MUJ vs VYM
BlackRock MuniHoldings New Jersey 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 | MUJ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.77% | 0.04% | |
| AUM | $657M | $79.0B | |
| Dividend Yield | 5.10% | 2.86% | |
| Holdings | 242 | 568 | |
| YTD Return | +6.16% | +15.80% | |
| 1Y Return | +18.27% | +26.12% | |
| 3Y Return (annualized) | +9.32% | +18.25% | |
| 5Y Return (annualized) | +0.19% | +12.51% | |
| Volatility (annualized) | 12.2% | 14.6% | |
| Max Drawdown | -47.8% | -58.8% | |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Mar 11, 1998 | Nov 10, 2006 |
MUJ vs VYM Performance
BlackRock MuniHoldings New Jersey Quality Fund, Inc (MUJ) is a ETF from BlackRock, Inc. (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MUJ returned +18.27% while VYM returned +26.12%. Year to date, MUJ is up 6.16% versus a gain of 15.80% for VYM.
Over three years, MUJ compounded at +9.32% per year against +18.25% for VYM; over five years the annualized figures are +0.19% and +12.51% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs +0.26%. 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 12.2% for MUJ. 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 -47.8% for MUJ 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 0.26. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MUJ charges 1.77% per year while VYM charges 0.04%. On a $10,000 position that is $177 vs $4 annually, a gap of $173 per year that compounds over a long holding period. On income, MUJ currently yields 5.10% against 2.86% for VYM.
Holdings Overlap
MUJ and VYM share 0 holdings out of 605 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, MUJ or VYM?
MUJ has an expense ratio of 1.77% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $173 per year of difference.
Which performed better, MUJ or VYM?
Over the past year MUJ returned +18.27% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), MUJ annualized +0.26% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, MUJ or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 12.2% for MUJ. Worst drawdown: MUJ -47.8% vs VYM -58.8%.
Should I hold both MUJ and VYM?
MUJ and VYM have a monthly-return correlation of 0.26, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MUJ and VYM?
MUJ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 605 unique securities.
Which pays a higher dividend, MUJ or VYM?
MUJ yields 5.10% while VYM yields 2.86%, so MUJ currently pays the higher dividend yield.
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