VIITX vs VMLUX
Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class vs Vanguard Limited Term Tax-Exempt Fund admiral class
Quick Verdict
VIITX has a lower expense ratio. VMLUX delivered stronger 1-year returns. VIITX offers more diversification with 1185 holdings.
Side-by-Side Comparison
| Metric | VIITX | VMLUX | Winner |
|---|---|---|---|
| Expense Ratio | 0.02% | 0.09% | |
| AUM | - | $34.1B | |
| Dividend Yield | 4.56% | 2.89% | |
| Holdings | 2,599 | 7,110 | |
| YTD Return | -2.08% | -0.64% | |
| 1Y Return | -1.49% | -0.36% | |
| 3Y Return (annualized) | +0.49% | +0.77% | |
| 5Y Return (annualized) | -2.31% | -0.58% | |
| Volatility (annualized) | 4.2% | 2.8% | |
| Max Drawdown | -15.0% | -8.5% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Tax Preferred | |
| Inception | Dec 1, 1997 | Feb 12, 2001 |
VIITX vs VMLUX Performance
Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class (VIITX) 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 VIITX returned -1.49% while VMLUX returned -0.36%. Year to date, VIITX is down 2.08% versus a loss of 0.64% for VMLUX.
Over three years, VIITX compounded at +0.49% per year against +0.77% for VMLUX; over five years the annualized figures are -2.31% and -0.58% respectively. Across the full 5-year window we track, VMLUX has the edge at -0.58% annualized vs -2.31%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VIITX has been the more volatile fund, with annualized monthly volatility of 4.2% 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 -15.0% for VIITX 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VIITX charges 0.02% per year while VMLUX charges 0.09%. On a $10,000 position that is $2 vs $9 annually, a gap of $7 per year that compounds over a long holding period. On income, VIITX currently yields 4.56% against 2.89% for VMLUX.
Holdings Overlap
VIITX and VMLUX share 0 holdings out of 2100 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, VIITX or VMLUX?
VIITX has an expense ratio of 0.02% while VMLUX charges 0.09%. VIITX is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, VIITX or VMLUX?
Over the past year VIITX returned -1.49% vs -0.36% for VMLUX, so VMLUX leads on 1-year performance. Over the longest common window we track (5 years), VIITX annualized -2.31% vs -0.58% for VMLUX. Past performance does not guarantee future results.
Which is riskier, VIITX or VMLUX?
VIITX has been the more volatile fund at 4.2% annualized versus 2.8% for VMLUX. Worst drawdown: VIITX -15.0% vs VMLUX -8.5%.
Should I hold both VIITX and VMLUX?
VIITX and VMLUX have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VIITX and VMLUX?
VIITX and VMLUX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2100 unique securities.
Which pays a higher dividend, VIITX or VMLUX?
VIITX yields 4.56% while VMLUX yields 2.89%, so VIITX currently pays the higher dividend yield.
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