NIE vs VYM
Virtus Equity & Convertible Income 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 616 holdings.
Side-by-Side Comparison
| Metric | NIE | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.07% | 0.04% | |
| AUM | $832M | $81.6B | |
| Dividend Yield | 8.99% | 2.24% | |
| Holdings | 196 | 616 | |
| YTD Return | +8.84% | +14.95% | |
| 1Y Return | +16.78% | +21.14% | |
| 3Y Return (annualized) | +18.43% | +18.69% | |
| 5Y Return (annualized) | +9.28% | +12.00% | |
| Volatility (annualized) | 17.6% | 14.6% | |
| Max Drawdown | -63.8% | -58.8% | |
| Fund Family | Virtus Investment Partners | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Feb 27, 2007 | Nov 10, 2006 |
NIE vs VYM Performance
Virtus Equity & Convertible Income Fund (NIE) is a ETF from Virtus Investment Partners and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year NIE returned +16.78% while VYM returned +21.14%. Year to date, NIE is up 8.84% versus a gain of 14.95% for VYM.
Over three years, NIE compounded at +18.43% per year against +18.69% for VYM; over five years the annualized figures are +9.28% and +12.00% respectively. Across the full 20-year window we track, VYM has the edge at +7.01% annualized vs +3.52%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
NIE has been the more volatile fund, with annualized monthly volatility of 17.6% 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 -63.8% for NIE 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
NIE charges 1.07% per year while VYM charges 0.04%. On a $10,000 position that is $107 vs $4 annually, a gap of $103 per year that compounds over a long holding period. On income, NIE currently yields 8.99% against 2.24% for VYM.
Holdings Overlap
NIE and VYM share 40 holdings out of 724 unique holdings combined, representing a 18.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, NIE or VYM?
NIE has an expense ratio of 1.07% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $103 per year of difference.
Which performed better, NIE or VYM?
Over the past year NIE returned +16.78% vs +21.14% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), NIE annualized +3.52% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, NIE or VYM?
NIE has been the more volatile fund at 17.6% annualized versus 14.6% for VYM. Worst drawdown: NIE -63.8% vs VYM -58.8%.
Should I hold both NIE and VYM?
NIE and VYM have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NIE and VYM?
NIE and VYM share 40 common holdings with a 18.5% weight overlap. Combined, they hold 724 unique securities.
Which pays a higher dividend, NIE or VYM?
NIE yields 8.99% while VYM yields 2.24%, so NIE currently pays the higher dividend yield.
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