NAZ vs VYM
Nuveen Arizona 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 | NAZ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 3.72% | 0.04% | |
| AUM | - | $79.0B | |
| Dividend Yield | 6.80% | 2.86% | |
| Holdings | 219 | 568 | |
| YTD Return | +8.73% | +16.16% | |
| 1Y Return | +11.84% | +26.05% | |
| 3Y Return (annualized) | +12.57% | +18.43% | |
| 5Y Return (annualized) | +0.20% | +12.21% | |
| Volatility (annualized) | 12.3% | 14.6% | |
| Max Drawdown | -49.5% | -58.8% | |
| Fund Family | Nuveen | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 19, 1992 | Nov 10, 2006 |
NAZ vs VYM Performance
Nuveen Arizona Quality Municipal Income Fund (NAZ) is a ETF from Nuveen and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year NAZ returned +11.84% while VYM returned +26.05%. Year to date, NAZ is up 8.73% versus a gain of 16.16% for VYM.
Over three years, NAZ compounded at +12.57% per year against +18.43% for VYM; over five years the annualized figures are +0.20% and +12.21% respectively. Across the full 20-year window we track, VYM has the edge at +7.09% annualized vs +0.67%. 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 12.3% 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 -49.5% for NAZ 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
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 6.80% against 2.86% for VYM.
Holdings Overlap
NAZ and VYM share 0 holdings out of 597 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, NAZ or VYM?
NAZ has an expense ratio of 3.72% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $368 per year of difference.
Which performed better, NAZ or VYM?
Over the past year NAZ returned +11.84% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), NAZ annualized +0.67% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, NAZ or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 12.3% for NAZ. Worst drawdown: NAZ -49.5% vs VYM -58.8%.
Should I hold both NAZ and VYM?
NAZ 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 NAZ and VYM?
NAZ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 597 unique securities.
Which pays a higher dividend, NAZ or VYM?
NAZ yields 6.80% while VYM yields 2.86%, so NAZ currently pays the higher dividend yield.
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