NMZ vs VXUS
NMZ vs VXUS
Nuveen Municipal High Income Opportunity Fund vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | NMZ | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 3.75% | 0.05% | |
| AUM | - | $156.5B | |
| Dividend Yield | 7.49% | 2.60% | |
| Holdings | 893 | 8,747 | |
| YTD Return | +5.42% | +14.57% | |
| 1Y Return | +10.50% | +27.82% | |
| 3Y Return (annualized) | +6.76% | +19.27% | |
| 5Y Return (annualized) | -1.81% | +9.28% | |
| Volatility (annualized) | 14.1% | 15.1% | |
| Max Drawdown | -63.5% | -39.9% | |
| Fund Family | Nuveen | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 19, 2003 | Jan 26, 2011 |
NMZ vs VXUS Performance
Nuveen Municipal High Income Opportunity Fund (NMZ) is a ETF from Nuveen and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year NMZ returned +10.50% while VXUS returned +27.82%. Year to date, NMZ is up 5.42% versus a gain of 14.57% for VXUS.
Over three years, NMZ compounded at +6.76% per year against +19.27% for VXUS; over five years the annualized figures are -1.81% and +9.28% respectively. Across the full 16-year window we track, VXUS has the edge at +4.86% annualized vs -0.23%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -39.9% for VXUS. 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NMZ charges 3.75% per year while VXUS charges 0.05%. On a $10,000 position that is $375 vs $5 annually, a gap of $370 per year that compounds over a long holding period. On income, NMZ currently yields 7.49% against 2.60% for VXUS.
Holdings Overlap
NMZ and VXUS share 0 holdings out of 8096 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 VXUS?
NMZ has an expense ratio of 3.75% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $370 per year of difference.
Which performed better, NMZ or VXUS?
Over the past year NMZ returned +10.50% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), NMZ annualized -0.23% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, NMZ or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 14.1% for NMZ. Worst drawdown: NMZ -63.5% vs VXUS -39.9%.
Should I hold both NMZ and VXUS?
NMZ and VXUS have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NMZ and VXUS?
NMZ and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8096 unique securities.
Which pays a higher dividend, NMZ or VXUS?
NMZ yields 7.49% while VXUS yields 2.60%, so NMZ currently pays the higher dividend yield.
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