MMSD vs VYM
NYLI MacKay Muni Short Duration 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 | MMSD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.04% | |
| AUM | $75M | $79.0B | |
| Dividend Yield | 3.85% | 2.86% | |
| Holdings | 124 | 568 | |
| YTD Return | +1.50% | +16.10% | |
| 1Y Return | +3.06% | +25.99% | |
| 3Y Return (annualized) | - | +18.29% | |
| 5Y Return (annualized) | - | +12.35% | |
| Volatility (annualized) | 1.8% | 14.6% | |
| Max Drawdown | -1.4% | -58.8% | |
| Fund Family | New York Life Investments | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 6, 2025 | Nov 10, 2006 |
MMSD vs VYM Performance
NYLI MacKay Muni Short Duration ETF (MMSD) 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 MMSD returned +3.06% while VYM returned +25.99%. Year to date, MMSD is up 1.50% versus a gain of 16.10% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 1.8% for MMSD. 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 -1.4% for MMSD 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MMSD charges 0.25% per year while VYM charges 0.04%. On a $10,000 position that is $25 vs $4 annually, a gap of $21 per year that compounds over a long holding period. On income, MMSD currently yields 3.85% against 2.86% for VYM.
Holdings Overlap
MMSD and VYM share 0 holdings out of 589 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, MMSD or VYM?
MMSD has an expense ratio of 0.25% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, MMSD or VYM?
Over the past year MMSD returned +3.06% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), MMSD annualized +4.14% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, MMSD or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 1.8% for MMSD. Worst drawdown: MMSD -1.4% vs VYM -58.8%.
Should I hold both MMSD and VYM?
MMSD and VYM have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MMSD and VYM?
MMSD and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 589 unique securities.
Which pays a higher dividend, MMSD or VYM?
MMSD yields 3.85% while VYM yields 2.86%, so MMSD currently pays the higher dividend yield.
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