLUX?
VBR and VMLUX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1724 unique securities.
Which pays a higher dividend, VBR or VMLUX?
VBR yields 2.23% while VMLUX yields 2.89%, so VMLUX currently pays the higher dividend yield.
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