NAD vs VYM
Nuveen 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 | NAD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 3.74% | 0.04% | |
| AUM | - | $79.0B | |
| Dividend Yield | 7.09% | 2.86% | |
| Holdings | 1,159 | 568 | |
| YTD Return | +1.87% | +16.16% | |
| 1Y Return | +11.69% | +26.05% | |
| 3Y Return (annualized) | +9.38% | +18.43% | |
| 5Y Return (annualized) | -0.56% | +12.21% | |
| Volatility (annualized) | 12.2% | 14.6% | |
| Max Drawdown | -51.9% | -58.8% | |
| Fund Family | Nuveen | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | May 26, 1999 | Nov 10, 2006 |
NAD vs VYM Performance
Nuveen Quality Municipal Income Fund (NAD) is a ETF from Nuveen and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year NAD returned +11.69% while VYM returned +26.05%. Year to date, NAD is up 1.87% versus a gain of 16.16% for VYM.
Over three years, NAD compounded at +9.38% per year against +18.43% for VYM; over five years the annualized figures are -0.56% and +12.21% respectively. Across the full 20-year window we track, VYM has the edge at +7.09% annualized vs +0.28%. 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 NAD. 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 -51.9% for NAD 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 0.26. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NAD charges 3.74% per year while VYM charges 0.04%. On a $10,000 position that is $374 vs $4 annually, a gap of $370 per year that compounds over a long holding period. On income, NAD currently yields 7.09% against 2.86% for VYM.
Holdings Overlap
NAD and VYM share 0 holdings out of 989 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, NAD or VYM?
NAD has an expense ratio of 3.74% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $370 per year of difference.
Which performed better, NAD or VYM?
Over the past year NAD returned +11.69% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), NAD annualized +0.28% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, NAD or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 12.2% for NAD. Worst drawdown: NAD -51.9% vs VYM -58.8%.
Should I hold both NAD and VYM?
NAD and VYM have a monthly-return correlation of 0.26, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NAD and VYM?
NAD and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 989 unique securities.
Which pays a higher dividend, NAD or VYM?
NAD yields 7.09% while VYM yields 2.86%, so NAD currently pays the higher dividend yield.
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