MUNY vs VOO

Quick Verdict

VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.

Lower Fees: VOOHigher Returns: VOOMore Diversified: VOO

Side-by-Side Comparison

MetricMUNYVOOWinner
Expense Ratio0.09%0.03%
AUM$447M$979.0B
Dividend Yield3.11%1.09%
Holdings3,016509
YTD Return-1.04%+13.44%
1Y Return+3.02%+22.62%
3Y Return (annualized)-+21.47%
5Y Return (annualized)-+13.27%
Volatility (annualized)4.3%14.1%
Max Drawdown-3.2%-34.3%
Fund FamilyVanguard (US)Vanguard (US)
CategoryTax PreferredEquity
InceptionMay 20, 2025Sep 7, 2010

MUNY vs VOO Performance

Vanguard New York Tax-Exempt Bond ETF (MUNY) is a ETF from Vanguard (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year MUNY returned +3.02% while VOO returned +22.62%. Year to date, MUNY is down 1.04% versus a gain of 13.44% for VOO.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 4.3% for MUNY. 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 MUNY and -34.3% for VOO. 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MUNY charges 0.09% per year while VOO charges 0.03%. On a $10,000 position that is $9 vs $3 annually, a gap of $6 per year that compounds over a long holding period. On income, MUNY currently yields 3.11% against 1.09% for VOO.

Holdings Overlap

0.0%overlap

MUNY and VOO share 0 holdings out of 855 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, MUNY or VOO?

MUNY has an expense ratio of 0.09% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $6 per year of difference.

Which performed better, MUNY or VOO?

Over the past year MUNY returned +3.02% vs +22.62% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (1 years), MUNY annualized +3.53% vs +13.55% for VOO. Past performance does not guarantee future results.

Which is riskier, MUNY or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 4.3% for MUNY. Worst drawdown: MUNY -3.2% vs VOO -34.3%.

Should I hold both MUNY and VOO?

MUNY and VOO have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MUNY and VOO?

MUNY and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 855 unique securities.

Which pays a higher dividend, MUNY or VOO?

MUNY yields 3.11% while VOO yields 1.09%, so MUNY currently pays the higher dividend yield.

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