NHYM vs VYM
Nuveen High Yield Municipal Income 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 616 holdings.
Side-by-Side Comparison
| Metric | NHYM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.04% | |
| AUM | $137M | $81.6B | |
| Dividend Yield | 4.58% | 2.24% | |
| Holdings | 263 | 616 | |
| YTD Return | +1.66% | +15.34% | |
| 1Y Return | +8.80% | +23.24% | |
| 3Y Return (annualized) | - | +19.22% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 5.5% | 14.6% | |
| Max Drawdown | -6.1% | -58.8% | |
| Fund Family | Nuveen | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 22, 2025 | Nov 10, 2006 |
NHYM vs VYM Performance
Nuveen High Yield Municipal Income ETF (NHYM) is a ETF from Nuveen and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year NHYM returned +8.80% while VYM returned +23.24%. Year to date, NHYM is up 1.66% versus a gain of 15.34% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 5.5% for NHYM. 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 -6.1% for NHYM 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NHYM charges 0.35% per year while VYM charges 0.04%. On a $10,000 position that is $35 vs $4 annually, a gap of $31 per year that compounds over a long holding period. On income, NHYM currently yields 4.58% against 2.24% for VYM.
Holdings Overlap
NHYM and VYM share 0 holdings out of 708 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, NHYM or VYM?
NHYM has an expense ratio of 0.35% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, NHYM or VYM?
Over the past year NHYM returned +8.80% vs +23.24% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), NHYM annualized +3.29% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, NHYM or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.5% for NHYM. Worst drawdown: NHYM -6.1% vs VYM -58.8%.
Should I hold both NHYM and VYM?
NHYM and VYM have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NHYM and VYM?
NHYM and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 708 unique securities.
Which pays a higher dividend, NHYM or VYM?
NHYM yields 4.58% while VYM yields 2.24%, so NHYM currently pays the higher dividend yield.
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