VMLUX vs VXF
Vanguard Limited Term Tax-Exempt Fund admiral class vs Vanguard Extended Market ETF
Quick Verdict
VXF has a lower expense ratio. VXF delivered stronger 1-year returns. VMLUX offers more diversification with 7,110 holdings.
Side-by-Side Comparison
| Metric | VMLUX | VXF | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.05% | |
| AUM | $34.5B | $30.5B | |
| Dividend Yield | 2.93% | 1.03% | |
| Holdings | 7,110 | 3,376 | |
| YTD Return | -0.64% | +15.71% | |
| 1Y Return | -0.36% | +23.93% | |
| 3Y Return (annualized) | +0.87% | +19.90% | |
| 5Y Return (annualized) | -0.56% | +7.18% | |
| Volatility (annualized) | 2.8% | 18.7% | |
| Max Drawdown | -8.4% | -59.4% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Feb 12, 2001 | Dec 27, 2001 |
VMLUX vs VXF Performance
Vanguard Limited Term Tax-Exempt Fund admiral class (VMLUX) is a mutual fund from Vanguard (US) and Vanguard Extended Market ETF (VXF) is a ETF from Vanguard (US). Over the past year VMLUX returned -0.36% while VXF returned +23.93%. Year to date, VMLUX is down 0.64% versus a gain of 15.71% for VXF.
Over three years, VMLUX compounded at +0.87% per year against +19.90% for VXF; over five years the annualized figures are -0.56% and +7.18% respectively. Across the full 5-year window we track, VXF has the edge at +9.01% annualized vs -0.56%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXF has been the more volatile fund, with annualized monthly volatility of 18.7% 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 -59.4% for VXF. 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 VXF charges 0.05%. On a $10,000 position that is $9 vs $5 annually, a gap of $4 per year that compounds over a long holding period. On income, VMLUX currently yields 2.93% against 1.03% for VXF.
Holdings Overlap
VMLUX and VXF share 0 holdings out of 4209 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 VXF?
VMLUX has an expense ratio of 0.09% while VXF charges 0.05%. VXF is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, VMLUX or VXF?
Over the past year VMLUX returned -0.36% vs +23.93% for VXF, so VXF leads on 1-year performance. Over the longest common window we track (5 years), VMLUX annualized -0.56% vs +9.01% for VXF. Past performance does not guarantee future results.
Which is riskier, VMLUX or VXF?
VXF has been the more volatile fund at 18.7% annualized versus 2.8% for VMLUX. Worst drawdown: VMLUX -8.4% vs VXF -59.4%.
Should I hold both VMLUX and VXF?
VMLUX and VXF 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 VXF?
VMLUX and VXF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 4209 unique securities.
Which pays a higher dividend, VMLUX or VXF?
VMLUX yields 2.93% while VXF yields 1.03%, so VMLUX currently pays the higher dividend yield.
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