NMI vs VGI

Quick Verdict

NMI has a lower expense ratio. NMI delivered stronger 1-year returns. VGI offers more diversification with 434 holdings.

Lower Fees: NMIHigher Returns: NMIMore Diversified: VGI

Side-by-Side Comparison

MetricNMIVGIWinner
Expense Ratio0.73%1.74%
AUM-$88M
Dividend Yield4.57%11.98%
Holdings220646
YTD Return+10.41%+1.88%
1Y Return+14.14%+4.88%
3Y Return (annualized)+9.57%+11.30%
5Y Return (annualized)+1.91%+2.33%
Volatility (annualized)11.0%14.2%
Max Drawdown-34.4%-63.3%
Fund FamilyNuveenVirtus Investment Partners
CategoryTax PreferredFixed Income
InceptionApr 20, 1988Feb 23, 2012

NMI vs VGI Performance

Nuveen Municipal Income Fund Inc. (NMI) is a ETF from Nuveen and Virtus Global Multi-Sector Income Fund (VGI) is a ETF from Virtus Investment Partners. Over the past year NMI returned +14.14% while VGI returned +4.88%. Year to date, NMI is up 10.41% versus a gain of 1.88% for VGI.

Over three years, NMI compounded at +9.57% per year against +11.30% for VGI; over five years the annualized figures are +1.91% and +2.33% respectively. Across the full 15-year window we track, NMI has the edge at +0.36% annualized vs -2.35%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VGI has been the more volatile fund, with annualized monthly volatility of 14.2% 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 -63.3% for VGI. 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 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

NMI charges 0.73% per year while VGI charges 1.74%. On a $10,000 position that is $73 vs $174 annually, a gap of $101 per year that compounds over a long holding period. On income, NMI currently yields 4.57% against 11.98% for VGI.

Holdings Overlap

0.0%overlap

NMI and VGI share 0 holdings out of 529 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 VGI?

NMI has an expense ratio of 0.73% while VGI charges 1.74%. NMI is the cheaper option. On a $10,000 investment, that is $101 per year of difference.

Which performed better, NMI or VGI?

Over the past year NMI returned +14.14% vs +4.88% for VGI, so NMI leads on 1-year performance. Over the longest common window we track (15 years), NMI annualized +0.36% vs -2.35% for VGI. Past performance does not guarantee future results.

Which is riskier, NMI or VGI?

VGI has been the more volatile fund at 14.2% annualized versus 11.0% for NMI. Worst drawdown: NMI -34.4% vs VGI -63.3%.

Should I hold both NMI and VGI?

NMI and VGI have a monthly-return correlation of 0.31, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between NMI and VGI?

NMI and VGI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 529 unique securities.

Which pays a higher dividend, NMI or VGI?

NMI yields 4.57% while VGI yields 11.98%, so VGI currently pays the higher dividend yield.

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