MUNC vs VYM
MUNC vs VYM
Northern Trust 2045 Tax-Exempt Distributing Ladder 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 | MUNC | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.04% | |
| AUM | $8M | $79.0B | |
| Dividend Yield | 2.50% | 2.86% | |
| Holdings | 151 | 568 | |
| YTD Return | -0.10% | +15.80% | |
| 1Y Return | +3.72% | +26.12% | |
| 3Y Return (annualized) | - | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 4.6% | 14.6% | |
| Max Drawdown | -3.2% | -58.8% | |
| Fund Family | Northern Trust Asset Management | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 28, 2025 | Nov 10, 2006 |
MUNC vs VYM Performance
Northern Trust 2045 Tax-Exempt Distributing Ladder ETF (MUNC) is a ETF from Northern Trust Asset Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MUNC returned +3.72% while VYM returned +26.12%. Year to date, MUNC is down 0.10% versus a gain of 15.80% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 4.6% for MUNC. 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 -3.2% for MUNC 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MUNC charges 0.18% per year while VYM charges 0.04%. On a $10,000 position that is $18 vs $4 annually, a gap of $14 per year that compounds over a long holding period. On income, MUNC currently yields 2.50% against 2.86% for VYM.
Holdings Overlap
MUNC and VYM share 0 holdings out of 586 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, MUNC or VYM?
MUNC has an expense ratio of 0.18% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, MUNC or VYM?
Over the past year MUNC returned +3.72% vs +26.12% for VYM, so VYM leads on 1-year performance. Past performance does not guarantee future results.
Which is riskier, MUNC or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 4.6% for MUNC. Worst drawdown: MUNC -3.2% vs VYM -58.8%.
Should I hold both MUNC and VYM?
MUNC and VYM have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MUNC and VYM?
MUNC and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 586 unique securities.
Which pays a higher dividend, MUNC or VYM?
MUNC yields 2.50% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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