NMI vs VYM
Nuveen Municipal Income Fund Inc. vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | NMI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.73% | 0.04% | |
| AUM | - | $79.0B | |
| Dividend Yield | 4.57% | 2.86% | |
| Holdings | 220 | 568 | |
| YTD Return | +10.80% | +16.10% | |
| 1Y Return | +14.54% | +25.99% | |
| 3Y Return (annualized) | +9.97% | +18.29% | |
| 5Y Return (annualized) | +2.14% | +12.35% | |
| Volatility (annualized) | 11.0% | 14.6% | |
| Max Drawdown | -34.4% | -58.8% | |
| Fund Family | Nuveen | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Apr 20, 1988 | Nov 10, 2006 |
NMI vs VYM Performance
Nuveen Municipal Income Fund Inc. (NMI) is a ETF from Nuveen and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year NMI returned +14.54% while VYM returned +25.99%. Year to date, NMI is up 10.80% versus a gain of 16.10% for VYM.
Over three years, NMI compounded at +9.97% per year against +18.29% for VYM; over five years the annualized figures are +2.14% and +12.35% respectively. Across the full 20-year window we track, VYM has the edge at +7.08% annualized vs +0.37%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -58.8% for VYM. 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 0.05. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NMI charges 0.73% per year while VYM charges 0.04%. On a $10,000 position that is $73 vs $4 annually, a gap of $69 per year that compounds over a long holding period. On income, NMI currently yields 4.57% against 2.86% for VYM.
Holdings Overlap
NMI and VYM share 0 holdings out of 653 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 VYM?
NMI has an expense ratio of 0.73% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $69 per year of difference.
Which performed better, NMI or VYM?
Over the past year NMI returned +14.54% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), NMI annualized +0.37% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, NMI or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 11.0% for NMI. Worst drawdown: NMI -34.4% vs VYM -58.8%.
Should I hold both NMI and VYM?
NMI and VYM have a monthly-return correlation of 0.05, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NMI and VYM?
NMI and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 653 unique securities.
Which pays a higher dividend, NMI or VYM?
NMI yields 4.57% while VYM yields 2.86%, so NMI currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.