NMCO vs VTI

Quick Verdict

VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: VTIHigher Returns: VTIMore Diversified: VTI

Side-by-Side Comparison

MetricNMCOVTIWinner
Expense Ratio4.50%0.03%
AUM-$663.5B
Dividend Yield7.60%1.07%
Holdings4303,543
YTD Return+7.53%+14.20%
1Y Return+12.13%+24.16%
3Y Return (annualized)+4.91%+21.12%
5Y Return (annualized)-1.71%+12.37%
Volatility (annualized)20.2%15.3%
Max Drawdown-43.0%-56.6%
Fund FamilyNuveenVanguard (US)
CategoryFixed IncomeEquity
InceptionSep 16, 2019May 24, 2001

NMCO vs VTI Performance

Nuveen Municipal Credit Opportunities Fund (NMCO) is a ETF from Nuveen and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year NMCO returned +12.13% while VTI returned +24.16%. Year to date, NMCO is up 7.53% versus a gain of 14.20% for VTI.

Over three years, NMCO compounded at +4.91% per year against +21.12% for VTI; over five years the annualized figures are -1.71% and +12.37% respectively. Across the full 7-year window we track, VTI has the edge at +8.14% 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 15.3% for VTI. 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 -56.6% for VTI. 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 VTI 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 1.07% for VTI.

Holdings Overlap

0.0%overlap

NMCO and VTI share 0 holdings out of 2938 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 VTI?

NMCO has an expense ratio of 4.50% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $447 per year of difference.

Which performed better, NMCO or VTI?

Over the past year NMCO returned +12.13% vs +24.16% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (7 years), NMCO annualized -0.38% vs +8.14% for VTI. Past performance does not guarantee future results.

Which is riskier, NMCO or VTI?

NMCO has been the more volatile fund at 20.2% annualized versus 15.3% for VTI. Worst drawdown: NMCO -43.0% vs VTI -56.6%.

Should I hold both NMCO and VTI?

NMCO and VTI 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 VTI?

NMCO and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2938 unique securities.

Which pays a higher dividend, NMCO or VTI?

NMCO yields 7.60% while VTI yields 1.07%, so NMCO currently pays the higher dividend yield.

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