NCLO vs VYM
Nuveen AA-BBB CLO ETF 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 | NCLO | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.26% | 0.04% | |
| AUM | $148M | $79.0B | |
| Dividend Yield | 5.77% | 2.86% | |
| Holdings | 99 | 568 | |
| YTD Return | +3.02% | +16.78% | |
| 1Y Return | +5.43% | +24.43% | |
| 3Y Return (annualized) | - | +18.60% | |
| 5Y Return (annualized) | - | +12.30% | |
| Volatility (annualized) | 1.2% | 14.6% | |
| Max Drawdown | -3.0% | -58.8% | |
| Fund Family | Nuveen | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 10, 2024 | Nov 10, 2006 |
NCLO vs VYM Performance
Nuveen AA-BBB CLO ETF (NCLO) is a ETF from Nuveen and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year NCLO returned +5.43% while VYM returned +24.43%. Year to date, NCLO is up 3.02% versus a gain of 16.78% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 1.2% for NCLO. 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 -3.0% for NCLO 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NCLO charges 0.26% per year while VYM charges 0.04%. On a $10,000 position that is $26 vs $4 annually, a gap of $22 per year that compounds over a long holding period. On income, NCLO currently yields 5.77% against 2.86% for VYM.
Holdings Overlap
NCLO and VYM share 0 holdings out of 561 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, NCLO or VYM?
NCLO has an expense ratio of 0.26% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, NCLO or VYM?
Over the past year NCLO returned +5.43% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), NCLO annualized +5.38% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, NCLO or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 1.2% for NCLO. Worst drawdown: NCLO -3.0% vs VYM -58.8%.
Should I hold both NCLO and VYM?
NCLO and VYM have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NCLO and VYM?
NCLO and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 561 unique securities.
Which pays a higher dividend, NCLO or VYM?
NCLO yields 5.77% while VYM yields 2.86%, so NCLO currently pays the higher dividend yield.
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