NEA vs VYM
Nuveen AMT-Free Quality Municipal Income Fund vs Vanguard High Dividend Yield ETF
Which is better, NEA or VYM?
Municipal Bond 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 | NEA | VYM |
|---|---|---|
| Expense Ratio | 3.53% | 0.04%Best |
| AUM | - | $81.6B |
| Dividend Yield | 7.38% | 2.22% |
| Holdings | 1,108 | 613 |
| YTD Return | -1.40% | +13.75%Best |
| 1Y Return | +4.66% | +19.42%Best |
| 3Y Return (annualized) | +9.59% | +18.22%Best |
| 5Y Return (annualized) | -1.46% | +12.17%Best |
| Volatility (annualized) | 13.0%Best | 14.5% |
| Max Drawdown | -48.0%Best | -58.8% |
| $10,000 over 5 years | $9,291 | $17,758Best |
| Fund Family | Nuveen | Vanguard (US) |
| Category | Tax Preferred | Equity |
| Style | Municipal Bond | Large Cap Value |
| Inception | Nov 21, 2002 | 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 9, 2026 (19.8 years).
NEA 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
NEA vs VYM Performance
Nuveen AMT-Free Quality Municipal Income Fund (NEA) is an ETF from Nuveen and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year NEA returned +4.66% while VYM returned +19.42%. Year to date, NEA is down 1.40% versus a gain of 13.75% for VYM.
Over three years, NEA compounded at +9.59% per year against +18.22% for VYM; over five years the annualized figures are -1.46% and +12.17% respectively. Across the full 20-year window we track, VYM has the edge at +6.94% annualized vs +0.18%.
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 13.0% for NEA. 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 -48.0% for NEA 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 0.22. They move largely independently of each other.
Fees and Cost Over Time
NEA charges 3.53% per year while VYM charges 0.04%. On a $10,000 position that is $353 vs $4 annually, a gap of $349 per year that compounds over a long holding period. On income, NEA currently yields 7.38% against 2.22% for VYM.
Holdings Overlap
We hold position weights for 405 holdings in NEA and 603 in VYM, totalling 74.9% 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 405 positions we hold weights for in NEA and 603 in VYM, against full books of 1,108 and 613.
You are not choosing between two funds in isolation.
Whichever of NEA 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, NEA or VYM?
NEA has an expense ratio of 3.53% while VYM charges 0.04%. VYM is the cheaper option, by $349 a year on a $10,000 investment.
Which performed better, NEA or VYM?
Over the past year NEA returned +4.66% vs +19.42% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), NEA annualized +0.18% vs +6.94% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, NEA or VYM?
VYM has been the more volatile fund at 14.5% annualized versus 13.0% for NEA. Worst drawdown: NEA -48.0% vs VYM -58.8%.
Should I hold both NEA and VYM?
NEA and VYM have a monthly-return correlation of 0.22, 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, NEA or VYM?
NEA yields 7.38% while VYM yields 2.22%, so NEA currently pays the higher dividend yield.
Is VYM better than NEA?
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.