VMLUX vs VO
Vanguard Limited Term Tax-Exempt Fund admiral class vs Vanguard Mid-Cap ETF
Quick Verdict
VO has a lower expense ratio. VO delivered stronger 1-year returns. VMLUX offers more diversification with 915 holdings.
Side-by-Side Comparison
| Metric | VMLUX | VO | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.03% | |
| AUM | $34.1B | $105.9B | |
| Dividend Yield | 2.89% | 1.53% | |
| Holdings | 7,110 | 293 | |
| YTD Return | -0.64% | +14.37% | |
| 1Y Return | -0.36% | +19.39% | |
| 3Y Return (annualized) | +0.77% | +16.44% | |
| 5Y Return (annualized) | -0.58% | +8.03% | |
| Volatility (annualized) | 2.8% | 16.9% | |
| Max Drawdown | -8.5% | -60.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Feb 12, 2001 | Jan 26, 2004 |
VMLUX vs VO Performance
Vanguard Limited Term Tax-Exempt Fund admiral class (VMLUX) is a mutual fund from Vanguard (US) and Vanguard Mid-Cap ETF (VO) is a ETF from Vanguard (US). Over the past year VMLUX returned -0.36% while VO returned +19.39%. Year to date, VMLUX is down 0.64% versus a gain of 14.37% for VO.
Over three years, VMLUX compounded at +0.77% per year against +16.44% for VO; over five years the annualized figures are -0.58% and +8.03% respectively. Across the full 5-year window we track, VO has the edge at +9.23% annualized vs -0.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VO has been the more volatile fund, with annualized monthly volatility of 16.9% 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 -8.5% for VMLUX and -60.3% for VO. 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VMLUX charges 0.09% per year while VO charges 0.03%. On a $10,000 position that is $9 vs $3 annually, a gap of $6 per year that compounds over a long holding period. On income, VMLUX currently yields 2.89% against 1.53% for VO.
Holdings Overlap
VMLUX and VO share 0 holdings out of 1194 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, VMLUX or VO?
VMLUX has an expense ratio of 0.09% while VO charges 0.03%. VO is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, VMLUX or VO?
Over the past year VMLUX returned -0.36% vs +19.39% for VO, so VO leads on 1-year performance. Over the longest common window we track (5 years), VMLUX annualized -0.58% vs +9.23% for VO. Past performance does not guarantee future results.
Which is riskier, VMLUX or VO?
VO has been the more volatile fund at 16.9% annualized versus 2.8% for VMLUX. Worst drawdown: VMLUX -8.5% vs VO -60.3%.
Should I hold both VMLUX and VO?
VMLUX and VO have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VMLUX and VO?
VMLUX and VO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1194 unique securities.
Which pays a higher dividend, VMLUX or VO?
VMLUX yields 2.89% while VO yields 1.53%, so VMLUX currently pays the higher dividend yield.
Popular Fund Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.