VMLUX vs XLV
Vanguard Limited Term Tax-Exempt Fund admiral class vs State Street Health Care Select Sector SPDR ETF
Quick Verdict
XLV has a lower expense ratio. XLV delivered stronger 1-year returns. VMLUX offers more diversification with 915 holdings.
Side-by-Side Comparison
| Metric | VMLUX | XLV | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.08% | |
| AUM | $34.1B | $42.1B | |
| Dividend Yield | 2.89% | 1.60% | |
| Holdings | 7,110 | 62 | |
| YTD Return | -0.55% | +9.20% | |
| 1Y Return | -0.27% | +28.53% | |
| 3Y Return (annualized) | +0.81% | +9.18% | |
| 5Y Return (annualized) | -0.56% | +6.43% | |
| Volatility (annualized) | 2.8% | 14.2% | |
| Max Drawdown | -8.5% | -40.6% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Tax Preferred | Equity | |
| Inception | Feb 12, 2001 | Dec 16, 1998 |
VMLUX vs XLV Performance
Vanguard Limited Term Tax-Exempt Fund admiral class (VMLUX) is a mutual fund from Vanguard (US) and State Street Health Care Select Sector SPDR ETF (XLV) is a ETF from SPDR State Street Global Advisors. Over the past year VMLUX returned -0.27% while XLV returned +28.53%. Year to date, VMLUX is down 0.55% versus a gain of 9.20% for XLV.
Over three years, VMLUX compounded at +0.81% per year against +9.18% for XLV; over five years the annualized figures are -0.56% and +6.43% respectively. Across the full 5-year window we track, XLV has the edge at +7.48% annualized vs -0.56%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLV has been the more volatile fund, with annualized monthly volatility of 14.2% 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 -40.6% for XLV. 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VMLUX charges 0.09% per year while XLV 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 1.60% for XLV.
Holdings Overlap
VMLUX and XLV share 0 holdings out of 975 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 XLV?
VMLUX has an expense ratio of 0.09% while XLV charges 0.08%. XLV is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VMLUX or XLV?
Over the past year VMLUX returned -0.27% vs +28.53% for XLV, so XLV leads on 1-year performance. Over the longest common window we track (5 years), VMLUX annualized -0.56% vs +7.48% for XLV. Past performance does not guarantee future results.
Which is riskier, VMLUX or XLV?
XLV has been the more volatile fund at 14.2% annualized versus 2.8% for VMLUX. Worst drawdown: VMLUX -8.5% vs XLV -40.6%.
Should I hold both VMLUX and XLV?
VMLUX and XLV have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VMLUX and XLV?
VMLUX and XLV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 975 unique securities.
Which pays a higher dividend, VMLUX or XLV?
VMLUX yields 2.89% while XLV yields 1.60%, so VMLUX currently pays the higher dividend yield.
Popular Fund Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.