RMMZ vs VYM
RiverNorth Managed Duration 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 | RMMZ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 6.81% | 0.04% | |
| AUM | $135M | $81.6B | |
| Dividend Yield | 5.75% | 2.24% | |
| Holdings | 100 | 616 | |
| YTD Return | +5.28% | +15.34% | |
| 1Y Return | +6.50% | +23.24% | |
| 3Y Return (annualized) | +5.13% | +19.22% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 16.8% | 14.6% | |
| Max Drawdown | -27.1% | -58.8% | |
| Fund Family | RiverNorth | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Feb 10, 2022 | Nov 10, 2006 |
RMMZ vs VYM Performance
RiverNorth Managed Duration Municipal Income Fund II, Inc (RMMZ) is a ETF from RiverNorth and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year RMMZ returned +6.50% while VYM returned +23.24%. Year to date, RMMZ is up 5.28% versus a gain of 15.34% for VYM.
Over three years, RMMZ compounded at +5.13% per year against +19.22% for VYM. Across the full 5-year window we track, VYM has the edge at +7.04% annualized vs +1.68%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RMMZ has been the more volatile fund, with annualized monthly volatility of 16.8% 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 -27.1% for RMMZ 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
RMMZ charges 6.81% per year while VYM charges 0.04%. On a $10,000 position that is $681 vs $4 annually, a gap of $677 per year that compounds over a long holding period. On income, RMMZ currently yields 5.75% against 2.24% for VYM.
Holdings Overlap
RMMZ and VYM share 0 holdings out of 655 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, RMMZ or VYM?
RMMZ has an expense ratio of 6.81% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $677 per year of difference.
Which performed better, RMMZ or VYM?
Over the past year RMMZ returned +6.50% vs +23.24% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), RMMZ annualized +1.68% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, RMMZ or VYM?
RMMZ has been the more volatile fund at 16.8% annualized versus 14.6% for VYM. Worst drawdown: RMMZ -27.1% vs VYM -58.8%.
Should I hold both RMMZ and VYM?
RMMZ 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 RMMZ and VYM?
RMMZ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 655 unique securities.
Which pays a higher dividend, RMMZ or VYM?
RMMZ yields 5.75% while VYM yields 2.24%, so RMMZ currently pays the higher dividend yield.
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