NEA vs VYM
Nuveen AMT-Free Quality Municipal Income Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. NEA offers more diversification with 1,108 holdings.
Side-by-Side Comparison
| Metric | NEA | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 3.53% | 0.04% | |
| AUM | - | $79.0B | |
| Dividend Yield | 7.11% | 2.86% | |
| Holdings | 1,108 | 568 | |
| YTD Return | +2.13% | +16.78% | |
| 1Y Return | +11.20% | +24.43% | |
| 3Y Return (annualized) | +9.60% | +18.60% | |
| 5Y Return (annualized) | -0.70% | +12.30% | |
| Volatility (annualized) | 13.1% | 14.6% | |
| Max Drawdown | -48.1% | -58.8% | |
| Fund Family | Nuveen | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 21, 2002 | Nov 10, 2006 |
NEA vs VYM Performance
Nuveen AMT-Free Quality Municipal Income Fund (NEA) is a ETF from Nuveen and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year NEA returned +11.20% while VYM returned +24.43%. Year to date, NEA is up 2.13% versus a gain of 16.78% for VYM.
Over three years, NEA compounded at +9.60% per year against +18.60% for VYM; over five years the annualized figures are -0.70% and +12.30% respectively. Across the full 20-year window we track, VYM has the edge at +7.11% annualized vs +0.17%. 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 13.1% 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 -48.1% for NEA 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 0.22. They move independently enough that combining them can meaningfully diversify a portfolio.
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 7.11% against 2.86% for VYM.
Holdings Overlap
NEA and VYM share 0 holdings out of 963 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, NEA or VYM?
NEA has an expense ratio of 3.53% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $349 per year of difference.
Which performed better, NEA or VYM?
Over the past year NEA returned +11.20% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), NEA annualized +0.17% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, NEA or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.1% for NEA. Worst drawdown: NEA -48.1% vs VYM -58.8%.
Should I hold both NEA and VYM?
NEA and VYM have a monthly-return correlation of 0.22, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NEA and VYM?
NEA and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 963 unique securities.
Which pays a higher dividend, NEA or VYM?
NEA yields 7.11% while VYM yields 2.86%, so NEA currently pays the higher dividend yield.
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