LEO vs VYM
BNY Mellon Strategic Municipals 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 | LEO | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.98% | 0.04% | |
| AUM | $500M | $79.0B | |
| Dividend Yield | 4.24% | 2.86% | |
| Holdings | 262 | 568 | |
| YTD Return | +0.37% | +16.10% | |
| 1Y Return | +10.39% | +25.99% | |
| 3Y Return (annualized) | +6.19% | +18.29% | |
| 5Y Return (annualized) | -3.68% | +12.35% | |
| Volatility (annualized) | 12.7% | 14.6% | |
| Max Drawdown | -58.0% | -58.8% | |
| Fund Family | BNY Mellon Investment Management | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Sep 23, 1987 | Nov 10, 2006 |
LEO vs VYM Performance
BNY Mellon Strategic Municipals Inc (LEO) is a ETF from BNY Mellon Investment Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year LEO returned +10.39% while VYM returned +25.99%. Year to date, LEO is up 0.37% versus a gain of 16.10% for VYM.
Over three years, LEO compounded at +6.19% per year against +18.29% for VYM; over five years the annualized figures are -3.68% and +12.35% respectively. Across the full 20-year window we track, VYM has the edge at +7.08% annualized vs -0.63%. 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 12.7% for LEO. 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 -58.0% for LEO 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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LEO charges 0.98% per year while VYM charges 0.04%. On a $10,000 position that is $98 vs $4 annually, a gap of $94 per year that compounds over a long holding period. On income, LEO currently yields 4.24% against 2.86% for VYM.
Holdings Overlap
LEO and VYM share 0 holdings out of 712 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, LEO or VYM?
LEO has an expense ratio of 0.98% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $94 per year of difference.
Which performed better, LEO or VYM?
Over the past year LEO returned +10.39% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), LEO annualized -0.63% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, LEO or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 12.7% for LEO. Worst drawdown: LEO -58.0% vs VYM -58.8%.
Should I hold both LEO and VYM?
LEO and VYM have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LEO and VYM?
LEO and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 712 unique securities.
Which pays a higher dividend, LEO or VYM?
LEO yields 4.24% while VYM yields 2.86%, so LEO currently pays the higher dividend yield.
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