COTCX vs VNLA Fund Comparison

A comparison between COTCX and VNLA based on their expense ratio, growth, holdings and how well they match their benchmark performance.

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Minafi's Take on COTCX vs VNLA

Here's an in depth look at the differences between Aquila Tax-Free Fund of Colorado Class C($COTCX) and Janus Henderson Short Duration Income ETF($VNLA).

To start off, here's a look at the basics of each fund. Keep an eye on the FI Score. That's a custom score from 0 to 100 that we generate based on how good this fund is for the casual investor. Most investors only need a handful of total funds in their portfolio. The higher the score, the more likely this is one of those few. Score alone isn't enough! Keep reading on to see how different (or perhaps similar) these two funds are.

  • cotcx
  • Mutual Fund
  • Bond
  • Municipal Bond

Aquila Tax-Free Fund of Colorado Class C

Expenses: 1.65% (Better than 0% of similar funds)

This is a bad choice for a Municipal Bond Bond fund. See why »

  • vnla
  • ETF
  • Alternative
  • Short

Janus Henderson Short Duration Income ETF

Expenses: 0.26% (Better than 1% of similar funds)

This is an OK choice for a Short Alternative fund. See why »

$COTCX is classified as a Mutual Fund while $VNLA is classified as an ETF. Even though one of these is a mutual fund and the other is an ETF, that doesn't matter too much for their holdings. Both ETFs and mutual funds are just containers to hold lots of investments inside of them.

The biggest differences between these two is where they may be offered. ETFs are more widely availble from a larger number of investment apps and websites. Mutual funds, on the other hand, are generally offered by the platform they're issued by (Fidelity funds on Fidelity, Vanguard funds on Vanguard). Usually 401(k)'s will offer both ETFs and Mutual Funds. If you're investing outside of a 401(k), I'd recommend you verify the fees associated with ETF and mutual fund transactions. Some platforms charge an additional fee to purchase a mutual fund.

To learn more about the difference between these two, you can read about the difference between ETFs and Mutual Funds.

When evaluating a fund, the first things I look at are:

  • What it invests in
  • How much it charges in fees
  • How large the fund is

Let's look into these criteria one by one and see if either of these funds stands out.

Fund Holdings Comparison

Minafi's FI Score algorithm takes into account the category and market. The more niche a fund is, the lower the score. This doesn't mean it's a worse fund, but it does mean you should stop and make sure this a fund you need to diversify your portfolio.

COTCXVNLA
Market Score 3.3 /10 6.1 /10
Category Score 8.0 /10 0.0 /10
Total11.36.1

A score of 10 means this is a solid market and category that almost every investor will want to have investments in. The lower the score, the more specific the investment. These scores are based on when most investors would add these funds to their portfolio. A score of 10 means that this fund (or one like it) belongs in a three-fund portfolio. The lower the score, the farther down in your portfolio a fund would go.

Winner: $COTCX

Fee Comparison

Fees are one of the biggest killers of portfolio growth. The difference between a 2% fee and a 0.04% fee over 30 years can result in your portfolio having half the total value!

If you're just getting started investing and learning how fees impact your portfolio, I'd encourage you to read through my free investment course (specifically '2.2 - All About Fees') where I go over all the different types of fees you can be charged and how to lower them.

For these two funds, COTCX has an expense ratio of 1.65% while VNLA has an expense ratio of 0.26%.

Winner: $VNLA

Fund Size Comparison

One place these two funds differ is in their total assets under management. This is a good indication of how many other investors trust this fund. A large fund by itself doesn't mean it's a good fund, but it is one thing to consider when figuring out how to choose the right fund.

In the case of these two funds, COTCX is a small fund with 275 Million in assets under management. VNLA, on the other hand, is a medium fund with 1.56 Billion in assets under management.

Winner: $VNLA, Janus Henderson Short Duration Income ETF

Which Should You Choose? COTCX or VNLA?

Comparing these two funds isn't an apples to apples comparison. COTCX is a BondMunicipal Bond fund, while VNLA is a AlternativeShort fund.

If you're aiming to build a diversified, low-fee, tax-optimized portfolio you likely won't be choosing between these two funds since they're different enough.

Running both of these funds through Minafi's FI Score algorithm, gives COTCX a score of 23 and VNLA a score of 60.

Winner: Neither, I'd research more funds if you're looking to invest for retirement.

$COTCX

Aquila Tax-Free Fund of Colorado Class C

23

Read More
Ratings
Rating TypeRating
Expense Ratio Score0/10
Expense Rating0/10
Market Score3/10
Category Score8/10
Overview
OverviewDetails
Fund TypeMutual Fund
Inception DateMay-21-1987
ExchangeNMFQS
Expense Ratio1.650%
Net Assets275 Million
Yield1.01%
Holdings
DescriptionInfo
MarketBond
CategoryMunicipal Bond
Sectors
  • Advance Refunded 11.28%
  • Cash & Equivalents 2.37%
  • Education 19.66%
  • Health 0.49%
  • Housing 0.00%
  • Industrial 2.48%
  • Miscellaneous Revenue 7.82%
  • Municipal 97.63%
  • Other 0.00%
  • State and Local General Obligation 40.26%
  • Tobacco 0.00%
  • Transportation 4.57%
  • Utilities 2.94%
  • Water & Sewer 8.13%

$VNLA

Janus Henderson Short Duration Income ETF

60

Read More
Ratings
Rating TypeRating
Expense Ratio Score8/10
Expense Rating7/10
Market Score6/10
Category Score0/10
Overview
OverviewDetails
Fund TypeETF
Inception DateNov-16-2016
ExchangeNYSE ARCA
Expense Ratio0.260%
Net Assets1.56 Billion
Yield2.75%
Holdings
DescriptionInfo
MarketAlternative
CategoryShort
Sectors
  • Basic Materials 0.00%
  • Communication Services 0.00%
  • Consumer Cyclicals 0.00%
  • Consumer Defensive 0.00%
  • Energy 0.00%
  • Financial Services 0.00%
  • Healthcare 0.00%
  • Industrials 0.00%
  • Real Estate 0.00%
  • Technology 0.00%
  • Utilities 0.00%

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