VMLUX vs VTI
Vanguard Limited Term Tax-Exempt Fund admiral class vs Vanguard Morningstar Total Stock Market ETF
Which is better, VMLUX or VTI?
Municipal Bond against Large Cap Blend.
VTI 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 | VTI |
|---|---|---|
| Expense Ratio | 0.09% | 0.03%Best |
| AUM | $34.5B | $666.9B |
| Dividend Yield | 2.93% | 1.03% |
| Holdings | 7,398 | 3,543 |
| YTD Price Return | -1.91% | +13.37% |
| 1Y Price Return | -2.35% | +15.59% |
| 3Y Price Return (annualized) | +0.59% | +21.19% |
| 5Y Price Return (annualized) | -0.78% | +10.90% |
| Volatility (annualized) | 2.9%Best | 16.0% |
| Max Drawdown | -8.3%Best | -26.2% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Tax Preferred | Equity |
| Style | Municipal Bond | Large Cap Blend |
| Inception | Feb 12, 2001 | May 24, 2001 |
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 VTI 1.03%.
Volatility and max drawdown are measured over the window both funds cover: Sep 23, 2021 to Sep 21, 2026 (5 years).
VMLUX vs VTI Performance
Vanguard Limited Term Tax-Exempt Fund admiral class (VMLUX) is a mutual fund from Vanguard (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year VMLUX's price moved -2.35% and VTI's +15.59%, before the income each one paid out.
Over three years, VMLUX compounded at +0.59% per year against +21.19% for VTI; over five years the annualized figures are -0.78% and +10.90% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 16.0% compared with 2.9% 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 -8.3% for VMLUX and -26.2% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.63. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VMLUX charges 0.09% per year while VTI 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 1.03% for VTI.
Structure and taxes
VMLUX is a mutual fund and VTI is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
We hold position weights for 872 holdings in VMLUX and 3,463 in VTI, totalling 24.4% and 98.1% of the two funds. That is not enough of VMLUX to divide by, so no overlap percentage is shown here. Within what we can see, 1 positions appear in both.
1 positions in common, counted across the 872 positions we hold weights for in VMLUX and 3,463 in VTI, against full books of 7,398 and 3,543.
Top Shared Holdings
| Stock | Weight in VMLUX | Weight in VTI | Difference |
|---|---|---|---|
| CHMGChemung Financial Corp | 0.00% | 0.00% | 0.00% |
You are not choosing between two funds in isolation.
Whichever of VMLUX and VTI 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 VTI?
VMLUX has an expense ratio of 0.09% while VTI charges 0.03%. VTI is the cheaper option, by $6 a year on a $10,000 investment.
Which is riskier, VMLUX or VTI?
VTI has been the more volatile fund at 16.0% annualized versus 2.9% for VMLUX. Worst drawdown: VMLUX -8.3% vs VTI -26.2%.
Should I hold both VMLUX and VTI?
VMLUX and VTI have a monthly-return correlation of 0.63, 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 VTI?
VMLUX yields 2.93% while VTI yields 1.03%, so VMLUX currently pays the higher dividend yield.
Is it better to hold VMLUX or VTI in a taxable account?
VTI is an ETF and VMLUX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VTI better than VMLUX?
VTI has a lower expense ratio. Which one suits a particular account depends on what it is for. This is information, not a recommendation.