NMI vs VOO
Nuveen Municipal Income Fund Inc. 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 | NMI | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.73% | 0.03% | |
| AUM | - | $979.0B | |
| Dividend Yield | 4.57% | 1.09% | |
| Holdings | 220 | 509 | |
| YTD Return | +10.41% | +13.44% | |
| 1Y Return | +14.14% | +22.62% | |
| 3Y Return (annualized) | +9.57% | +21.47% | |
| 5Y Return (annualized) | +1.91% | +13.27% | |
| Volatility (annualized) | 11.0% | 14.1% | |
| Max Drawdown | -34.4% | -34.3% | |
| Fund Family | Nuveen | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Apr 20, 1988 | Sep 7, 2010 |
NMI vs VOO Performance
Nuveen Municipal Income Fund Inc. (NMI) is a ETF from Nuveen and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year NMI returned +14.14% while VOO returned +22.62%. Year to date, NMI is up 10.41% versus a gain of 13.44% for VOO.
Over three years, NMI compounded at +9.57% per year against +21.47% for VOO; over five years the annualized figures are +1.91% and +13.27% respectively. Across the full 16-year window we track, VOO has the edge at +13.55% annualized vs +0.36%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% 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 -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 0.08. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NMI charges 0.73% per year while VOO charges 0.03%. On a $10,000 position that is $73 vs $3 annually, a gap of $70 per year that compounds over a long holding period. On income, NMI currently yields 4.57% against 1.09% for VOO.
Holdings Overlap
NMI and VOO share 0 holdings out of 600 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 VOO?
NMI has an expense ratio of 0.73% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $70 per year of difference.
Which performed better, NMI or VOO?
Over the past year NMI returned +14.14% vs +22.62% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), NMI annualized +0.36% vs +13.55% for VOO. Past performance does not guarantee future results.
Which is riskier, NMI or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 11.0% for NMI. Worst drawdown: NMI -34.4% vs VOO -34.3%.
Should I hold both NMI and VOO?
NMI and VOO have a monthly-return correlation of 0.08, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NMI and VOO?
NMI and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 600 unique securities.
Which pays a higher dividend, NMI or VOO?
NMI yields 4.57% while VOO yields 1.09%, so NMI currently pays the higher dividend yield.
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