VMLUX vs VTBNX
Vanguard Limited Term Tax-Exempt Fund admiral class vs Vanguard Total Bond Market II Index Fund Institutional Shares
Which is better, VMLUX or VTBNX?
Municipal Bond against Long Term High Quality.
VTBNX has a lower expense ratio. The two have moved almost in lockstep, correlation 0.90.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VMLUX | VTBNX |
|---|---|---|
| Expense Ratio | 0.09% | 0.02%Best |
| AUM | $34.5B | $207.3B |
| Dividend Yield | 2.93% | 3.80% |
| Holdings | 7,398 | 14,920 |
| YTD Price Return | -1.64% | -3.85% |
| 1Y Price Return | -1.99% | -4.44% |
| 3Y Price Return (annualized) | +0.53% | +0.07% |
| 5Y Price Return (annualized) | -0.74% | -3.83% |
| Volatility (annualized) | 2.8%Best | 6.3% |
| Max Drawdown | -8.4%Best | -21.5% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Tax Preferred | Fixed Income |
| Style | Municipal Bond | Long Term High Quality |
| Inception | Feb 12, 2001 | Feb 17, 2009 |
Not shown on this pair: $10,000 over 5 years, Top 10 Weight.
A price return is not the return of a fund that pays its income out. The coupon or distribution never appears in the price, so the return rows carry no winner here. VMLUX currently yields 2.93% and VTBNX 3.80%.
Volatility and max drawdown are measured over the window both funds cover: Sep 13, 2021 to Sep 10, 2026 (5 years).
VMLUX vs VTBNX Performance
Vanguard Limited Term Tax-Exempt Fund admiral class (VMLUX) is a mutual fund from Vanguard (US) and Vanguard Total Bond Market II Index Fund Institutional Shares (VTBNX) is a mutual fund from Vanguard (US). Over the past year VMLUX's price moved -1.99% and VTBNX's -4.44%, before the income each one paid out.
Over three years, VMLUX compounded at +0.53% per year against +0.07% for VTBNX; over five years the annualized figures are -0.74% and -3.83% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTBNX has been the more volatile fund, with annualized monthly volatility of 6.3% 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 -8.4% for VMLUX and -21.5% for VTBNX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VMLUX charges 0.09% per year while VTBNX charges 0.02%. On a $10,000 position that is $9 vs $2 annually, a gap of $7 per year that compounds over a long holding period. On income, VMLUX currently yields 2.93% against 3.80% for VTBNX.
Holdings Overlap
We hold position weights for 915 holdings in VMLUX and 12,623 in VTBNX, totalling 27.7% and 61.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 150 days apart, VMLUX as of Jan 31, 2026 and VTBNX as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 915 positions we hold weights for in VMLUX and 12,623 in VTBNX, against full books of 7,398 and 14,920.
You are not choosing between two funds in isolation.
Whichever of VMLUX and VTBNX you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VMLUX or VTBNX?
VMLUX has an expense ratio of 0.09% while VTBNX charges 0.02%. VTBNX is the cheaper option, by $7 a year on a $10,000 investment.
Which is riskier, VMLUX or VTBNX?
VTBNX has been the more volatile fund at 6.3% annualized versus 2.8% for VMLUX. Worst drawdown: VMLUX -8.4% vs VTBNX -21.5%.
Should I hold both VMLUX and VTBNX?
VMLUX and VTBNX have a monthly-return correlation of 0.90, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, VMLUX or VTBNX?
VMLUX yields 2.93% while VTBNX yields 3.80%, so VTBNX currently pays the higher dividend yield.
Is VTBNX better than VMLUX?
VTBNX has a lower expense ratio. The two have moved almost in lockstep, correlation 0.90. Which one suits a particular account depends on what it is for. This is information, not a recommendation.