MUS vs VYM
BlackRock MuniHoldings 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 | MUS | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.50% | 0.04% | |
| AUM | $181M | $79.0B | |
| Dividend Yield | 0.78% | 2.86% | |
| Holdings | 233 | 568 | |
| YTD Return | -1.56% | +16.53% | |
| 1Y Return | +4.00% | +25.03% | |
| 3Y Return (annualized) | +5.89% | +18.54% | |
| 5Y Return (annualized) | +4.30% | +12.25% | |
| Volatility (annualized) | 12.2% | 14.6% | |
| Max Drawdown | -41.3% | -58.8% | |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | May 1, 1998 | Nov 10, 2006 |
MUS vs VYM Performance
BlackRock MuniHoldings Quality Fund, Inc. (MUS) is a ETF from BlackRock, Inc. (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MUS returned +4.00% while VYM returned +25.03%. Year to date, MUS is down 1.56% versus a gain of 16.53% for VYM.
Over three years, MUS compounded at +5.89% per year against +18.54% for VYM; over five years the annualized figures are +4.30% and +12.25% respectively. Across the full 20-year window we track, MUS has the edge at +8.27% annualized vs +7.10%. 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 MUS. 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 -41.3% for MUS 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 0.13. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MUS charges 1.50% per year while VYM charges 0.04%. On a $10,000 position that is $150 vs $4 annually, a gap of $146 per year that compounds over a long holding period. On income, MUS currently yields 0.78% against 2.86% for VYM.
Frequently Asked Questions
Which is cheaper, MUS or VYM?
MUS has an expense ratio of 1.50% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $146 per year of difference.
Which performed better, MUS or VYM?
Over the past year MUS returned +4.00% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), MUS annualized +8.27% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, MUS or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 12.2% for MUS. Worst drawdown: MUS -41.3% vs VYM -58.8%.
Should I hold both MUS and VYM?
MUS and VYM have a monthly-return correlation of 0.13, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, MUS or VYM?
MUS yields 0.78% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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