NMS vs VYM

Quick Verdict

VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: TiedHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricNMSVYMWinner
Expense Ratio-0.04%
AUM-$79.0B
Dividend Yield6.79%2.86%
Holdings145568
YTD Return+2.62%+15.80%
1Y Return+9.07%+26.12%
3Y Return (annualized)+8.84%+18.25%
5Y Return (annualized)-0.68%+12.51%
Volatility (annualized)13.3%14.6%
Max Drawdown-41.8%-58.8%
Fund FamilyNuveenVanguard (US)
CategoryTax PreferredEquity
InceptionJun 25, 1993Nov 10, 2006

NMS vs VYM Performance

Nuveen Minnesota Quality Municipal Income Fund (NMS) is a ETF from Nuveen and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year NMS returned +9.07% while VYM returned +26.12%. Year to date, NMS is up 2.62% versus a gain of 15.80% for VYM.

Over three years, NMS compounded at +8.84% per year against +18.25% for VYM; over five years the annualized figures are -0.68% and +12.51% respectively. Across the full 12-year window we track, VYM has the edge at +7.07% annualized vs +0.28%. 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 13.3% for NMS. 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 -41.8% for NMS 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 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.

Holdings Overlap

0.0%overlap

NMS and VYM share 0 holdings out of 573 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which performed better, NMS or VYM?

Over the past year NMS returned +9.07% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (12 years), NMS annualized +0.28% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, NMS or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 13.3% for NMS. Worst drawdown: NMS -41.8% vs VYM -58.8%.

Should I hold both NMS and VYM?

NMS and VYM 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 NMS and VYM?

NMS and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 573 unique securities.

Which pays a higher dividend, NMS or VYM?

NMS yields 6.79% while VYM yields 2.86%, so NMS currently pays the higher dividend yield.

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