VMLUX vs VOT

Quick Verdict

VOT has a lower expense ratio. VOT delivered stronger 1-year returns. VMLUX offers more diversification with 915 holdings.

Lower Fees: VOTHigher Returns: VOTMore Diversified: VMLUX

Side-by-Side Comparison

MetricVMLUXVOTWinner
Expense Ratio0.09%0.05%
AUM$34.1B$19.9B
Dividend Yield2.89%0.65%
Holdings7,110136
YTD Return-0.64%+9.33%
1Y Return-0.36%+8.58%
3Y Return (annualized)+0.77%+15.30%
5Y Return (annualized)-0.58%+5.56%
Volatility (annualized)2.8%18.6%
Max Drawdown-8.5%-60.3%
Fund FamilyVanguard (US)Vanguard (US)
CategoryTax PreferredEquity
InceptionFeb 12, 2001Aug 17, 2006

VMLUX vs VOT Performance

Vanguard Limited Term Tax-Exempt Fund admiral class (VMLUX) is a mutual fund from Vanguard (US) and Vanguard Mid-Cap Growth ETF (VOT) is a ETF from Vanguard (US). Over the past year VMLUX returned -0.36% while VOT returned +8.58%. Year to date, VMLUX is down 0.64% versus a gain of 9.33% for VOT.

Over three years, VMLUX compounded at +0.77% per year against +15.30% for VOT; over five years the annualized figures are -0.58% and +5.56% respectively. Across the full 5-year window we track, VOT has the edge at +9.62% annualized vs -0.58%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOT has been the more volatile fund, with annualized monthly volatility of 18.6% 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 -60.3% for VOT. 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VMLUX charges 0.09% per year while VOT 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 0.65% for VOT.

Holdings Overlap

0.0%overlap

VMLUX and VOT share 0 holdings out of 1036 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 VOT?

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

Which performed better, VMLUX or VOT?

Over the past year VMLUX returned -0.36% vs +8.58% for VOT, so VOT leads on 1-year performance. Over the longest common window we track (5 years), VMLUX annualized -0.58% vs +9.62% for VOT. Past performance does not guarantee future results.

Which is riskier, VMLUX or VOT?

VOT has been the more volatile fund at 18.6% annualized versus 2.8% for VMLUX. Worst drawdown: VMLUX -8.5% vs VOT -60.3%.

Should I hold both VMLUX and VOT?

VMLUX and VOT have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VMLUX and VOT?

VMLUX and VOT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1036 unique securities.

Which pays a higher dividend, VMLUX or VOT?

VMLUX yields 2.89% while VOT yields 0.65%, so VMLUX currently pays the higher dividend yield.

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