VMLUX vs VOO
Vanguard Limited Term Tax-Exempt Fund admiral class vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VMLUX offers more diversification with 915 holdings.
Side-by-Side Comparison
| Metric | VMLUX | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.03% | |
| AUM | $34.1B | $979.0B | |
| Dividend Yield | 2.89% | 1.09% | |
| Holdings | 7,110 | 509 | |
| YTD Return | -0.64% | +13.44% | |
| 1Y Return | -0.36% | +22.62% | |
| 3Y Return (annualized) | +0.77% | +21.47% | |
| 5Y Return (annualized) | -0.58% | +13.27% | |
| Volatility (annualized) | 2.8% | 14.1% | |
| Max Drawdown | -8.5% | -34.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Feb 12, 2001 | Sep 7, 2010 |
VMLUX vs VOO Performance
Vanguard Limited Term Tax-Exempt Fund admiral class (VMLUX) is a mutual fund from Vanguard (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year VMLUX returned -0.36% while VOO returned +22.62%. Year to date, VMLUX is down 0.64% versus a gain of 13.44% for VOO.
Over three years, VMLUX compounded at +0.77% per year against +21.47% for VOO; over five years the annualized figures are -0.58% and +13.27% respectively. Across the full 5-year window we track, VOO has the edge at +13.55% annualized vs -0.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% 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 -34.3% for VOO. 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VMLUX charges 0.09% per year while VOO 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 1.09% for VOO.
Holdings Overlap
VMLUX and VOO share 0 holdings out of 1420 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 VOO?
VMLUX has an expense ratio of 0.09% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, VMLUX or VOO?
Over the past year VMLUX returned -0.36% vs +22.62% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (5 years), VMLUX annualized -0.58% vs +13.55% for VOO. Past performance does not guarantee future results.
Which is riskier, VMLUX or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 2.8% for VMLUX. Worst drawdown: VMLUX -8.5% vs VOO -34.3%.
Should I hold both VMLUX and VOO?
VMLUX and VOO have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VMLUX and VOO?
VMLUX and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1420 unique securities.
Which pays a higher dividend, VMLUX or VOO?
VMLUX yields 2.89% while VOO yields 1.09%, so VMLUX currently pays the higher dividend yield.
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