Quick Verdict

VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: TiedHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricKTFVYMWinner
Expense Ratio-0.04%
AUM$353M$79.0B
Dividend Yield8.22%2.86%
Holdings244568
YTD Return+3.66%+15.80%
1Y Return+12.82%+26.12%
3Y Return (annualized)+9.52%+18.25%
5Y Return (annualized)-0.45%+12.51%
Volatility (annualized)12.5%14.6%
Max Drawdown-60.4%-58.8%
Fund FamilyDWSVanguard (US)
CategoryTax PreferredEquity
InceptionOct 20, 1988Nov 10, 2006

KTF vs VYM Performance

DWS Municipal Income Trust (KTF) is a ETF from DWS and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year KTF returned +12.82% while VYM returned +26.12%. Year to date, KTF is up 3.66% versus a gain of 15.80% for VYM.

Over three years, KTF compounded at +9.52% per year against +18.25% for VYM; over five years the annualized figures are -0.45% and +12.51% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs -0.11%. 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 12.5% for KTF. 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 -60.4% for KTF 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.

Holdings Overlap

0.0%overlap

KTF and VYM share 0 holdings out of 681 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which performed better, KTF or VYM?

Over the past year KTF returned +12.82% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), KTF annualized -0.11% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, KTF or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 12.5% for KTF. Worst drawdown: KTF -60.4% vs VYM -58.8%.

Should I hold both KTF and VYM?

KTF 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 KTF and VYM?

KTF and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 681 unique securities.

Which pays a higher dividend, KTF or VYM?

KTF yields 8.22% while VYM yields 2.86%, so KTF currently pays the higher dividend yield.

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