NZF vs VOO
Nuveen Municipal Credit Income Fund vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. NZF offers more diversification with 671 holdings.
Side-by-Side Comparison
| Metric | NZF | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 3.61% | 0.03% | |
| AUM | - | $979.0B | |
| Dividend Yield | 7.54% | 1.09% | |
| Holdings | 671 | 509 | |
| YTD Return | +2.93% | +14.48% | |
| 1Y Return | +11.85% | +22.02% | |
| 3Y Return (annualized) | +10.22% | +21.80% | |
| 5Y Return (annualized) | -0.51% | +13.36% | |
| Volatility (annualized) | 13.0% | 14.2% | |
| Max Drawdown | -53.7% | -34.3% | |
| Fund Family | Nuveen | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Sep 25, 2001 | Sep 7, 2010 |
NZF vs VOO Performance
Nuveen Municipal Credit Income Fund (NZF) is a ETF from Nuveen and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year NZF returned +11.85% while VOO returned +22.02%. Year to date, NZF is up 2.93% versus a gain of 14.48% for VOO.
Over three years, NZF compounded at +10.22% per year against +21.80% for VOO; over five years the annualized figures are -0.51% and +13.36% respectively. Across the full 16-year window we track, VOO has the edge at +13.61% annualized vs +0.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.2% compared with 13.0% for NZF. 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 -53.7% for NZF and -34.3% for VOO. 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NZF charges 3.61% per year while VOO charges 0.03%. On a $10,000 position that is $361 vs $3 annually, a gap of $358 per year that compounds over a long holding period. On income, NZF currently yields 7.54% against 1.09% for VOO.
Holdings Overlap
NZF and VOO share 0 holdings out of 759 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, NZF or VOO?
NZF has an expense ratio of 3.61% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $358 per year of difference.
Which performed better, NZF or VOO?
Over the past year NZF returned +11.85% vs +22.02% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), NZF annualized +0.58% vs +13.61% for VOO. Past performance does not guarantee future results.
Which is riskier, NZF or VOO?
VOO has been the more volatile fund at 14.2% annualized versus 13.0% for NZF. Worst drawdown: NZF -53.7% vs VOO -34.3%.
Should I hold both NZF and VOO?
NZF and VOO have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NZF and VOO?
NZF and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 759 unique securities.
Which pays a higher dividend, NZF or VOO?
NZF yields 7.54% while VOO yields 1.09%, so NZF currently pays the higher dividend yield.
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