VIG vs VMLUX
Vanguard Dividend Appreciation ETF vs Vanguard Limited Term Tax-Exempt Fund admiral class
Quick Verdict
VIG has a lower expense ratio. VIG delivered stronger 1-year returns. VMLUX offers more diversification with 915 holdings.
Side-by-Side Comparison
| Metric | VIG | VMLUX | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.09% | |
| AUM | $110.2B | $34.1B | |
| Dividend Yield | 1.79% | 2.89% | |
| Holdings | 335 | 7,110 | |
| YTD Return | +12.26% | -0.64% | |
| 1Y Return | +20.77% | -0.36% | |
| 3Y Return (annualized) | +16.59% | +0.77% | |
| 5Y Return (annualized) | +10.76% | -0.58% | |
| Volatility (annualized) | 13.3% | 2.8% | |
| Max Drawdown | -48.2% | -8.5% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Apr 21, 2006 | Feb 12, 2001 |
VIG vs VMLUX Performance
Vanguard Dividend Appreciation ETF (VIG) 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 VIG returned +20.77% while VMLUX returned -0.36%. Year to date, VIG is up 12.26% versus a loss of 0.64% for VMLUX.
Over three years, VIG compounded at +16.59% per year against +0.77% for VMLUX; over five years the annualized figures are +10.76% and -0.58% respectively. Across the full 5-year window we track, VIG has the edge at +8.69% annualized vs -0.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VIG has been the more volatile fund, with annualized monthly volatility of 13.3% 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 -48.2% for VIG 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VIG charges 0.04% per year while VMLUX charges 0.09%. On a $10,000 position that is $4 vs $9 annually, a gap of $5 per year that compounds over a long holding period. On income, VIG currently yields 1.79% against 2.89% for VMLUX.
Holdings Overlap
VIG and VMLUX share 0 holdings out of 1246 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, VIG or VMLUX?
VIG has an expense ratio of 0.04% while VMLUX charges 0.09%. VIG is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, VIG or VMLUX?
Over the past year VIG returned +20.77% vs -0.36% for VMLUX, so VIG leads on 1-year performance. Over the longest common window we track (5 years), VIG annualized +8.69% vs -0.58% for VMLUX. Past performance does not guarantee future results.
Which is riskier, VIG or VMLUX?
VIG has been the more volatile fund at 13.3% annualized versus 2.8% for VMLUX. Worst drawdown: VIG -48.2% vs VMLUX -8.5%.
Should I hold both VIG and VMLUX?
VIG and VMLUX have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VIG and VMLUX?
VIG and VMLUX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1246 unique securities.
Which pays a higher dividend, VIG or VMLUX?
VIG yields 1.79% while VMLUX yields 2.89%, so VMLUX currently pays the higher dividend yield.
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