NMCO vs VOO
NMCO vs VOO
Nuveen Municipal Credit Opportunities Fund vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | NMCO | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 4.50% | 0.03% | |
| AUM | - | $979.0B | |
| Dividend Yield | 7.60% | 1.09% | |
| Holdings | 430 | 509 | |
| YTD Return | +7.53% | +13.80% | |
| 1Y Return | +12.13% | +23.71% | |
| 3Y Return (annualized) | +4.91% | +21.50% | |
| 5Y Return (annualized) | -1.71% | +13.44% | |
| Volatility (annualized) | 20.2% | 14.1% | |
| Max Drawdown | -43.0% | -34.3% | |
| Fund Family | Nuveen | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 16, 2019 | Sep 7, 2010 |
NMCO vs VOO Performance
Nuveen Municipal Credit Opportunities Fund (NMCO) is a ETF from Nuveen and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year NMCO returned +12.13% while VOO returned +23.71%. Year to date, NMCO is up 7.53% versus a gain of 13.80% for VOO.
Over three years, NMCO compounded at +4.91% per year against +21.50% for VOO; over five years the annualized figures are -1.71% and +13.44% respectively. Across the full 7-year window we track, VOO has the edge at +13.58% annualized vs -0.38%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
NMCO has been the more volatile fund, with annualized monthly volatility of 20.2% compared with 14.1% for VOO. 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 -43.0% for NMCO and -34.3% for VOO. 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NMCO charges 4.50% per year while VOO charges 0.03%. On a $10,000 position that is $450 vs $3 annually, a gap of $447 per year that compounds over a long holding period. On income, NMCO currently yields 7.60% against 1.09% for VOO.
Holdings Overlap
NMCO and VOO share 0 holdings out of 660 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, NMCO or VOO?
NMCO has an expense ratio of 4.50% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $447 per year of difference.
Which performed better, NMCO or VOO?
Over the past year NMCO returned +12.13% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (7 years), NMCO annualized -0.38% vs +13.58% for VOO. Past performance does not guarantee future results.
Which is riskier, NMCO or VOO?
NMCO has been the more volatile fund at 20.2% annualized versus 14.1% for VOO. Worst drawdown: NMCO -43.0% vs VOO -34.3%.
Should I hold both NMCO and VOO?
NMCO and VOO have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NMCO and VOO?
NMCO and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 660 unique securities.
Which pays a higher dividend, NMCO or VOO?
NMCO yields 7.60% while VOO yields 1.09%, so NMCO currently pays the higher dividend yield.
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