RFMZ vs VYM
RiverNorth Flexible Municipal Income Fund II Inc 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 616 holdings.
Side-by-Side Comparison
| Metric | RFMZ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 4.27% | 0.04% | |
| AUM | $351M | $81.6B | |
| Dividend Yield | 6.94% | 2.24% | |
| Holdings | 126 | 616 | |
| YTD Return | +8.36% | +15.34% | |
| 1Y Return | +13.76% | +23.24% | |
| 3Y Return (annualized) | +6.67% | +19.22% | |
| 5Y Return (annualized) | -2.16% | +12.21% | |
| Volatility (annualized) | 15.1% | 14.6% | |
| Max Drawdown | -39.5% | -58.8% | |
| Fund Family | RiverNorth | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 24, 2021 | Nov 10, 2006 |
RFMZ vs VYM Performance
RiverNorth Flexible Municipal Income Fund II Inc (RFMZ) is a ETF from RiverNorth and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year RFMZ returned +13.76% while VYM returned +23.24%. Year to date, RFMZ is up 8.36% versus a gain of 15.34% for VYM.
Over three years, RFMZ compounded at +6.67% per year against +19.22% for VYM; over five years the annualized figures are -2.16% and +12.21% respectively. Across the full 6-year window we track, VYM has the edge at +7.04% annualized vs -0.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RFMZ has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -39.5% for RFMZ 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
RFMZ charges 4.27% per year while VYM charges 0.04%. On a $10,000 position that is $427 vs $4 annually, a gap of $423 per year that compounds over a long holding period. On income, RFMZ currently yields 6.94% against 2.24% for VYM.
Holdings Overlap
RFMZ and VYM share 0 holdings out of 662 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, RFMZ or VYM?
RFMZ has an expense ratio of 4.27% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $423 per year of difference.
Which performed better, RFMZ or VYM?
Over the past year RFMZ returned +13.76% vs +23.24% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), RFMZ annualized -0.45% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, RFMZ or VYM?
RFMZ has been the more volatile fund at 15.1% annualized versus 14.6% for VYM. Worst drawdown: RFMZ -39.5% vs VYM -58.8%.
Should I hold both RFMZ and VYM?
RFMZ and VYM have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RFMZ and VYM?
RFMZ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 662 unique securities.
Which pays a higher dividend, RFMZ or VYM?
RFMZ yields 6.94% while VYM yields 2.24%, so RFMZ currently pays the higher dividend yield.
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