VMLUX vs XLE
Vanguard Limited Term Tax-Exempt Fund admiral class vs State Street Energy Select Sector SPDR ETF
Quick Verdict
XLE has a lower expense ratio. XLE delivered stronger 1-year returns. VMLUX offers more diversification with 915 holdings.
Side-by-Side Comparison
| Metric | VMLUX | XLE | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.08% | |
| AUM | $34.1B | $38.1B | |
| Dividend Yield | 2.89% | 2.85% | |
| Holdings | 7,110 | 25 | |
| YTD Return | -0.64% | +35.54% | |
| 1Y Return | -0.36% | +48.67% | |
| 3Y Return (annualized) | +0.78% | +14.52% | |
| 5Y Return (annualized) | -0.58% | +23.97% | |
| Volatility (annualized) | 2.8% | 25.1% | |
| Max Drawdown | -8.5% | -76.7% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Tax Preferred | Equity | |
| Inception | Feb 12, 2001 | Dec 16, 1998 |
VMLUX vs XLE Performance
Vanguard Limited Term Tax-Exempt Fund admiral class (VMLUX) is a mutual fund from Vanguard (US) and State Street Energy Select Sector SPDR ETF (XLE) is a ETF from SPDR State Street Global Advisors. Over the past year VMLUX returned -0.36% while XLE returned +48.67%. Year to date, VMLUX is down 0.64% versus a gain of 35.54% for XLE.
Over three years, VMLUX compounded at +0.78% per year against +14.52% for XLE; over five years the annualized figures are -0.58% and +23.97% respectively. Across the full 5-year window we track, XLE has the edge at +6.96% annualized vs -0.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLE has been the more volatile fund, with annualized monthly volatility of 25.1% 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 -76.7% for XLE. 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 0.04. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VMLUX charges 0.09% per year while XLE charges 0.08%. On a $10,000 position that is $9 vs $8 annually, a gap of $1 per year that compounds over a long holding period. On income, VMLUX currently yields 2.89% against 2.85% for XLE.
Holdings Overlap
VMLUX and XLE share 0 holdings out of 937 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 XLE?
VMLUX has an expense ratio of 0.09% while XLE charges 0.08%. XLE is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VMLUX or XLE?
Over the past year VMLUX returned -0.36% vs +48.67% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (5 years), VMLUX annualized -0.58% vs +6.96% for XLE. Past performance does not guarantee future results.
Which is riskier, VMLUX or XLE?
XLE has been the more volatile fund at 25.1% annualized versus 2.8% for VMLUX. Worst drawdown: VMLUX -8.5% vs XLE -76.7%.
Should I hold both VMLUX and XLE?
VMLUX and XLE have a monthly-return correlation of 0.04, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VMLUX and XLE?
VMLUX and XLE share 0 common holdings with a 0.0% weight overlap. Combined, they hold 937 unique securities.
Which pays a higher dividend, VMLUX or XLE?
VMLUX yields 2.89% while XLE yields 2.85%, so VMLUX currently pays the higher dividend yield.
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