VMLUX vs VTCIX
Vanguard Limited Term Tax-Exempt Fund admiral class vs Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares
Which is better, VMLUX or VTCIX?
Municipal Bond against Large Cap Blend.
VTCIX has a lower expense ratio.
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 | VTCIX |
|---|---|---|
| Expense Ratio | 0.09% | 0.03%Best |
| AUM | $34.5B | $5.2B |
| Dividend Yield | 2.93% | 0.90% |
| Holdings | 7,398 | 836 |
| YTD Price Return | -1.27% | +11.35% |
| 1Y Price Return | -1.54% | +16.89% |
| 3Y Price Return (annualized) | +0.65% | +19.15% |
| 5Y Price Return (annualized) | -0.67% | +10.87% |
| Volatility (annualized) | 2.8%Best | 15.9% |
| Max Drawdown | -8.4%Best | -26.0% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Tax Preferred | Equity |
| Style | Municipal Bond | Large Cap Blend |
| Inception | Feb 12, 2001 | Feb 24, 1999 |
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 VTCIX 0.90%.
Volatility and max drawdown are measured over the window both funds cover: Sep 13, 2021 to Sep 9, 2026 (5 years).
VMLUX vs VTCIX Performance
Vanguard Limited Term Tax-Exempt Fund admiral class (VMLUX) is a mutual fund from Vanguard (US) and Vanguard Tax-Managed Capital Appreciation Fund Institutional Shares (VTCIX) is a mutual fund from Vanguard (US). Over the past year VMLUX's price moved -1.54% and VTCIX's +16.89%, before the income each one paid out.
Over three years, VMLUX compounded at +0.65% per year against +19.15% for VTCIX; over five years the annualized figures are -0.67% and +10.87% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTCIX has been the more volatile fund, with annualized monthly volatility of 15.9% 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 -26.0% for VTCIX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.64. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VMLUX charges 0.09% per year while VTCIX 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 2.93% against 0.90% for VTCIX.
Holdings Overlap
We hold position weights for 915 holdings in VMLUX and 884 in VTCIX, totalling 27.7% and 99.4% 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 VTCIX 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 884 in VTCIX, against full books of 7,398 and 836.
You are not choosing between two funds in isolation.
Whichever of VMLUX and VTCIX 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 VTCIX?
VMLUX has an expense ratio of 0.09% while VTCIX charges 0.03%. VTCIX is the cheaper option, by $6 a year on a $10,000 investment.
Which is riskier, VMLUX or VTCIX?
VTCIX has been the more volatile fund at 15.9% annualized versus 2.8% for VMLUX. Worst drawdown: VMLUX -8.4% vs VTCIX -26.0%.
Should I hold both VMLUX and VTCIX?
VMLUX and VTCIX have a monthly-return correlation of 0.64, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VMLUX or VTCIX?
VMLUX yields 2.93% while VTCIX yields 0.90%, so VMLUX currently pays the higher dividend yield.
Is VTCIX better than VMLUX?
VTCIX has a lower expense ratio. Which one suits a particular account depends on what it is for. This is information, not a recommendation.