VMLUX vs VT

Quick Verdict

VT has a lower expense ratio. VT delivered stronger 1-year returns. VT offers more diversification with 8927 holdings.

Lower Fees: VTHigher Returns: VTMore Diversified: VT

Side-by-Side Comparison

MetricVMLUXVTWinner
Expense Ratio0.09%0.06%
AUM$34.1B$77.6B
Dividend Yield2.89%1.61%
Holdings7,11010,133
YTD Return-0.64%+14.19%
1Y Return-0.36%+25.25%
3Y Return (annualized)+0.81%+20.36%
5Y Return (annualized)-0.58%+11.17%
Volatility (annualized)2.8%16.6%
Max Drawdown-8.5%-50.6%
Fund FamilyVanguard (US)Vanguard (US)
CategoryTax PreferredEquity
InceptionFeb 12, 2001Jun 24, 2008

VMLUX vs VT Performance

Vanguard Limited Term Tax-Exempt Fund admiral class (VMLUX) is a mutual fund from Vanguard (US) and Vanguard Total World Stock ETF (VT) is a ETF from Vanguard (US). Over the past year VMLUX returned -0.36% while VT returned +25.25%. Year to date, VMLUX is down 0.64% versus a gain of 14.19% for VT.

Over three years, VMLUX compounded at +0.81% per year against +20.36% for VT; over five years the annualized figures are -0.58% and +11.17% respectively. Across the full 5-year window we track, VT has the edge at +7.37% annualized vs -0.58%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VT has been the more volatile fund, with annualized monthly volatility of 16.6% 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 -50.6% for VT. 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 0.72. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

VMLUX charges 0.09% per year while VT charges 0.06%. On a $10,000 position that is $9 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, VMLUX currently yields 2.89% against 1.61% for VT.

Holdings Overlap

0.0%overlap

VMLUX and VT share 0 holdings out of 9842 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 VT?

VMLUX has an expense ratio of 0.09% while VT charges 0.06%. VT is the cheaper option. On a $10,000 investment, that is $3 per year of difference.

Which performed better, VMLUX or VT?

Over the past year VMLUX returned -0.36% vs +25.25% for VT, so VT leads on 1-year performance. Over the longest common window we track (5 years), VMLUX annualized -0.58% vs +7.37% for VT. Past performance does not guarantee future results.

Which is riskier, VMLUX or VT?

VT has been the more volatile fund at 16.6% annualized versus 2.8% for VMLUX. Worst drawdown: VMLUX -8.5% vs VT -50.6%.

Should I hold both VMLUX and VT?

VMLUX and VT have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VMLUX and VT?

VMLUX and VT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 9842 unique securities.

Which pays a higher dividend, VMLUX or VT?

VMLUX yields 2.89% while VT yields 1.61%, so VMLUX currently pays the higher dividend yield.

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