MUSI vs VYM

MUSI vs VYM

Which is better, MUSI or VYM?

VYM has been ahead.

VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.

Lower Fees: VYMHigher Returns: VYM

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricMUSIVYM
Expense Ratio0.38%0.04%Best
AUM$262M$81.6B
Dividend Yield5.49%2.22%
Holdings419613
YTD Return-0.87%+13.91%Best
1Y Return+0.13%+17.57%Best
3Y Return (annualized)+5.78%+18.12%Best
5Y Return (annualized)+1.52%+12.17%Best
Volatility (annualized)5.4%Best13.6%
Max Drawdown-13.9%Best-15.8%
$10,000 over 5 years$10,783$17,758Best
Fund FamilyAmerican Century InvestmentsVanguard (US)
CategoryFixed IncomeEquity
Style-Large Cap Value
InceptionJun 29, 2021Nov 10, 2006

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Jul 1, 2021 to Sep 11, 2026 (5.2 years).

MUSI vs VYM growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5.2 years both funds cover.

MUSI vs VYM Performance

American Century Multisector Income ETF (MUSI) is an ETF from American Century Investments and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year MUSI returned +0.13% while VYM returned +17.57%. Year to date, MUSI is down 0.87% versus a gain of 13.91% for VYM.

Over three years, MUSI compounded at +5.78% per year against +18.12% for VYM; over five years the annualized figures are +1.52% and +12.17% respectively.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 5.4% for MUSI. 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 -13.9% for MUSI and -15.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.65. They move together some of the time, and apart the rest.

Fees and Cost Over Time

MUSI charges 0.38% per year while VYM charges 0.04%. On a $10,000 position that is $38 vs $4 annually, a gap of $34 per year that compounds over a long holding period. On income, MUSI currently yields 5.49% against 2.22% for VYM.

Holdings Overlap

VYM already in MUSI0.9%

At least 0.9% of VYM's money is in holdings MUSI also owns.

Stated as a floor: for MUSI, our book for it covers 40.7% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

We cannot see either book well enough to say how much of this pair is duplicated.

1 positions in common, counted across the 149 positions we hold weights for in MUSI and 603 in VYM, against full books of 419 and 613.

Top Shared Holdings

StockWeight in MUSIWeight in VYMDifference
CCitigroup Inc V/R /Perp0.44%0.94%0.50%

You are not choosing between two funds in isolation.

Whichever of MUSI and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

MUSIVYM

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, MUSI or VYM?

MUSI has an expense ratio of 0.38% while VYM charges 0.04%. VYM is the cheaper option, by $34 a year on a $10,000 investment.

Which performed better, MUSI or VYM?

Over the past year MUSI returned +0.13% vs +17.57% for VYM, so VYM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, MUSI or VYM?

VYM has been the more volatile fund at 13.6% annualized versus 5.4% for MUSI. Worst drawdown: MUSI -13.9% vs VYM -15.8%.

Should I hold both MUSI and VYM?

MUSI and VYM have a monthly-return correlation of 0.65, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, MUSI or VYM?

MUSI yields 5.49% while VYM yields 2.22%, so MUSI currently pays the higher dividend yield.

Is VYM better than MUSI?

VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.