NDMO vs VYM
Nuveen Dynamic Municipal Opportunities 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 | NDMO | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 2.92% | 0.04% | |
| AUM | - | $79.0B | |
| Dividend Yield | 7.09% | 2.86% | |
| Holdings | 543 | 568 | |
| YTD Return | +3.39% | +15.80% | |
| 1Y Return | +9.81% | +26.12% | |
| 3Y Return (annualized) | +5.06% | +18.25% | |
| 5Y Return (annualized) | -3.82% | +12.51% | |
| Volatility (annualized) | 18.2% | 14.6% | |
| Max Drawdown | -42.5% | -58.8% | |
| Fund Family | Nuveen | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Aug 26, 2020 | Nov 10, 2006 |
NDMO vs VYM Performance
Nuveen Dynamic Municipal Opportunities Fund (NDMO) is a ETF from Nuveen and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year NDMO returned +9.81% while VYM returned +26.12%. Year to date, NDMO is up 3.39% versus a gain of 15.80% for VYM.
Over three years, NDMO compounded at +5.06% per year against +18.25% for VYM; over five years the annualized figures are -3.82% and +12.51% respectively. Across the full 6-year window we track, VYM has the edge at +7.07% annualized vs -0.47%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
NDMO has been the more volatile fund, with annualized monthly volatility of 18.2% compared with 14.6% for VYM. 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 -42.5% for NDMO 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NDMO charges 2.92% per year while VYM charges 0.04%. On a $10,000 position that is $292 vs $4 annually, a gap of $288 per year that compounds over a long holding period. On income, NDMO currently yields 7.09% against 2.86% for VYM.
Holdings Overlap
NDMO and VYM share 0 holdings out of 756 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, NDMO or VYM?
NDMO has an expense ratio of 2.92% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $288 per year of difference.
Which performed better, NDMO or VYM?
Over the past year NDMO returned +9.81% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), NDMO annualized -0.47% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, NDMO or VYM?
NDMO has been the more volatile fund at 18.2% annualized versus 14.6% for VYM. Worst drawdown: NDMO -42.5% vs VYM -58.8%.
Should I hold both NDMO and VYM?
NDMO and VYM have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NDMO and VYM?
NDMO and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 756 unique securities.
Which pays a higher dividend, NDMO or VYM?
NDMO yields 7.09% while VYM yields 2.86%, so NDMO currently pays the higher dividend yield.
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