NUW vs VYM
Nuveen AMT-Free Municipal Value 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 | NUW | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.68% | 0.04% | |
| AUM | - | $79.0B | |
| Dividend Yield | 3.86% | 2.86% | |
| Holdings | 225 | 568 | |
| YTD Return | -0.32% | +16.10% | |
| 1Y Return | +5.91% | +25.99% | |
| 3Y Return (annualized) | +4.80% | +18.29% | |
| 5Y Return (annualized) | -0.22% | +12.35% | |
| Volatility (annualized) | 9.7% | 14.6% | |
| Max Drawdown | -32.9% | -58.8% | |
| Fund Family | Nuveen | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Feb 25, 2009 | Nov 10, 2006 |
NUW vs VYM Performance
Nuveen AMT-Free Municipal Value Fund (NUW) is a ETF from Nuveen and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year NUW returned +5.91% while VYM returned +25.99%. Year to date, NUW is down 0.32% versus a gain of 16.10% for VYM.
Over three years, NUW compounded at +4.80% per year against +18.29% for VYM; over five years the annualized figures are -0.22% and +12.35% respectively. Across the full 18-year window we track, VYM has the edge at +7.08% annualized vs +0.78%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 9.7% for NUW. 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 -32.9% for NUW 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 0.11. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NUW charges 0.68% per year while VYM charges 0.04%. On a $10,000 position that is $68 vs $4 annually, a gap of $64 per year that compounds over a long holding period. On income, NUW currently yields 3.86% against 2.86% for VYM.
Holdings Overlap
NUW and VYM share 0 holdings out of 655 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, NUW or VYM?
NUW has an expense ratio of 0.68% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $64 per year of difference.
Which performed better, NUW or VYM?
Over the past year NUW returned +5.91% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (18 years), NUW annualized +0.78% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, NUW or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 9.7% for NUW. Worst drawdown: NUW -32.9% vs VYM -58.8%.
Should I hold both NUW and VYM?
NUW and VYM have a monthly-return correlation of 0.11, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NUW and VYM?
NUW and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 655 unique securities.
Which pays a higher dividend, NUW or VYM?
NUW yields 3.86% while VYM yields 2.86%, so NUW currently pays the higher dividend yield.
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