NFJ vs VYM
Virtus Dividend, Interest & Premium Strategy Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. NFJ delivered stronger 1-year returns. VYM offers more diversification with 613 holdings.
Side-by-Side Comparison
| Metric | NFJ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.96% | 0.04% | |
| AUM | $1.5B | $81.6B | |
| Dividend Yield | 7.44% | 2.24% | |
| Holdings | 182 | 613 | |
| YTD Return | +25.30% | +14.87% | |
| 1Y Return | +31.17% | +21.39% | |
| 3Y Return (annualized) | +18.08% | +18.69% | |
| 5Y Return (annualized) | +8.60% | +11.98% | |
| Volatility (annualized) | 17.5% | 14.5% | |
| Max Drawdown | -70.3% | -58.8% | |
| Fund Family | Virtus Investment Partners | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Feb 28, 2005 | Nov 10, 2006 |
NFJ vs VYM Performance
Virtus Dividend, Interest & Premium Strategy Fund (NFJ) is a ETF from Virtus Investment Partners and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year NFJ returned +31.17% while VYM returned +21.39%. Year to date, NFJ is up 25.30% versus a gain of 14.87% for VYM.
Over three years, NFJ compounded at +18.08% per year against +18.69% for VYM; over five years the annualized figures are +8.60% and +11.98% respectively. Across the full 20-year window we track, VYM has the edge at +7.00% annualized vs -0.12%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
NFJ has been the more volatile fund, with annualized monthly volatility of 17.5% compared with 14.5% 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 -70.3% for NFJ 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
NFJ charges 0.96% per year while VYM charges 0.04%. On a $10,000 position that is $96 vs $4 annually, a gap of $92 per year that compounds over a long holding period. On income, NFJ currently yields 7.44% against 2.24% for VYM.
Holdings Overlap
NFJ and VYM share 43 holdings out of 713 unique holdings combined, representing a 13.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, NFJ or VYM?
NFJ has an expense ratio of 0.96% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $92 per year of difference.
Which performed better, NFJ or VYM?
Over the past year NFJ returned +31.17% vs +21.39% for VYM, so NFJ leads on 1-year performance. Over the longest common window we track (20 years), NFJ annualized -0.12% vs +7.00% for VYM. Past performance does not guarantee future results.
Which is riskier, NFJ or VYM?
NFJ has been the more volatile fund at 17.5% annualized versus 14.5% for VYM. Worst drawdown: NFJ -70.3% vs VYM -58.8%.
Should I hold both NFJ and VYM?
NFJ and VYM have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NFJ and VYM?
NFJ and VYM share 43 common holdings with a 13.5% weight overlap. Combined, they hold 713 unique securities.
Which pays a higher dividend, NFJ or VYM?
NFJ yields 7.44% while VYM yields 2.24%, so NFJ currently pays the higher dividend yield.
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