VEA vs VMLUX
Vanguard FTSE Developed Markets ETF vs Vanguard Limited Term Tax-Exempt Fund admiral class
Quick Verdict
VEA has a lower expense ratio. VEA delivered stronger 1-year returns. VEA offers more diversification with 3008 holdings.
Side-by-Side Comparison
| Metric | VEA | VMLUX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $230.9B | $34.1B | |
| Dividend Yield | 2.57% | 2.89% | |
| Holdings | 3,918 | 7,110 | |
| YTD Return | +15.52% | -0.64% | |
| 1Y Return | +29.08% | -0.36% | |
| 3Y Return (annualized) | +19.97% | +0.81% | |
| 5Y Return (annualized) | +10.09% | -0.58% | |
| Volatility (annualized) | 17.8% | 2.8% | |
| Max Drawdown | -62.9% | -8.5% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Jul 20, 2007 | Feb 12, 2001 |
VEA vs VMLUX Performance
Vanguard FTSE Developed Markets ETF (VEA) 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 VEA returned +29.08% while VMLUX returned -0.36%. Year to date, VEA is up 15.52% versus a loss of 0.64% for VMLUX.
Over three years, VEA compounded at +19.97% per year against +0.81% for VMLUX; over five years the annualized figures are +10.09% and -0.58% respectively. Across the full 5-year window we track, VEA has the edge at +3.11% annualized vs -0.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEA has been the more volatile fund, with annualized monthly volatility of 17.8% 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 -62.9% for VEA 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VEA 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, VEA currently yields 2.57% against 2.89% for VMLUX.
Holdings Overlap
VEA and VMLUX share 0 holdings out of 3923 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, VEA or VMLUX?
VEA has an expense ratio of 0.03% while VMLUX charges 0.09%. VEA is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, VEA or VMLUX?
Over the past year VEA returned +29.08% vs -0.36% for VMLUX, so VEA leads on 1-year performance. Over the longest common window we track (5 years), VEA annualized +3.11% vs -0.58% for VMLUX. Past performance does not guarantee future results.
Which is riskier, VEA or VMLUX?
VEA has been the more volatile fund at 17.8% annualized versus 2.8% for VMLUX. Worst drawdown: VEA -62.9% vs VMLUX -8.5%.
Should I hold both VEA and VMLUX?
VEA and VMLUX have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VEA and VMLUX?
VEA and VMLUX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3923 unique securities.
Which pays a higher dividend, VEA or VMLUX?
VEA yields 2.57% while VMLUX yields 2.89%, so VMLUX currently pays the higher dividend yield.
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