NKX vs VYM
Nuveen California 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. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | NKX | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 4.02% | 0.04% | |
| AUM | - | $79.0B | |
| Dividend Yield | 7.49% | 2.86% | |
| Holdings | 214 | 568 | |
| YTD Return | +3.89% | +16.53% | |
| 1Y Return | +11.66% | +25.03% | |
| 3Y Return (annualized) | +10.21% | +18.54% | |
| 5Y Return (annualized) | +0.17% | +12.25% | |
| Volatility (annualized) | 13.5% | 14.6% | |
| Max Drawdown | -49.0% | -58.8% | |
| Fund Family | Nuveen | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 22, 2002 | Nov 10, 2006 |
NKX vs VYM Performance
Nuveen California AMT-Free Quality Municipal Income Fund (NKX) is a ETF from Nuveen and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year NKX returned +11.66% while VYM returned +25.03%. Year to date, NKX is up 3.89% versus a gain of 16.53% for VYM.
Over three years, NKX compounded at +10.21% per year against +18.54% for VYM; over five years the annualized figures are +0.17% and +12.25% respectively. Across the full 20-year window we track, VYM has the edge at +7.10% annualized vs +0.51%. 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 13.5% for NKX. 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 -49.0% for NKX 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 0.25. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NKX charges 4.02% per year while VYM charges 0.04%. On a $10,000 position that is $402 vs $4 annually, a gap of $398 per year that compounds over a long holding period. On income, NKX currently yields 7.49% against 2.86% for VYM.
Holdings Overlap
NKX and VYM share 0 holdings out of 659 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, NKX or VYM?
NKX has an expense ratio of 4.02% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $398 per year of difference.
Which performed better, NKX or VYM?
Over the past year NKX returned +11.66% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), NKX annualized +0.51% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, NKX or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.5% for NKX. Worst drawdown: NKX -49.0% vs VYM -58.8%.
Should I hold both NKX and VYM?
NKX and VYM have a monthly-return correlation of 0.25, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NKX and VYM?
NKX and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 659 unique securities.
Which pays a higher dividend, NKX or VYM?
NKX yields 7.49% while VYM yields 2.86%, so NKX currently pays the higher dividend yield.
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