MUC vs VYM
BlackRock MuniHoldings California Quality Fund, Inc 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 | MUC | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 2.82% | 0.04% | |
| AUM | $1.4B | $79.0B | |
| Dividend Yield | 5.40% | 2.86% | |
| Holdings | 213 | 568 | |
| YTD Return | +4.40% | +16.16% | |
| 1Y Return | +11.21% | +26.05% | |
| 3Y Return (annualized) | +6.38% | +18.43% | |
| 5Y Return (annualized) | -3.10% | +12.21% | |
| Volatility (annualized) | 12.8% | 14.6% | |
| Max Drawdown | -56.6% | -58.8% | |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Feb 27, 1998 | Nov 10, 2006 |
MUC vs VYM Performance
BlackRock MuniHoldings California Quality Fund, Inc (MUC) is a ETF from BlackRock, Inc. (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MUC returned +11.21% while VYM returned +26.05%. Year to date, MUC is up 4.40% versus a gain of 16.16% for VYM.
Over three years, MUC compounded at +6.38% per year against +18.43% for VYM; over five years the annualized figures are -3.10% and +12.21% respectively. Across the full 20-year window we track, VYM has the edge at +7.09% annualized vs -0.18%. 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 12.8% for MUC. 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 -56.6% for MUC 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 0.27. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MUC charges 2.82% per year while VYM charges 0.04%. On a $10,000 position that is $282 vs $4 annually, a gap of $278 per year that compounds over a long holding period. On income, MUC currently yields 5.40% against 2.86% for VYM.
Holdings Overlap
MUC and VYM share 0 holdings out of 642 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, MUC or VYM?
MUC has an expense ratio of 2.82% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $278 per year of difference.
Which performed better, MUC or VYM?
Over the past year MUC returned +11.21% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), MUC annualized -0.18% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, MUC or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 12.8% for MUC. Worst drawdown: MUC -56.6% vs VYM -58.8%.
Should I hold both MUC and VYM?
MUC and VYM have a monthly-return correlation of 0.27, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MUC and VYM?
MUC and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 642 unique securities.
Which pays a higher dividend, MUC or VYM?
MUC yields 5.40% while VYM yields 2.86%, so MUC currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.