VMLUX vs VTI
Vanguard Limited Term Tax-Exempt Fund admiral class vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | VMLUX | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.03% | |
| AUM | $34.1B | $663.5B | |
| Dividend Yield | 2.89% | 1.07% | |
| Holdings | 7,110 | 3,543 | |
| YTD Return | -0.64% | +14.22% | |
| 1Y Return | -0.36% | +22.19% | |
| 3Y Return (annualized) | +0.78% | +21.27% | |
| 5Y Return (annualized) | -0.58% | +12.23% | |
| Volatility (annualized) | 2.8% | 15.3% | |
| Max Drawdown | -8.5% | -56.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Feb 12, 2001 | May 24, 2001 |
VMLUX vs VTI Performance
Vanguard Limited Term Tax-Exempt Fund admiral class (VMLUX) is a mutual fund from Vanguard (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year VMLUX returned -0.36% while VTI returned +22.19%. Year to date, VMLUX is down 0.64% versus a gain of 14.22% for VTI.
Over three years, VMLUX compounded at +0.78% per year against +21.27% for VTI; over five years the annualized figures are -0.58% and +12.23% respectively. Across the full 5-year window we track, VTI has the edge at +8.14% annualized vs -0.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -8.5% for VMLUX and -56.6% for VTI. 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 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 2.89% against 1.07% for VTI.
Holdings Overlap
VMLUX and VTI share 0 holdings out of 3698 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 VTI?
VMLUX has an expense ratio of 0.09% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, VMLUX or VTI?
Over the past year VMLUX returned -0.36% vs +22.19% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (5 years), VMLUX annualized -0.58% vs +8.14% for VTI. Past performance does not guarantee future results.
Which is riskier, VMLUX or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 2.8% for VMLUX. Worst drawdown: VMLUX -8.5% vs VTI -56.6%.
Should I hold both VMLUX and VTI?
VMLUX and VTI 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 VTI?
VMLUX and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3698 unique securities.
Which pays a higher dividend, VMLUX or VTI?
VMLUX yields 2.89% while VTI yields 1.07%, so VMLUX currently pays the higher dividend yield.
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