NMT vs VYM
Nuveen Massachusetts Quality Municipal Income Fund 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 | NMT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 3.90% | 0.04% | |
| AUM | - | $79.0B | |
| Dividend Yield | 6.89% | 2.86% | |
| Holdings | 114 | 568 | |
| YTD Return | +15.53% | +15.80% | |
| 1Y Return | +18.97% | +26.12% | |
| 3Y Return (annualized) | +13.41% | +18.25% | |
| 5Y Return (annualized) | +1.26% | +12.51% | |
| Volatility (annualized) | 11.7% | 14.6% | |
| Max Drawdown | -49.6% | -58.8% | |
| Fund Family | Nuveen | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Mar 18, 1993 | Nov 10, 2006 |
NMT vs VYM Performance
Nuveen Massachusetts Quality Municipal Income Fund (NMT) is a ETF from Nuveen and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year NMT returned +18.97% while VYM returned +26.12%. Year to date, NMT is up 15.53% versus a gain of 15.80% for VYM.
Over three years, NMT compounded at +13.41% per year against +18.25% for VYM; over five years the annualized figures are +1.26% and +12.51% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs +0.58%. 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 11.7% for NMT. 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 -49.6% for NMT 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 0.19. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NMT charges 3.90% per year while VYM charges 0.04%. On a $10,000 position that is $390 vs $4 annually, a gap of $386 per year that compounds over a long holding period. On income, NMT currently yields 6.89% against 2.86% for VYM.
Holdings Overlap
NMT and VYM share 0 holdings out of 586 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, NMT or VYM?
NMT has an expense ratio of 3.90% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $386 per year of difference.
Which performed better, NMT or VYM?
Over the past year NMT returned +18.97% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), NMT annualized +0.58% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, NMT or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 11.7% for NMT. Worst drawdown: NMT -49.6% vs VYM -58.8%.
Should I hold both NMT and VYM?
NMT and VYM have a monthly-return correlation of 0.19, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NMT and VYM?
NMT and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 586 unique securities.
Which pays a higher dividend, NMT or VYM?
NMT yields 6.89% while VYM yields 2.86%, so NMT currently pays the higher dividend yield.
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