NBB vs VYM
Nuveen Taxable 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 | NBB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 2.10% | 0.04% | |
| AUM | - | $79.0B | |
| Dividend Yield | 7.17% | 2.86% | |
| Holdings | 155 | 568 | |
| YTD Return | +1.85% | +15.80% | |
| 1Y Return | +3.82% | +26.12% | |
| 3Y Return (annualized) | +8.65% | +18.25% | |
| 5Y Return (annualized) | -1.20% | +12.51% | |
| Volatility (annualized) | 11.1% | 14.6% | |
| Max Drawdown | -33.5% | -58.8% | |
| Fund Family | Nuveen | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Apr 28, 2010 | Nov 10, 2006 |
NBB vs VYM Performance
Nuveen Taxable Municipal Income Fund (NBB) is a ETF from Nuveen and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year NBB returned +3.82% while VYM returned +26.12%. Year to date, NBB is up 1.85% versus a gain of 15.80% for VYM.
Over three years, NBB compounded at +8.65% per year against +18.25% for VYM; over five years the annualized figures are -1.20% and +12.51% respectively. Across the full 16-year window we track, VYM has the edge at +7.07% annualized vs +0.77%. 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 11.1% for NBB. 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 -33.5% for NBB 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NBB charges 2.10% per year while VYM charges 0.04%. On a $10,000 position that is $210 vs $4 annually, a gap of $206 per year that compounds over a long holding period. On income, NBB currently yields 7.17% against 2.86% for VYM.
Holdings Overlap
NBB and VYM share 0 holdings out of 559 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, NBB or VYM?
NBB has an expense ratio of 2.10% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $206 per year of difference.
Which performed better, NBB or VYM?
Over the past year NBB returned +3.82% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (16 years), NBB annualized +0.77% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, NBB or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 11.1% for NBB. Worst drawdown: NBB -33.5% vs VYM -58.8%.
Should I hold both NBB and VYM?
NBB and VYM have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NBB and VYM?
NBB and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.
Which pays a higher dividend, NBB or VYM?
NBB yields 7.17% while VYM yields 2.86%, so NBB currently pays the higher dividend yield.
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