MUNI vs VYM
PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund 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 | MUNI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.04% | |
| AUM | $3.1B | $79.0B | |
| Dividend Yield | 3.28% | 2.86% | |
| Holdings | 580 | 568 | |
| YTD Return | +0.60% | +15.80% | |
| 1Y Return | +4.45% | +26.12% | |
| 3Y Return (annualized) | +3.66% | +18.25% | |
| 5Y Return (annualized) | +1.05% | +12.51% | |
| Volatility (annualized) | 3.9% | 14.6% | |
| Max Drawdown | -11.2% | -58.8% | |
| Fund Family | PIMCO (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 30, 2009 | Nov 10, 2006 |
MUNI vs VYM Performance
PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund (MUNI) is a ETF from PIMCO (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MUNI returned +4.45% while VYM returned +26.12%. Year to date, MUNI is up 0.60% versus a gain of 15.80% for VYM.
Over three years, MUNI compounded at +3.66% per year against +18.25% for VYM; over five years the annualized figures are +1.05% and +12.51% respectively. Across the full 17-year window we track, VYM has the edge at +7.07% annualized vs +1.13%. 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 3.9% for MUNI. 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 -11.2% for MUNI 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 0.23. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MUNI charges 0.35% per year while VYM charges 0.04%. On a $10,000 position that is $35 vs $4 annually, a gap of $31 per year that compounds over a long holding period. On income, MUNI currently yields 3.28% against 2.86% for VYM.
Holdings Overlap
MUNI and VYM share 0 holdings out of 937 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, MUNI or VYM?
MUNI has an expense ratio of 0.35% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, MUNI or VYM?
Over the past year MUNI returned +4.45% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (17 years), MUNI annualized +1.13% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, MUNI or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 3.9% for MUNI. Worst drawdown: MUNI -11.2% vs VYM -58.8%.
Should I hold both MUNI and VYM?
MUNI and VYM have a monthly-return correlation of 0.23, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MUNI and VYM?
MUNI and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 937 unique securities.
Which pays a higher dividend, MUNI or VYM?
MUNI yields 3.28% while VYM yields 2.86%, so MUNI currently pays the higher dividend yield.
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