NXP vs VYM
Nuveen Select Tax Free Income Portfolio 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 | NXP | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.24% | 0.04% | |
| AUM | - | $79.0B | |
| Dividend Yield | 4.44% | 2.86% | |
| Holdings | 433 | 568 | |
| YTD Return | +3.74% | +16.10% | |
| 1Y Return | +5.92% | +25.99% | |
| 3Y Return (annualized) | +4.32% | +18.29% | |
| 5Y Return (annualized) | -0.07% | +12.35% | |
| Volatility (annualized) | 8.9% | 14.6% | |
| Max Drawdown | -30.0% | -58.8% | |
| Fund Family | Nuveen | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Mar 19, 1992 | Nov 10, 2006 |
NXP vs VYM Performance
Nuveen Select Tax Free Income Portfolio (NXP) is a ETF from Nuveen and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year NXP returned +5.92% while VYM returned +25.99%. Year to date, NXP is up 3.74% versus a gain of 16.10% for VYM.
Over three years, NXP compounded at +4.32% per year against +18.29% for VYM; over five years the annualized figures are -0.07% and +12.35% respectively. Across the full 20-year window we track, VYM has the edge at +7.08% annualized vs +0.52%. 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 8.9% for NXP. 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 -30.0% for NXP 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 0.22. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NXP charges 0.24% per year while VYM charges 0.04%. On a $10,000 position that is $24 vs $4 annually, a gap of $20 per year that compounds over a long holding period. On income, NXP currently yields 4.44% against 2.86% for VYM.
Holdings Overlap
NXP and VYM share 0 holdings out of 754 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, NXP or VYM?
NXP has an expense ratio of 0.24% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $20 per year of difference.
Which performed better, NXP or VYM?
Over the past year NXP returned +5.92% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), NXP annualized +0.52% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, NXP or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 8.9% for NXP. Worst drawdown: NXP -30.0% vs VYM -58.8%.
Should I hold both NXP and VYM?
NXP and VYM have a monthly-return correlation of 0.22, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NXP and VYM?
NXP and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 754 unique securities.
Which pays a higher dividend, NXP or VYM?
NXP yields 4.44% while VYM yields 2.86%, so NXP currently pays the higher dividend yield.
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