NKX vs VYM

NKX vs VYM

Which is better, NKX or VYM?

Municipal California against Large Cap Value.

VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.

Lower Fees: VYMHigher Returns: VYM

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricNKXVYM
Expense Ratio4.02%0.04%Best
AUM$614M$83.1B
Dividend Yield7.75%2.22%
Holdings220608
YTD Return-10.58%+9.22%Best
1Y Return-11.17%+12.81%Best
3Y Return (annualized)+8.69%+18.21%Best
5Y Return (annualized)-2.89%+11.39%Best
Volatility (annualized)14.1%Best14.6%
Max Drawdown-48.0%Best-58.8%
$10,000 over 5 years$8,636$17,149Best
Fund FamilyNuveenVanguard (US)
CategoryTax PreferredEquity
StyleMunicipal CaliforniaLarge Cap Value
InceptionNov 22, 2002Nov 10, 2006

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Nov 17, 2006 to Oct 1, 2026 (19.9 years).

NKX vs VYM growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 19.9 years both funds cover.

NKX vs VYM Performance

Nuveen California AMT-Free Quality Municipal Income Fund (NKX) is an ETF from Nuveen and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year NKX returned -11.17% while VYM returned +12.81%. Year to date, NKX is down 10.58% versus a gain of 9.22% for VYM.

Over three years, NKX compounded at +8.69% per year against +18.21% for VYM; over five years the annualized figures are -2.89% and +11.39% respectively. Across the full 20-year window we track, VYM has the edge at +6.70% annualized vs +0.04%.

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 14.1% 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 -48.0% for NKX and -58.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.26. They move largely independently of each other.

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 7.75% against 2.22% for VYM.

Holdings Overlap

We hold position weights for 92 holdings in NKX and 557 in VYM, totalling 41.0% and 99.2% of the two funds. The two books name no position in common, so there is no overlap percentage to show.

0 positions in common, counted across the 92 positions we hold weights for in NKX and 557 in VYM, against full books of 220 and 608.

You are not choosing between two funds in isolation.

Whichever of NKX and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

NKXVYM

Free for up to 10 holdings. No account needed.

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, by $398 a year on a $10,000 investment.

Which performed better, NKX or VYM?

Over the past year NKX returned -11.17% vs +12.81% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), NKX annualized +0.04% vs +6.70% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, NKX or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 14.1% for NKX. Worst drawdown: NKX -48.0% vs VYM -58.8%.

Should I hold both NKX and VYM?

NKX and VYM have a monthly-return correlation of 0.26, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, NKX or VYM?

NKX yields 7.75% while VYM yields 2.22%, so NKX currently pays the higher dividend yield.

Is VYM better than NKX?

VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.