NXG vs VYM
NXG NextGen Infrastructure Income Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. NXG delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | NXG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 3.15% | 0.04% | |
| AUM | $482M | $81.6B | |
| Dividend Yield | 11.68% | 2.24% | |
| Holdings | 65 | 616 | |
| YTD Return | +20.11% | +14.66% | |
| 1Y Return | +39.71% | +22.16% | |
| 3Y Return (annualized) | +35.81% | +18.72% | |
| 5Y Return (annualized) | +18.21% | +12.18% | |
| Volatility (annualized) | 29.3% | 14.6% | |
| Max Drawdown | -86.5% | -58.8% | |
| Fund Family | The Cushing Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 26, 2012 | Nov 10, 2006 |
NXG vs VYM Performance
NXG NextGen Infrastructure Income Fund (NXG) is a ETF from The Cushing Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year NXG returned +39.71% while VYM returned +22.16%. Year to date, NXG is up 20.11% versus a gain of 14.66% for VYM.
Over three years, NXG compounded at +35.81% per year against +18.72% for VYM; over five years the annualized figures are +18.21% and +12.18% respectively. Across the full 14-year window we track, VYM has the edge at +7.01% annualized vs +0.21%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
NXG has been the more volatile fund, with annualized monthly volatility of 29.3% 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 -86.5% for NXG 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
NXG charges 3.15% per year while VYM charges 0.04%. On a $10,000 position that is $315 vs $4 annually, a gap of $311 per year that compounds over a long holding period. On income, NXG currently yields 11.68% against 2.24% for VYM.
Holdings Overlap
NXG and VYM share 15 holdings out of 641 unique holdings combined, representing a 3.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, NXG or VYM?
NXG has an expense ratio of 3.15% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $311 per year of difference.
Which performed better, NXG or VYM?
Over the past year NXG returned +39.71% vs +22.16% for VYM, so NXG leads on 1-year performance. Over the longest common window we track (14 years), NXG annualized +0.21% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, NXG or VYM?
NXG has been the more volatile fund at 29.3% annualized versus 14.6% for VYM. Worst drawdown: NXG -86.5% vs VYM -58.8%.
Should I hold both NXG and VYM?
NXG and VYM have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NXG and VYM?
NXG and VYM share 15 common holdings with a 3.8% weight overlap. Combined, they hold 641 unique securities.
Which pays a higher dividend, NXG or VYM?
NXG yields 11.68% while VYM yields 2.24%, so NXG currently pays the higher dividend yield.
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