VGIT vs VMLUX
VGIT vs VMLUX
Vanguard Intermediate Term Treasury ETF vs Vanguard Limited Term Tax-Exempt Fund admiral class
Quick Verdict
VGIT has a lower expense ratio. VGIT delivered stronger 1-year returns. VMLUX offers more diversification with 915 holdings.
Side-by-Side Comparison
| Metric | VGIT | VMLUX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $42.1B | $34.1B | |
| Dividend Yield | 3.84% | 2.89% | |
| Holdings | 106 | 7,110 | |
| YTD Return | -0.62% | -0.64% | |
| 1Y Return | +1.32% | -0.36% | |
| 3Y Return (annualized) | +3.60% | +0.81% | |
| 5Y Return (annualized) | -0.12% | -0.58% | |
| Volatility (annualized) | 4.3% | 2.8% | |
| Max Drawdown | -17.2% | -8.5% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Tax Preferred | |
| Inception | Nov 19, 2009 | Feb 12, 2001 |
VGIT vs VMLUX Performance
Vanguard Intermediate Term Treasury ETF (VGIT) 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 VGIT returned +1.32% while VMLUX returned -0.36%. Year to date, VGIT is down 0.62% versus a loss of 0.64% for VMLUX.
Over three years, VGIT compounded at +3.60% per year against +0.81% for VMLUX; over five years the annualized figures are -0.12% and -0.58% respectively. Across the full 5-year window we track, VGIT has the edge at +0.75% annualized vs -0.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VGIT has been the more volatile fund, with annualized monthly volatility of 4.3% 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 -17.2% for VGIT 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VGIT 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, VGIT currently yields 3.84% against 2.89% for VMLUX.
Holdings Overlap
VGIT and VMLUX share 0 holdings out of 999 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, VGIT or VMLUX?
VGIT has an expense ratio of 0.03% while VMLUX charges 0.09%. VGIT is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, VGIT or VMLUX?
Over the past year VGIT returned +1.32% vs -0.36% for VMLUX, so VGIT leads on 1-year performance. Over the longest common window we track (5 years), VGIT annualized +0.75% vs -0.58% for VMLUX. Past performance does not guarantee future results.
Which is riskier, VGIT or VMLUX?
VGIT has been the more volatile fund at 4.3% annualized versus 2.8% for VMLUX. Worst drawdown: VGIT -17.2% vs VMLUX -8.5%.
Should I hold both VGIT and VMLUX?
VGIT and VMLUX have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGIT and VMLUX?
VGIT and VMLUX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 999 unique securities.
Which pays a higher dividend, VGIT or VMLUX?
VGIT yields 3.84% while VMLUX yields 2.89%, so VGIT currently pays the higher dividend yield.
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