MMD vs VOO

Quick Verdict

VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.

Lower Fees: VOOHigher Returns: VOOMore Diversified: VOO

Side-by-Side Comparison

MetricMMDVOOWinner
Expense Ratio2.33%0.03%
AUM$478M$979.0B
Dividend Yield4.59%1.09%
Holdings90509
YTD Return+3.43%+13.44%
1Y Return+7.09%+22.62%
3Y Return (annualized)+1.15%+21.47%
5Y Return (annualized)-3.54%+13.27%
Volatility (annualized)11.2%14.1%
Max Drawdown-30.1%-34.3%
Fund FamilyNew York Life InvestmentsVanguard (US)
CategoryTax PreferredEquity
InceptionJun 27, 2012Sep 7, 2010

MMD vs VOO Performance

NYLI MacKay DefinedTerm Muni Opportunities Fund (MMD) is a ETF from New York Life Investments and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year MMD returned +7.09% while VOO returned +22.62%. Year to date, MMD is up 3.43% versus a gain of 13.44% for VOO.

Over three years, MMD compounded at +1.15% per year against +21.47% for VOO; over five years the annualized figures are -3.54% and +13.27% respectively. Across the full 14-year window we track, VOO has the edge at +13.55% annualized vs -0.11%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 11.2% for MMD. 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 -30.1% for MMD and -34.3% for VOO. 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MMD charges 2.33% per year while VOO charges 0.03%. On a $10,000 position that is $233 vs $3 annually, a gap of $230 per year that compounds over a long holding period. On income, MMD currently yields 4.59% against 1.09% for VOO.

Holdings Overlap

0.0%overlap

MMD and VOO share 0 holdings out of 554 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, MMD or VOO?

MMD has an expense ratio of 2.33% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $230 per year of difference.

Which performed better, MMD or VOO?

Over the past year MMD returned +7.09% vs +22.62% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (14 years), MMD annualized -0.11% vs +13.55% for VOO. Past performance does not guarantee future results.

Which is riskier, MMD or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 11.2% for MMD. Worst drawdown: MMD -30.1% vs VOO -34.3%.

Should I hold both MMD and VOO?

MMD and VOO have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MMD and VOO?

MMD and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 554 unique securities.

Which pays a higher dividend, MMD or VOO?

MMD yields 4.59% while VOO yields 1.09%, so MMD currently pays the higher dividend yield.

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