NUW vs VYM
Nuveen AMT-Free Municipal Value Fund vs Vanguard High Dividend Yield ETF
Which is better, NUW or VYM?
Municipal Bond against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | NUW | VYM |
|---|---|---|
| Expense Ratio | 0.68% | 0.04%Best |
| AUM | - | $81.6B |
| Dividend Yield | 3.96% | 2.22% |
| Holdings | 225 | 613 |
| YTD Return | -6.15% | +10.23%Best |
| 1Y Return | -3.23% | +14.28%Best |
| 3Y Return (annualized) | +4.27% | +17.50%Best |
| 5Y Return (annualized) | -1.49% | +11.60%Best |
| Volatility (annualized) | 9.8%Best | 13.5% |
| Max Drawdown | -32.9%Best | -35.7% |
| $10,000 over 5 years | $9,277 | $17,311Best |
| Fund Family | Nuveen | Vanguard (US) |
| Category | Tax Preferred | Equity |
| Style | Municipal Bond | Large Cap Value |
| Inception | Feb 25, 2009 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Feb 25, 2009 to Sep 23, 2026 (17.6 years).
NUW vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
NUW vs VYM Performance
Nuveen AMT-Free Municipal Value Fund (NUW) is an ETF from Nuveen and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year NUW returned -3.23% while VYM returned +14.28%. Year to date, NUW is down 6.15% versus a gain of 10.23% for VYM.
Over three years, NUW compounded at +4.27% per year against +17.50% for VYM; over five years the annualized figures are -1.49% and +11.60% respectively. Across the full 18-year window we track, VYM has the edge at +11.75% annualized vs +0.43%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 13.5% compared with 9.8% 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 -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.12. They move largely independently of each other.
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 3.96% against 2.22% for VYM.
Holdings Overlap
We hold position weights for 1 holding in NUW and 557 in VYM, totalling 0.5% and 99.2% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 61 days apart, NUW as of May 31, 2026 and VYM as of Jul 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 1 positions we hold weights for in NUW and 557 in VYM, against full books of 225 and 613.
You are not choosing between two funds in isolation.
Whichever of NUW and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $64 a year on a $10,000 investment.
Which performed better, NUW or VYM?
Over the past year NUW returned -3.23% vs +14.28% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (18 years), NUW annualized +0.43% vs +11.75% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, NUW or VYM?
VYM has been the more volatile fund at 13.5% annualized versus 9.8% for NUW. Worst drawdown: NUW -32.9% vs VYM -35.7%.
Should I hold both NUW and VYM?
NUW and VYM have a monthly-return correlation of 0.12, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, NUW or VYM?
NUW yields 3.96% while VYM yields 2.22%, so NUW currently pays the higher dividend yield.
Is VYM better than NUW?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.