NAC 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

MetricNACVOOWinner
Expense Ratio3.79%0.03%
AUM-$979.0B
Dividend Yield7.49%1.09%
Holdings346509
YTD Return+4.52%+13.72%
1Y Return+13.17%+21.63%
3Y Return (annualized)+11.22%+21.55%
5Y Return (annualized)+0.08%+13.26%
Volatility (annualized)13.0%14.1%
Max Drawdown-53.7%-34.3%
Fund FamilyNuveenVanguard (US)
CategoryTax PreferredEquity
InceptionMay 26, 1999Sep 7, 2010

NAC vs VOO Performance

Nuveen California Quality Municipal Income Fund (NAC) is a ETF from Nuveen and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year NAC returned +13.17% while VOO returned +21.63%. Year to date, NAC is up 4.52% versus a gain of 13.72% for VOO.

Over three years, NAC compounded at +11.22% per year against +21.55% for VOO; over five years the annualized figures are +0.08% and +13.26% respectively. Across the full 16-year window we track, VOO has the edge at +13.56% annualized vs +0.26%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 13.0% for NAC. 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 -53.7% for NAC 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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

NAC charges 3.79% per year while VOO charges 0.03%. On a $10,000 position that is $379 vs $3 annually, a gap of $376 per year that compounds over a long holding period. On income, NAC currently yields 7.49% against 1.09% for VOO.

Holdings Overlap

0.0%overlap

NAC and VOO share 0 holdings out of 645 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, NAC or VOO?

NAC has an expense ratio of 3.79% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $376 per year of difference.

Which performed better, NAC or VOO?

Over the past year NAC returned +13.17% vs +21.63% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), NAC annualized +0.26% vs +13.56% for VOO. Past performance does not guarantee future results.

Which is riskier, NAC or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 13.0% for NAC. Worst drawdown: NAC -53.7% vs VOO -34.3%.

Should I hold both NAC and VOO?

NAC and VOO have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between NAC and VOO?

NAC and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 645 unique securities.

Which pays a higher dividend, NAC or VOO?

NAC yields 7.49% while VOO yields 1.09%, so NAC currently pays the higher dividend yield.

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