LMUB vs VYM
iShares Long-Term National Muni Bond ETF 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 | LMUB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.04% | |
| AUM | $1.7B | $79.0B | |
| Dividend Yield | 3.75% | 2.86% | |
| Holdings | 652 | 568 | |
| YTD Return | +0.96% | +16.78% | |
| 1Y Return | +7.44% | +24.43% | |
| 3Y Return (annualized) | - | +18.60% | |
| 5Y Return (annualized) | - | +12.30% | |
| Volatility (annualized) | 5.5% | 14.6% | |
| Max Drawdown | -5.5% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 17, 2025 | Nov 10, 2006 |
LMUB vs VYM Performance
iShares Long-Term National Muni Bond ETF (LMUB) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year LMUB returned +7.44% while VYM returned +24.43%. Year to date, LMUB is up 0.96% versus a gain of 16.78% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 5.5% for LMUB. 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 -5.5% for LMUB 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 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LMUB charges 0.09% per year while VYM charges 0.04%. On a $10,000 position that is $9 vs $4 annually, a gap of $5 per year that compounds over a long holding period. On income, LMUB currently yields 3.75% against 2.86% for VYM.
Holdings Overlap
LMUB and VYM share 0 holdings out of 857 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, LMUB or VYM?
LMUB has an expense ratio of 0.09% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, LMUB or VYM?
Over the past year LMUB returned +7.44% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), LMUB annualized +3.40% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, LMUB or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.5% for LMUB. Worst drawdown: LMUB -5.5% vs VYM -58.8%.
Should I hold both LMUB and VYM?
LMUB and VYM have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LMUB and VYM?
LMUB and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 857 unique securities.
Which pays a higher dividend, LMUB or VYM?
LMUB yields 3.75% while VYM yields 2.86%, so LMUB currently pays the higher dividend yield.
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