AFB vs VYM
AllianceBernstein National Municipal Income Fund Inc vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | AFB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.56% | 0.04% | |
| AUM | $341M | $79.0B | |
| Dividend Yield | 4.67% | 2.86% | |
| Holdings | 175 | 568 | |
| YTD Return | +4.75% | +15.80% | |
| 1Y Return | +12.23% | +26.12% | |
| 3Y Return (annualized) | +6.79% | +18.25% | |
| 5Y Return (annualized) | -1.81% | +12.51% | |
| Volatility (annualized) | 12.8% | 14.6% | |
| Max Drawdown | -56.2% | -58.8% | |
| Fund Family | AllianceBernstein L.P. | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Jan 28, 2002 | Nov 10, 2006 |
AFB vs VYM Performance
AllianceBernstein National Municipal Income Fund Inc (AFB) is a ETF from AllianceBernstein L.P. and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year AFB returned +12.23% while VYM returned +26.12%. Year to date, AFB is up 4.75% versus a gain of 15.80% for VYM.
Over three years, AFB compounded at +6.79% per year against +18.25% for VYM; over five years the annualized figures are -1.81% and +12.51% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs -0.30%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 12.8% for AFB. 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 -56.2% for AFB and -58.8% for VYM. 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 0.26. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
AFB charges 1.56% per year while VYM charges 0.04%. On a $10,000 position that is $156 vs $4 annually, a gap of $152 per year that compounds over a long holding period. On income, AFB currently yields 4.67% against 2.86% for VYM.
Holdings Overlap
AFB and VYM share 0 holdings out of 637 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, AFB or VYM?
AFB has an expense ratio of 1.56% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $152 per year of difference.
Which performed better, AFB or VYM?
Over the past year AFB returned +12.23% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), AFB annualized -0.30% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, AFB or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 12.8% for AFB. Worst drawdown: AFB -56.2% vs VYM -58.8%.
Should I hold both AFB and VYM?
AFB and VYM have a monthly-return correlation of 0.26, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AFB and VYM?
AFB and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 637 unique securities.
Which pays a higher dividend, AFB or VYM?
AFB yields 4.67% while VYM yields 2.86%, so AFB currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.