VMLUX vs VOE

Quick Verdict

VOE has a lower expense ratio. VOE delivered stronger 1-year returns. VMLUX offers more diversification with 7,110 holdings.

Lower Fees: VOEHigher Returns: VOEMore Diversified: VMLUX

Side-by-Side Comparison

MetricVMLUXVOEWinner
Expense Ratio0.09%0.05%
AUM$34.1B$22.9B
Dividend Yield2.89%2.31%
Holdings7,110177
YTD Return-0.55%+18.67%
1Y Return-0.27%+25.06%
3Y Return (annualized)+0.81%+17.05%
5Y Return (annualized)-0.56%+10.16%
Volatility (annualized)2.8%17.6%
Max Drawdown-8.5%-63.4%
Fund FamilyVanguard (US)Vanguard (US)
CategoryTax PreferredEquity
InceptionFeb 12, 2001Aug 17, 2006

VMLUX vs VOE Performance

Vanguard Limited Term Tax-Exempt Fund admiral class (VMLUX) is a mutual fund from Vanguard (US) and Vanguard Mid-Cap Value ETF (VOE) is a ETF from Vanguard (US). Over the past year VMLUX returned -0.27% while VOE returned +25.06%. Year to date, VMLUX is down 0.55% versus a gain of 18.67% for VOE.

Over three years, VMLUX compounded at +0.81% per year against +17.05% for VOE; over five years the annualized figures are -0.56% and +10.16% respectively. Across the full 5-year window we track, VOE has the edge at +8.02% annualized vs -0.56%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOE has been the more volatile fund, with annualized monthly volatility of 17.6% 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 -63.4% for VOE. 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VMLUX charges 0.09% per year while VOE charges 0.05%. On a $10,000 position that is $9 vs $5 annually, a gap of $4 per year that compounds over a long holding period. On income, VMLUX currently yields 2.89% against 2.31% for VOE.

Holdings Overlap

0.0%overlap

VMLUX and VOE share 0 holdings out of 1084 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 VOE?

VMLUX has an expense ratio of 0.09% while VOE charges 0.05%. VOE is the cheaper option. On a $10,000 investment, that is $4 per year of difference.

Which performed better, VMLUX or VOE?

Over the past year VMLUX returned -0.27% vs +25.06% for VOE, so VOE leads on 1-year performance. Over the longest common window we track (5 years), VMLUX annualized -0.56% vs +8.02% for VOE. Past performance does not guarantee future results.

Which is riskier, VMLUX or VOE?

VOE has been the more volatile fund at 17.6% annualized versus 2.8% for VMLUX. Worst drawdown: VMLUX -8.5% vs VOE -63.4%.

Should I hold both VMLUX and VOE?

VMLUX and VOE have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VMLUX and VOE?

VMLUX and VOE share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1084 unique securities.

Which pays a higher dividend, VMLUX or VOE?

VMLUX yields 2.89% while VOE yields 2.31%, so VMLUX currently pays the higher dividend yield.

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