NPFI vs VYM
Nuveen Preferred and Income ETF 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 | NPFI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.56% | 0.04% | |
| AUM | $171M | $79.0B | |
| Dividend Yield | 6.38% | 2.86% | |
| Holdings | 154 | 568 | |
| YTD Return | +1.63% | +16.16% | |
| 1Y Return | +5.03% | +26.05% | |
| 3Y Return (annualized) | - | +18.43% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 3.3% | 14.6% | |
| Max Drawdown | -3.2% | -58.8% | |
| Fund Family | Nuveen | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Mar 5, 2024 | Nov 10, 2006 |
NPFI vs VYM Performance
Nuveen Preferred and Income ETF (NPFI) is a ETF from Nuveen and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year NPFI returned +5.03% while VYM returned +26.05%. Year to date, NPFI is up 1.63% versus a gain of 16.16% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 3.3% for NPFI. 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 -3.2% for NPFI 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
NPFI charges 0.56% per year while VYM charges 0.04%. On a $10,000 position that is $56 vs $4 annually, a gap of $52 per year that compounds over a long holding period. On income, NPFI currently yields 6.38% against 2.86% for VYM.
Holdings Overlap
NPFI and VYM share 1 holdings out of 675 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in NPFI | Weight in VYM | Difference |
|---|---|---|---|
| C | 0.32% | 0.81% | 0.49% |
Frequently Asked Questions
Which is cheaper, NPFI or VYM?
NPFI has an expense ratio of 0.56% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $52 per year of difference.
Which performed better, NPFI or VYM?
Over the past year NPFI returned +5.03% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), NPFI annualized +7.48% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, NPFI or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 3.3% for NPFI. Worst drawdown: NPFI -3.2% vs VYM -58.8%.
Should I hold both NPFI and VYM?
NPFI and VYM have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NPFI and VYM?
NPFI and VYM share 1 common holdings with a 0.3% weight overlap. Combined, they hold 675 unique securities.
Which pays a higher dividend, NPFI or VYM?
NPFI yields 6.38% while VYM yields 2.86%, so NPFI currently pays the higher dividend yield.
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