NPFD vs VYM
Nuveen Variable Rate Preferred & 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 | NPFD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.83% | 0.04% | |
| AUM | - | $79.0B | |
| Dividend Yield | 9.84% | 2.86% | |
| Holdings | 189 | 568 | |
| YTD Return | +2.69% | +15.80% | |
| 1Y Return | +4.40% | +26.12% | |
| 3Y Return (annualized) | +14.64% | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 16.4% | 14.6% | |
| Max Drawdown | -39.2% | -58.8% | |
| Fund Family | Nuveen | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Dec 15, 2021 | Nov 10, 2006 |
NPFD vs VYM Performance
Nuveen Variable Rate Preferred & Income Fund (NPFD) is a ETF from Nuveen and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year NPFD returned +4.40% while VYM returned +26.12%. Year to date, NPFD is up 2.69% versus a gain of 15.80% for VYM.
Over three years, NPFD compounded at +14.64% per year against +18.25% for VYM. Across the full 5-year window we track, VYM has the edge at +7.07% annualized vs +2.12%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
NPFD has been the more volatile fund, with annualized monthly volatility of 16.4% compared with 14.6% for VYM. 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 -39.2% for NPFD 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NPFD charges 0.83% per year while VYM charges 0.04%. On a $10,000 position that is $83 vs $4 annually, a gap of $79 per year that compounds over a long holding period. On income, NPFD currently yields 9.84% against 2.86% for VYM.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, NPFD or VYM?
NPFD has an expense ratio of 0.83% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $79 per year of difference.
Which performed better, NPFD or VYM?
Over the past year NPFD returned +4.40% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), NPFD annualized +2.12% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, NPFD or VYM?
NPFD has been the more volatile fund at 16.4% annualized versus 14.6% for VYM. Worst drawdown: NPFD -39.2% vs VYM -58.8%.
Should I hold both NPFD and VYM?
NPFD and VYM have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NPFD and VYM?
NPFD and VYM share 2 common holdings with a 0.9% weight overlap. Combined, they hold 706 unique securities.
Which pays a higher dividend, NPFD or VYM?
NPFD yields 9.84% while VYM yields 2.86%, so NPFD currently pays the higher dividend yield.
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