VIPIX vs VMLUX
Vanguard Inflation Protected Securities Fund Insti Shs vs Vanguard Limited Term Tax-Exempt Fund admiral class
Quick Verdict
VIPIX has a lower expense ratio. VMLUX delivered stronger 1-year returns. VMLUX offers more diversification with 7,110 holdings.
Side-by-Side Comparison
| Metric | VIPIX | VMLUX | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.09% | |
| AUM | $12.5B | $34.1B | |
| Dividend Yield | 3.54% | 2.89% | |
| Holdings | 63 | 7,110 | |
| YTD Return | -1.07% | -0.55% | |
| 1Y Return | -3.04% | -0.27% | |
| 3Y Return (annualized) | -0.43% | +0.81% | |
| 5Y Return (annualized) | -4.84% | -0.56% | |
| Volatility (annualized) | 6.7% | 2.8% | |
| Max Drawdown | -24.5% | -8.5% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Tax Preferred | |
| Inception | Dec 12, 2003 | Feb 12, 2001 |
VIPIX vs VMLUX Performance
Vanguard Inflation Protected Securities Fund Insti Shs (VIPIX) 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 VIPIX returned -3.04% while VMLUX returned -0.27%. Year to date, VIPIX is down 1.07% versus a loss of 0.55% for VMLUX.
Over three years, VIPIX compounded at -0.43% per year against +0.81% for VMLUX; over five years the annualized figures are -4.84% and -0.56% respectively. Across the full 5-year window we track, VMLUX has the edge at -0.56% annualized vs -4.84%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VIPIX has been the more volatile fund, with annualized monthly volatility of 6.7% 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 -24.5% for VIPIX 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VIPIX charges 0.07% per year while VMLUX charges 0.09%. On a $10,000 position that is $7 vs $9 annually, a gap of $2 per year that compounds over a long holding period. On income, VIPIX currently yields 3.54% against 2.89% for VMLUX.
Holdings Overlap
VIPIX and VMLUX share 0 holdings out of 970 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, VIPIX or VMLUX?
VIPIX has an expense ratio of 0.07% while VMLUX charges 0.09%. VIPIX is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VIPIX or VMLUX?
Over the past year VIPIX returned -3.04% vs -0.27% for VMLUX, so VMLUX leads on 1-year performance. Over the longest common window we track (5 years), VIPIX annualized -4.84% vs -0.56% for VMLUX. Past performance does not guarantee future results.
Which is riskier, VIPIX or VMLUX?
VIPIX has been the more volatile fund at 6.7% annualized versus 2.8% for VMLUX. Worst drawdown: VIPIX -24.5% vs VMLUX -8.5%.
Should I hold both VIPIX and VMLUX?
VIPIX and VMLUX have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VIPIX and VMLUX?
VIPIX and VMLUX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 970 unique securities.
Which pays a higher dividend, VIPIX or VMLUX?
VIPIX yields 3.54% while VMLUX yields 2.89%, so VIPIX currently pays the higher dividend yield.
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