NMI vs TYO

Quick Verdict

NMI has a lower expense ratio. NMI delivered stronger 1-year returns. NMI offers more diversification with 95 holdings.

Lower Fees: NMIHigher Returns: NMIMore Diversified: NMI

Side-by-Side Comparison

MetricNMITYOWinner
Expense Ratio0.73%1.00%
AUM-$12M
Dividend Yield4.57%2.62%
Holdings2206
YTD Return+10.41%+11.67%
1Y Return+14.14%+11.48%
3Y Return (annualized)+9.57%+4.90%
5Y Return (annualized)+1.91%+14.80%
Volatility (annualized)11.0%19.3%
Max Drawdown-34.4%-90.4%
Fund FamilyNuveenDirexion Shares ETF Trust
CategoryTax PreferredAlternative
InceptionApr 20, 1988Apr 16, 2009

NMI vs TYO Performance

Nuveen Municipal Income Fund Inc. (NMI) is a ETF from Nuveen and Direxion Daily 7-10 Year Treasury Bear 3X ETF (TYO) is a ETF from Direxion Shares ETF Trust. Over the past year NMI returned +14.14% while TYO returned +11.48%. Year to date, NMI is up 10.41% versus a gain of 11.67% for TYO.

Over three years, NMI compounded at +9.57% per year against +4.90% for TYO; over five years the annualized figures are +1.91% and +14.80% respectively. Across the full 17-year window we track, NMI has the edge at +0.36% annualized vs -7.21%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

TYO has been the more volatile fund, with annualized monthly volatility of 19.3% compared with 11.0% for NMI. 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 -34.4% for NMI and -90.4% for TYO. 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 -0.45. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

NMI charges 0.73% per year while TYO charges 1.00%. On a $10,000 position that is $73 vs $100 annually, a gap of $27 per year that compounds over a long holding period. On income, NMI currently yields 4.57% against 2.62% for TYO.

Holdings Overlap

0.0%overlap

NMI and TYO share 0 holdings out of 98 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, NMI or TYO?

NMI has an expense ratio of 0.73% while TYO charges 1.00%. NMI is the cheaper option. On a $10,000 investment, that is $27 per year of difference.

Which performed better, NMI or TYO?

Over the past year NMI returned +14.14% vs +11.48% for TYO, so NMI leads on 1-year performance. Over the longest common window we track (17 years), NMI annualized +0.36% vs -7.21% for TYO. Past performance does not guarantee future results.

Which is riskier, NMI or TYO?

TYO has been the more volatile fund at 19.3% annualized versus 11.0% for NMI. Worst drawdown: NMI -34.4% vs TYO -90.4%.

Should I hold both NMI and TYO?

NMI and TYO have a monthly-return correlation of -0.45, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between NMI and TYO?

NMI and TYO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 98 unique securities.

Which pays a higher dividend, NMI or TYO?

NMI yields 4.57% while TYO yields 2.62%, so NMI currently pays the higher dividend yield.

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