MEGI vs VYM
NYLI CBRE Global Infrastructure Megatrends Term Fund 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 | MEGI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.87% | 0.04% | |
| AUM | $842M | $79.0B | |
| Dividend Yield | 9.10% | 2.86% | |
| Holdings | 64 | 568 | |
| YTD Return | +14.40% | +16.16% | |
| 1Y Return | +16.98% | +26.05% | |
| 3Y Return (annualized) | +15.55% | +18.43% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 22.9% | 14.6% | |
| Max Drawdown | -39.5% | -58.8% | |
| Fund Family | New York Life Investments | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 27, 2021 | Nov 10, 2006 |
MEGI vs VYM Performance
NYLI CBRE Global Infrastructure Megatrends Term Fund (MEGI) is a ETF from New York Life Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MEGI returned +16.98% while VYM returned +26.05%. Year to date, MEGI is up 14.40% versus a gain of 16.16% for VYM.
Over three years, MEGI compounded at +15.55% per year against +18.43% for VYM. Across the full 5-year window we track, VYM has the edge at +7.09% annualized vs +3.71%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MEGI has been the more volatile fund, with annualized monthly volatility of 22.9% 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 -39.5% for MEGI 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MEGI charges 1.87% per year while VYM charges 0.04%. On a $10,000 position that is $187 vs $4 annually, a gap of $183 per year that compounds over a long holding period. On income, MEGI currently yields 9.10% against 2.86% for VYM.
Holdings Overlap
MEGI and VYM share 16 holdings out of 603 unique holdings combined, representing a 2.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MEGI or VYM?
MEGI has an expense ratio of 1.87% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $183 per year of difference.
Which performed better, MEGI or VYM?
Over the past year MEGI returned +16.98% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), MEGI annualized +3.71% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, MEGI or VYM?
MEGI has been the more volatile fund at 22.9% annualized versus 14.6% for VYM. Worst drawdown: MEGI -39.5% vs VYM -58.8%.
Should I hold both MEGI and VYM?
MEGI and VYM have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MEGI and VYM?
MEGI and VYM share 16 common holdings with a 2.2% weight overlap. Combined, they hold 603 unique securities.
Which pays a higher dividend, MEGI or VYM?
MEGI yields 9.10% while VYM yields 2.86%, so MEGI currently pays the higher dividend yield.
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