NMZ vs VTI

Quick Verdict

VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: VTIHigher Returns: VTIMore Diversified: VTI

Side-by-Side Comparison

MetricNMZVTIWinner
Expense Ratio3.75%0.03%
AUM-$663.5B
Dividend Yield7.49%1.07%
Holdings8933,543
YTD Return+5.42%+14.20%
1Y Return+10.50%+24.16%
3Y Return (annualized)+6.76%+21.12%
5Y Return (annualized)-1.81%+12.37%
Volatility (annualized)14.1%15.3%
Max Drawdown-63.5%-56.6%
Fund FamilyNuveenVanguard (US)
CategoryTax PreferredEquity
InceptionNov 19, 2003May 24, 2001

NMZ vs VTI Performance

Nuveen Municipal High Income Opportunity Fund (NMZ) is a ETF from Nuveen and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year NMZ returned +10.50% while VTI returned +24.16%. Year to date, NMZ is up 5.42% versus a gain of 14.20% for VTI.

Over three years, NMZ compounded at +6.76% per year against +21.12% for VTI; over five years the annualized figures are -1.81% and +12.37% respectively. Across the full 23-year window we track, VTI has the edge at +8.14% annualized vs -0.23%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.6% for VTI. 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

NMZ charges 3.75% per year while VTI 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 1.07% for VTI.

Holdings Overlap

0.0%overlap

NMZ and VTI share 0 holdings out of 3018 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 VTI?

NMZ has an expense ratio of 3.75% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $372 per year of difference.

Which performed better, NMZ or VTI?

Over the past year NMZ returned +10.50% vs +24.16% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (23 years), NMZ annualized -0.23% vs +8.14% for VTI. Past performance does not guarantee future results.

Which is riskier, NMZ or VTI?

VTI has been the more volatile fund at 15.3% annualized versus 14.1% for NMZ. Worst drawdown: NMZ -63.5% vs VTI -56.6%.

Should I hold both NMZ and VTI?

NMZ and VTI have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between NMZ and VTI?

NMZ and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3018 unique securities.

Which pays a higher dividend, NMZ or VTI?

NMZ yields 7.49% while VTI yields 1.07%, so NMZ currently pays the higher dividend yield.

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