FTMU vs VYM
Franklin Municipal Income ETF vs Vanguard High Dividend Yield ETF
Which is better, FTMU or VYM?
Municipal Bond against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FTMU | VYM |
|---|---|---|
| Expense Ratio | 0.30% | 0.04%Best |
| AUM | $493M | $95.8B |
| Dividend Yield | 4.01% | 2.23% |
| Holdings | 461 | 610 |
| YTD Return | -0.69% | +15.95%Best |
| 1Y Return | -0.16% | +19.62%Best |
| 3Y Return (annualized) | - | +19.64% |
| 5Y Return (annualized) | - | +11.48% |
| Volatility (annualized) | 6.9%Best | 11.5% |
| Max Drawdown | -7.6% | -6.7%Best |
| $10,000 over 1 years | $9,944 | $11,775Best |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Municipal Bond | Large Cap Value |
| Inception | Dec 31, 1976 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 1 years row, are measured over the window both funds cover: Oct 27, 2025 to Nov 13, 2026 (1 years).
FTMU vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 1 years both funds cover.
FTMU vs VYM Performance
Franklin Municipal Income ETF (FTMU) is an ETF from Franklin Templeton Investments (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year FTMU returned -0.16% while VYM returned +19.62%. Year to date, FTMU is down 0.69% versus a gain of 15.95% for VYM.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 11.5% compared with 6.9% for FTMU. 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 -7.6% for FTMU and -6.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FTMU charges 0.30% per year while VYM charges 0.04%. On a $10,000 position that is $30 vs $4 annually, a gap of $26 per year that compounds over a long holding period. On income, FTMU currently yields 4.01% against 2.23% for VYM.
Holdings Overlap
We hold position weights for 85 holdings in FTMU and 602 in VYM, totalling 38.5% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 64 days apart, FTMU as of Nov 3, 2026 and VYM as of Aug 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 85 positions we hold weights for in FTMU and 602 in VYM, against full books of 461 and 610.
You are not choosing between two funds in isolation.
Whichever of FTMU and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FTMU or VYM?
FTMU has an expense ratio of 0.30% while VYM charges 0.04%. VYM is the cheaper option, by $26 a year on a $10,000 investment.
Which performed better, FTMU or VYM?
Over the past year FTMU returned -0.16% vs +19.62% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), FTMU annualized -0.56% vs +17.75% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FTMU or VYM?
VYM has been the more volatile fund at 11.5% annualized versus 6.9% for FTMU. Worst drawdown: FTMU -7.6% vs VYM -6.7%.
Should I hold both FTMU and VYM?
FTMU and VYM have a monthly-return correlation of 0.81, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FTMU or VYM?
FTMU yields 4.01% while VYM yields 2.23%, so FTMU currently pays the higher dividend yield.
Is VYM better than FTMU?
VYM has a lower expense ratio. VYM led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.