MUST vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricMUSTVYMWinner
Expense Ratio0.23%0.04%
AUM$599M$79.0B
Dividend Yield3.31%2.86%
Holdings514568
YTD Return+0.40%+16.53%
1Y Return+4.75%+25.03%
3Y Return (annualized)+3.24%+18.54%
5Y Return (annualized)+0.41%+12.25%
Volatility (annualized)6.0%14.6%
Max Drawdown-13.8%-58.8%
Fund FamilyColumbia Threadneedle InvestmentsVanguard (US)
CategoryTax PreferredEquity
InceptionOct 10, 2018Nov 10, 2006

MUST vs VYM Performance

Columbia Multi-Sector Municipal Income ETF (MUST) is a ETF from Columbia Threadneedle Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MUST returned +4.75% while VYM returned +25.03%. Year to date, MUST is up 0.40% versus a gain of 16.53% for VYM.

Over three years, MUST compounded at +3.24% per year against +18.54% for VYM; over five years the annualized figures are +0.41% and +12.25% respectively. Across the full 8-year window we track, VYM has the edge at +7.10% annualized vs +2.02%. 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 6.0% for MUST. 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 -13.8% for MUST 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MUST charges 0.23% per year while VYM charges 0.04%. On a $10,000 position that is $23 vs $4 annually, a gap of $19 per year that compounds over a long holding period. On income, MUST currently yields 3.31% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

MUST and VYM share 0 holdings out of 661 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, MUST or VYM?

MUST has an expense ratio of 0.23% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $19 per year of difference.

Which performed better, MUST or VYM?

Over the past year MUST returned +4.75% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (8 years), MUST annualized +2.02% vs +7.10% for VYM. Past performance does not guarantee future results.

Which is riskier, MUST or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 6.0% for MUST. Worst drawdown: MUST -13.8% vs VYM -58.8%.

Should I hold both MUST and VYM?

MUST and VYM have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MUST and VYM?

MUST and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 661 unique securities.

Which pays a higher dividend, MUST or VYM?

MUST yields 3.31% while VYM yields 2.86%, so MUST currently pays the higher dividend yield.

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