VGHAX vs VMLUX

Quick Verdict

VMLUX has a lower expense ratio. VGHAX delivered stronger 1-year returns. VMLUX offers more diversification with 7,110 holdings.

Lower Fees: VMLUXHigher Returns: VGHAXMore Diversified: VMLUX

Side-by-Side Comparison

MetricVGHAXVMLUXWinner
Expense Ratio0.32%0.09%
AUM$31.8B$34.1B
Dividend Yield1.06%2.89%
Holdings1097,110
YTD Return+2.59%-0.55%
1Y Return+24.45%-0.27%
3Y Return (annualized)-0.54%+0.81%
5Y Return (annualized)-2.67%-0.56%
Volatility (annualized)15.4%2.8%
Max Drawdown-33.6%-8.5%
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityTax Preferred
InceptionNov 12, 2001Feb 12, 2001

VGHAX vs VMLUX Performance

Vanguard Health Care Fund Admiral Shares (VGHAX) is a mutual fund from Vanguard (US) and Vanguard Limited Term Tax-Exempt Fund admiral class (VMLUX) is a mutual fund from Vanguard (US). Over the past year VGHAX returned +24.45% while VMLUX returned -0.27%. Year to date, VGHAX is up 2.59% versus a loss of 0.55% for VMLUX.

Over three years, VGHAX compounded at -0.54% per year against +0.81% for VMLUX; over five years the annualized figures are -2.67% and -0.56% respectively. Across the full 5-year window we track, VMLUX has the edge at -0.56% annualized vs -2.67%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VGHAX has been the more volatile fund, with annualized monthly volatility of 15.4% 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 -33.6% for VGHAX 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VGHAX charges 0.32% per year while VMLUX charges 0.09%. On a $10,000 position that is $32 vs $9 annually, a gap of $23 per year that compounds over a long holding period. On income, VGHAX currently yields 1.06% against 2.89% for VMLUX.

Holdings Overlap

0.0%overlap

VGHAX and VMLUX share 0 holdings out of 1001 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, VGHAX or VMLUX?

VGHAX has an expense ratio of 0.32% while VMLUX charges 0.09%. VMLUX is the cheaper option. On a $10,000 investment, that is $23 per year of difference.

Which performed better, VGHAX or VMLUX?

Over the past year VGHAX returned +24.45% vs -0.27% for VMLUX, so VGHAX leads on 1-year performance. Over the longest common window we track (5 years), VGHAX annualized -2.67% vs -0.56% for VMLUX. Past performance does not guarantee future results.

Which is riskier, VGHAX or VMLUX?

VGHAX has been the more volatile fund at 15.4% annualized versus 2.8% for VMLUX. Worst drawdown: VGHAX -33.6% vs VMLUX -8.5%.

Should I hold both VGHAX and VMLUX?

VGHAX and VMLUX have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VGHAX and VMLUX?

VGHAX and VMLUX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1001 unique securities.

Which pays a higher dividend, VGHAX or VMLUX?

VGHAX yields 1.06% while VMLUX yields 2.89%, so VMLUX currently pays the higher dividend yield.

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