NVG vs VYM
Nuveen AMT-Free Municipal Credit 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 | NVG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 3.64% | 0.04% | |
| AUM | - | $79.0B | |
| Dividend Yield | 7.41% | 2.86% | |
| Holdings | 1,103 | 568 | |
| YTD Return | +2.43% | +16.16% | |
| 1Y Return | +13.17% | +26.05% | |
| 3Y Return (annualized) | +10.19% | +18.43% | |
| 5Y Return (annualized) | -1.06% | +12.21% | |
| Volatility (annualized) | 12.5% | 14.6% | |
| Max Drawdown | -47.8% | -58.8% | |
| Fund Family | Nuveen | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Mar 25, 2002 | Nov 10, 2006 |
NVG vs VYM Performance
Nuveen AMT-Free Municipal Credit Income Fund (NVG) is a ETF from Nuveen and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year NVG returned +13.17% while VYM returned +26.05%. Year to date, NVG is up 2.43% versus a gain of 16.16% for VYM.
Over three years, NVG compounded at +10.19% per year against +18.43% for VYM; over five years the annualized figures are -1.06% and +12.21% respectively. Across the full 20-year window we track, VYM has the edge at +7.09% annualized vs +0.59%. 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 12.5% for NVG. 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 -47.8% for NVG 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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NVG charges 3.64% per year while VYM charges 0.04%. On a $10,000 position that is $364 vs $4 annually, a gap of $360 per year that compounds over a long holding period. On income, NVG currently yields 7.41% against 2.86% for VYM.
Holdings Overlap
NVG and VYM share 0 holdings out of 912 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, NVG or VYM?
NVG has an expense ratio of 3.64% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $360 per year of difference.
Which performed better, NVG or VYM?
Over the past year NVG returned +13.17% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), NVG annualized +0.59% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, NVG or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 12.5% for NVG. Worst drawdown: NVG -47.8% vs VYM -58.8%.
Should I hold both NVG and VYM?
NVG and VYM have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NVG and VYM?
NVG and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 912 unique securities.
Which pays a higher dividend, NVG or VYM?
NVG yields 7.41% while VYM yields 2.86%, so NVG currently pays the higher dividend yield.
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