NAZ vs VYM
Nuveen Arizona Quality Municipal Income Fund vs Vanguard High Dividend Yield ETF
Which is better, NAZ or VYM?
Municipal Arizona against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.
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
| Metric | NAZ | VYM |
|---|---|---|
| Expense Ratio | 3.72% | 0.04%Best |
| AUM | - | $81.6B |
| Dividend Yield | 6.94% | 2.24% |
| Holdings | 219 | 613 |
| YTD Return | +5.99% | +15.29%Best |
| 1Y Return | +7.99% | +22.23%Best |
| 3Y Return (annualized) | +12.42% | +18.81%Best |
| 5Y Return (annualized) | -0.22% | +12.14%Best |
| Volatility (annualized) | 13.3%Best | 14.5% |
| Max Drawdown | -40.8%Best | -58.8% |
| $10,000 over 5 years | $9,890 | $17,734Best |
| Fund Family | Nuveen | Vanguard (US) |
| Category | Tax Preferred | Equity |
| Style | Municipal Arizona | Large Cap Value |
| Inception | Nov 19, 1992 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 3, 2026 (19.8 years).
NAZ 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 19.8 years both funds cover.
NAZ vs VYM Performance
Nuveen Arizona Quality Municipal Income Fund (NAZ) is an ETF from Nuveen and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year NAZ returned +7.99% while VYM returned +22.23%. Year to date, NAZ is up 5.99% versus a gain of 15.29% for VYM.
Over three years, NAZ compounded at +12.42% per year against +18.81% for VYM; over five years the annualized figures are -0.22% and +12.14% respectively. Across the full 20-year window we track, VYM has the edge at +7.02% annualized vs +0.76%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.5% compared with 13.3% for NAZ. 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 -40.8% for NAZ and -58.8% 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 0.26. They move largely independently of each other.
Fees and Cost Over Time
NAZ charges 3.72% per year while VYM charges 0.04%. On a $10,000 position that is $372 vs $4 annually, a gap of $368 per year that compounds over a long holding period. On income, NAZ currently yields 6.94% against 2.24% for VYM.
Holdings Overlap
We hold position weights for 39 holdings in NAZ and 603 in VYM, totalling 35.5% and 99.5% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 39 positions we hold weights for in NAZ and 603 in VYM, against full books of 219 and 613.
You are not choosing between two funds in isolation.
Whichever of NAZ and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, NAZ or VYM?
NAZ has an expense ratio of 3.72% while VYM charges 0.04%. VYM is the cheaper option, by $368 a year on a $10,000 investment.
Which performed better, NAZ or VYM?
Over the past year NAZ returned +7.99% vs +22.23% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), NAZ annualized +0.76% vs +7.02% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, NAZ or VYM?
VYM has been the more volatile fund at 14.5% annualized versus 13.3% for NAZ. Worst drawdown: NAZ -40.8% vs VYM -58.8%.
Should I hold both NAZ and VYM?
NAZ and VYM have a monthly-return correlation of 0.26, 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, NAZ or VYM?
NAZ yields 6.94% while VYM yields 2.24%, so NAZ currently pays the higher dividend yield.
Is VYM better than NAZ?
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.