NMZ vs VOO
NMZ vs VOO
Nuveen Municipal High Income Opportunity Fund 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 | NMZ | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 3.75% | 0.03% | |
| AUM | - | $979.0B | |
| Dividend Yield | 7.49% | 1.09% | |
| Holdings | 893 | 509 | |
| YTD Return | +5.42% | +13.80% | |
| 1Y Return | +10.50% | +23.71% | |
| 3Y Return (annualized) | +6.76% | +21.50% | |
| 5Y Return (annualized) | -1.81% | +13.44% | |
| Volatility (annualized) | 14.1% | 14.1% | |
| Max Drawdown | -63.5% | -34.3% | |
| Fund Family | Nuveen | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 19, 2003 | Sep 7, 2010 |
NMZ vs VOO Performance
Nuveen Municipal High Income Opportunity Fund (NMZ) is a ETF from Nuveen and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year NMZ returned +10.50% while VOO returned +23.71%. Year to date, NMZ is up 5.42% versus a gain of 13.80% for VOO.
Over three years, NMZ compounded at +6.76% per year against +21.50% for VOO; over five years the annualized figures are -1.81% and +13.44% respectively. Across the full 16-year window we track, VOO has the edge at +13.58% annualized vs -0.23%. 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 14.1% for NMZ. 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 -63.5% for NMZ 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NMZ charges 3.75% per year while VOO charges 0.03%. On a $10,000 position that is $375 vs $3 annually, a gap of $372 per year that compounds over a long holding period. On income, NMZ currently yields 7.49% against 1.09% for VOO.
Holdings Overlap
NMZ and VOO share 0 holdings out of 740 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, NMZ or VOO?
NMZ has an expense ratio of 3.75% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $372 per year of difference.
Which performed better, NMZ or VOO?
Over the past year NMZ returned +10.50% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), NMZ annualized -0.23% vs +13.58% for VOO. Past performance does not guarantee future results.
Which is riskier, NMZ or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 14.1% for NMZ. Worst drawdown: NMZ -63.5% vs VOO -34.3%.
Should I hold both NMZ and VOO?
NMZ and VOO have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NMZ and VOO?
NMZ and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 740 unique securities.
Which pays a higher dividend, NMZ or VOO?
NMZ yields 7.49% while VOO yields 1.09%, so NMZ currently pays the higher dividend yield.
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