NAC vs VYM
Nuveen California Quality Municipal Income Fund 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 | NAC | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 3.79% | 0.04% | |
| AUM | - | $79.0B | |
| Dividend Yield | 7.49% | 2.86% | |
| Holdings | 346 | 568 | |
| YTD Return | +4.43% | +16.10% | |
| 1Y Return | +13.12% | +25.99% | |
| 3Y Return (annualized) | +11.09% | +18.29% | |
| 5Y Return (annualized) | -0.26% | +12.35% | |
| Volatility (annualized) | 13.0% | 14.6% | |
| Max Drawdown | -53.7% | -58.8% | |
| Fund Family | Nuveen | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | May 26, 1999 | Nov 10, 2006 |
NAC vs VYM Performance
Nuveen California Quality Municipal Income Fund (NAC) is a ETF from Nuveen and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year NAC returned +13.12% while VYM returned +25.99%. Year to date, NAC is up 4.43% versus a gain of 16.10% for VYM.
Over three years, NAC compounded at +11.09% per year against +18.29% for VYM; over five years the annualized figures are -0.26% and +12.35% respectively. Across the full 20-year window we track, VYM has the edge at +7.08% annualized vs +0.26%. 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 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 -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 0.25. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NAC charges 3.79% per year while VYM charges 0.04%. On a $10,000 position that is $379 vs $4 annually, a gap of $375 per year that compounds over a long holding period. On income, NAC currently yields 7.49% against 2.86% for VYM.
Holdings Overlap
NAC and VYM share 0 holdings out of 698 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 VYM?
NAC has an expense ratio of 3.79% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $375 per year of difference.
Which performed better, NAC or VYM?
Over the past year NAC returned +13.12% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), NAC annualized +0.26% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, NAC or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.0% for NAC. Worst drawdown: NAC -53.7% vs VYM -58.8%.
Should I hold both NAC and VYM?
NAC and VYM have a monthly-return correlation of 0.25, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NAC and VYM?
NAC and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 698 unique securities.
Which pays a higher dividend, NAC or VYM?
NAC yields 7.49% while VYM yields 2.86%, so NAC currently pays the higher dividend yield.
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