Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricEVNVYMWinner
Expense Ratio2.46%0.04%
AUM$443M$79.0B
Dividend Yield5.64%2.86%
Holdings237568
YTD Return+3.25%+15.80%
1Y Return+6.59%+26.12%
3Y Return (annualized)+8.81%+18.25%
5Y Return (annualized)-0.54%+12.51%
Volatility (annualized)15.7%14.6%
Max Drawdown-62.5%-58.8%
Fund FamilyEaton VanceVanguard (US)
CategoryTax PreferredEquity
InceptionJan 29, 1999Nov 10, 2006

EVN vs VYM Performance

Eaton Vance Municipal Income Trust (EVN) is a ETF from Eaton Vance and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year EVN returned +6.59% while VYM returned +26.12%. Year to date, EVN is up 3.25% versus a gain of 15.80% for VYM.

Over three years, EVN compounded at +8.81% per year against +18.25% for VYM; over five years the annualized figures are -0.54% and +12.51% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs -0.21%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

EVN has been the more volatile fund, with annualized monthly volatility of 15.7% compared with 14.6% for VYM. 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 -62.5% for EVN 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 0.22. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

EVN charges 2.46% per year while VYM charges 0.04%. On a $10,000 position that is $246 vs $4 annually, a gap of $242 per year that compounds over a long holding period. On income, EVN currently yields 5.64% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

EVN and VYM share 0 holdings out of 657 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, EVN or VYM?

EVN has an expense ratio of 2.46% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $242 per year of difference.

Which performed better, EVN or VYM?

Over the past year EVN returned +6.59% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), EVN annualized -0.21% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, EVN or VYM?

EVN has been the more volatile fund at 15.7% annualized versus 14.6% for VYM. Worst drawdown: EVN -62.5% vs VYM -58.8%.

Should I hold both EVN and VYM?

EVN and VYM have a monthly-return correlation of 0.22, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between EVN and VYM?

EVN and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 657 unique securities.

Which pays a higher dividend, EVN or VYM?

EVN yields 5.64% while VYM yields 2.86%, so EVN currently pays the higher dividend yield.

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