MMD vs VYM

MMD vs VYM

Which is better, MMD or VYM?

Municipal Bond against Large Cap Value.

VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.

Lower Fees: VYMHigher Returns: VYM

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricMMDVYM
Expense Ratio2.33%0.04%Best
AUM$478M$83.1B
Dividend Yield4.82%2.22%
Holdings96608
YTD Return-3.70%+11.86%Best
1Y Return-3.89%+16.81%Best
3Y Return (annualized)+2.13%+18.64%Best
5Y Return (annualized)-3.67%+11.86%Best
Volatility (annualized)11.4%Best13.1%
Max Drawdown-30.1%Best-35.7%
$10,000 over 5 years$8,295$17,514Best
Fund FamilyNew York Life InvestmentsVanguard (US)
CategoryTax PreferredEquity
StyleMunicipal BondLarge Cap Value
InceptionJun 27, 2012Nov 10, 2006

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Jun 27, 2012 to Oct 13, 2026 (14.3 years).

MMD vs VYM growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 14.3 years both funds cover.

MMD vs VYM Performance

NYLIM MacKay DefinedTerm Muni Opportunities Fund (MMD) is an ETF from New York Life Investments and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year MMD returned -3.89% while VYM returned +16.81%. Year to date, MMD is down 3.70% versus a gain of 11.86% for VYM.

Over three years, MMD compounded at +2.13% per year against +18.64% for VYM; over five years the annualized figures are -3.67% and +11.86% respectively. Across the full 14-year window we track, VYM has the edge at +10.16% annualized vs -0.60%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 13.1% compared with 11.4% 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 -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.42. They move together some of the time, and apart the rest.

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 4.82% against 2.22% for VYM.

Holdings Overlap

We hold position weights for 34 holdings in MMD and 557 in VYM, totalling 46.5% and 99.2% of the two funds. The two books name no position in common, so there is no overlap percentage to show.

0 positions in common, counted across the 34 positions we hold weights for in MMD and 557 in VYM, against full books of 96 and 608.

You are not choosing between two funds in isolation.

Whichever of MMD and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

MMDVYM

Free for up to 10 holdings. No account needed.

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, by $229 a year on a $10,000 investment.

Which performed better, MMD or VYM?

Over the past year MMD returned -3.89% vs +16.81% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (14 years), MMD annualized -0.60% vs +10.16% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, MMD or VYM?

VYM has been the more volatile fund at 13.1% annualized versus 11.4% for MMD. Worst drawdown: MMD -30.1% vs VYM -35.7%.

Should I hold both MMD and VYM?

MMD and VYM have a monthly-return correlation of 0.42, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, MMD or VYM?

MMD yields 4.82% while VYM yields 2.22%, so MMD currently pays the higher dividend yield.

Is VYM better than MMD?

VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.