PMM vs VYM
Putnam Managed Municipal Income Trust vs Vanguard High Dividend Yield ETF
Which is better, PMM 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 | PMM | VYM |
|---|---|---|
| Expense Ratio | 0.98% | 0.04%Best |
| AUM | $2,812.2 | $81.6B |
| Dividend Yield | 5.21% | 2.22% |
| Holdings | 396 | 613 |
| YTD Return | -5.61% | +10.23%Best |
| 1Y Return | -2.97% | +14.28%Best |
| 3Y Return (annualized) | +6.03% | +17.50%Best |
| 5Y Return (annualized) | -3.53% | +11.60%Best |
| Volatility (annualized) | 13.2%Best | 14.6% |
| Max Drawdown | -44.2%Best | -58.8% |
| $10,000 over 5 years | $8,355 | $17,311Best |
| Fund Family | Putnam Investments | Vanguard (US) |
| Category | Tax Preferred | Equity |
| Style | Municipal Bond | Large Cap Value |
| Inception | Feb 24, 1989 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 23, 2026 (19.9 years).
PMM 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 covers the 19.9 years both funds cover.
PMM vs VYM Performance
Putnam Managed Municipal Income Trust (PMM) is an ETF from Putnam Investments and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year PMM returned -2.97% while VYM returned +14.28%. Year to date, PMM is down 5.61% versus a gain of 10.23% for VYM.
Over three years, PMM compounded at +6.03% per year against +17.50% for VYM; over five years the annualized figures are -3.53% and +11.60% respectively. Across the full 20-year window we track, VYM has the edge at +6.76% annualized vs -0.08%.
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 13.2% for PMM. 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 -44.2% for PMM and -58.8% 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 0.37. They move together some of the time, and apart the rest.
Fees and Cost Over Time
PMM charges 0.98% per year while VYM charges 0.04%. On a $10,000 position that is $98 vs $4 annually, a gap of $94 per year that compounds over a long holding period. On income, PMM currently yields 5.21% against 2.22% for VYM.
Holdings Overlap
We hold position weights for 118 holdings in PMM and 557 in VYM, totalling 45.7% 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, PMM 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 118 positions we hold weights for in PMM and 557 in VYM, against full books of 396 and 613.
You are not choosing between two funds in isolation.
Whichever of PMM 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, PMM or VYM?
PMM has an expense ratio of 0.98% while VYM charges 0.04%. VYM is the cheaper option, by $94 a year on a $10,000 investment.
Which performed better, PMM or VYM?
Over the past year PMM returned -2.97% vs +14.28% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), PMM annualized -0.08% vs +6.76% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PMM or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.2% for PMM. Worst drawdown: PMM -44.2% vs VYM -58.8%.
Should I hold both PMM and VYM?
PMM and VYM have a monthly-return correlation of 0.37, 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, PMM or VYM?
PMM yields 5.21% while VYM yields 2.22%, so PMM currently pays the higher dividend yield.
Is VYM better than PMM?
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.