VMLUX vs VTIP
VMLUX vs VTIP
Vanguard Limited Term Tax-Exempt Fund admiral class vs Vanguard Short-Term Inflation-Protected Securities ETF
Quick Verdict
VTIP has a lower expense ratio. VTIP delivered stronger 1-year returns. VMLUX offers more diversification with 915 holdings.
Side-by-Side Comparison
| Metric | VMLUX | VTIP | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.03% | |
| AUM | $34.1B | $19.3B | |
| Dividend Yield | 2.89% | 3.60% | |
| Holdings | 7,110 | 27 | |
| YTD Return | -0.64% | +1.87% | |
| 1Y Return | -0.36% | +3.01% | |
| 3Y Return (annualized) | +0.81% | +5.37% | |
| 5Y Return (annualized) | -0.58% | +3.39% | |
| Volatility (annualized) | 2.8% | 2.4% | |
| Max Drawdown | -8.5% | -7.1% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Tax Preferred | Fixed Income | |
| Inception | Feb 12, 2001 | Oct 12, 2012 |
VMLUX vs VTIP Performance
Vanguard Limited Term Tax-Exempt Fund admiral class (VMLUX) is a mutual fund from Vanguard (US) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is a ETF from Vanguard (US). Over the past year VMLUX returned -0.36% while VTIP returned +3.01%. Year to date, VMLUX is down 0.64% versus a gain of 1.87% for VTIP.
Over three years, VMLUX compounded at +0.81% per year against +5.37% for VTIP; over five years the annualized figures are -0.58% and +3.39% respectively. Across the full 5-year window we track, VTIP has the edge at +1.58% annualized vs -0.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VMLUX has been the more volatile fund, with annualized monthly volatility of 2.8% compared with 2.4% for VTIP. 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 -7.1% for VTIP. 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VMLUX charges 0.09% per year while VTIP 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 3.60% for VTIP.
Holdings Overlap
VMLUX and VTIP share 0 holdings out of 938 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 VTIP?
VMLUX has an expense ratio of 0.09% while VTIP charges 0.03%. VTIP is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, VMLUX or VTIP?
Over the past year VMLUX returned -0.36% vs +3.01% for VTIP, so VTIP leads on 1-year performance. Over the longest common window we track (5 years), VMLUX annualized -0.58% vs +1.58% for VTIP. Past performance does not guarantee future results.
Which is riskier, VMLUX or VTIP?
VMLUX has been the more volatile fund at 2.8% annualized versus 2.4% for VTIP. Worst drawdown: VMLUX -8.5% vs VTIP -7.1%.
Should I hold both VMLUX and VTIP?
VMLUX and VTIP have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VMLUX and VTIP?
VMLUX and VTIP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 938 unique securities.
Which pays a higher dividend, VMLUX or VTIP?
VMLUX yields 2.89% while VTIP yields 3.60%, so VTIP currently pays the higher dividend yield.
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