MMD vs VYM
NYLI MacKay DefinedTerm Muni Opportunities 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 | MMD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 2.33% | 0.04% | |
| AUM | $478M | $79.0B | |
| Dividend Yield | 4.59% | 2.86% | |
| Holdings | 90 | 568 | |
| YTD Return | +3.22% | +16.10% | |
| 1Y Return | +6.87% | +25.99% | |
| 3Y Return (annualized) | +1.20% | +18.29% | |
| 5Y Return (annualized) | -3.55% | +12.35% | |
| Volatility (annualized) | 11.2% | 14.6% | |
| Max Drawdown | -30.1% | -58.8% | |
| Fund Family | New York Life Investments | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Jun 27, 2012 | Nov 10, 2006 |
MMD vs VYM Performance
NYLI MacKay DefinedTerm Muni Opportunities Fund (MMD) 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 MMD returned +6.87% while VYM returned +25.99%. Year to date, MMD is up 3.22% versus a gain of 16.10% for VYM.
Over three years, MMD compounded at +1.20% per year against +18.29% for VYM; over five years the annualized figures are -3.55% and +12.35% respectively. Across the full 14-year window we track, VYM has the edge at +7.08% annualized vs -0.12%. 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 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 -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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MMD charges 2.33% per year while VYM charges 0.04%. On a $10,000 position that is $233 vs $4 annually, a gap of $229 per year that compounds over a long holding period. On income, MMD currently yields 4.59% against 2.86% for VYM.
Holdings Overlap
MMD and VYM share 0 holdings out of 607 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 VYM?
MMD has an expense ratio of 2.33% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $229 per year of difference.
Which performed better, MMD or VYM?
Over the past year MMD returned +6.87% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (14 years), MMD annualized -0.12% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, MMD or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 11.2% for MMD. Worst drawdown: MMD -30.1% vs VYM -58.8%.
Should I hold both MMD and VYM?
MMD and VYM have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MMD and VYM?
MMD and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 607 unique securities.
Which pays a higher dividend, MMD or VYM?
MMD yields 4.59% while VYM yields 2.86%, so MMD currently pays the higher dividend yield.
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