RMM vs VYM
RiverNorth Managed Duration Municipal Income Fund, 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 | RMM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 6.83% | 0.04% | |
| AUM | $299M | $81.6B | |
| Dividend Yield | 6.96% | 2.24% | |
| Holdings | 112 | 616 | |
| YTD Return | +9.52% | +14.66% | |
| 1Y Return | +14.91% | +22.16% | |
| 3Y Return (annualized) | +5.69% | +18.72% | |
| 5Y Return (annualized) | -0.65% | +12.18% | |
| Volatility (annualized) | 35.2% | 14.6% | |
| Max Drawdown | -83.8% | -58.8% | |
| Fund Family | RiverNorth | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Jul 25, 2019 | Nov 10, 2006 |
RMM vs VYM Performance
RiverNorth Managed Duration Municipal Income Fund, Inc. (RMM) is a ETF from RiverNorth and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year RMM returned +14.91% while VYM returned +22.16%. Year to date, RMM is up 9.52% versus a gain of 14.66% for VYM.
Over three years, RMM compounded at +5.69% per year against +18.72% for VYM; over five years the annualized figures are -0.65% and +12.18% respectively. Across the full 19-year window we track, VYM has the edge at +7.01% annualized vs -6.43%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RMM has been the more volatile fund, with annualized monthly volatility of 35.2% 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 -83.8% for RMM 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
RMM charges 6.83% per year while VYM charges 0.04%. On a $10,000 position that is $683 vs $4 annually, a gap of $679 per year that compounds over a long holding period. On income, RMM currently yields 6.96% against 2.24% for VYM.
Holdings Overlap
RMM and VYM share 0 holdings out of 661 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, RMM or VYM?
RMM has an expense ratio of 6.83% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $679 per year of difference.
Which performed better, RMM or VYM?
Over the past year RMM returned +14.91% vs +22.16% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), RMM annualized -6.43% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, RMM or VYM?
RMM has been the more volatile fund at 35.2% annualized versus 14.6% for VYM. Worst drawdown: RMM -83.8% vs VYM -58.8%.
Should I hold both RMM and VYM?
RMM and VYM have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RMM and VYM?
RMM and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 661 unique securities.
Which pays a higher dividend, RMM or VYM?
RMM yields 6.96% while VYM yields 2.24%, so RMM currently pays the higher dividend yield.
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