SMMU vs VYM
PIMCO Short Term Municipal Bond Active Exchange-Traded Fund 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 | SMMU | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.04% | |
| AUM | $1.2B | $81.6B | |
| Dividend Yield | 2.89% | 2.24% | |
| Holdings | 338 | 616 | |
| YTD Return | +1.27% | +14.66% | |
| 1Y Return | +2.68% | +22.16% | |
| 3Y Return (annualized) | +3.65% | +18.72% | |
| 5Y Return (annualized) | +1.93% | +12.18% | |
| Volatility (annualized) | 1.6% | 14.6% | |
| Max Drawdown | -5.1% | -58.8% | |
| Fund Family | PIMCO (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Feb 1, 2010 | Nov 10, 2006 |
SMMU vs VYM Performance
PIMCO Short Term Municipal Bond Active Exchange-Traded Fund (SMMU) is a ETF from PIMCO (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SMMU returned +2.68% while VYM returned +22.16%. Year to date, SMMU is up 1.27% versus a gain of 14.66% for VYM.
Over three years, SMMU compounded at +3.65% per year against +18.72% for VYM; over five years the annualized figures are +1.93% and +12.18% respectively. Across the full 17-year window we track, VYM has the edge at +7.01% annualized vs +0.78%. 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 1.6% for SMMU. 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 -5.1% for SMMU 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 0.20. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SMMU charges 0.35% per year while VYM charges 0.04%. On a $10,000 position that is $35 vs $4 annually, a gap of $31 per year that compounds over a long holding period. On income, SMMU currently yields 2.89% against 2.24% for VYM.
Holdings Overlap
SMMU and VYM share 0 holdings out of 819 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, SMMU or VYM?
SMMU has an expense ratio of 0.35% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, SMMU or VYM?
Over the past year SMMU returned +2.68% vs +22.16% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (17 years), SMMU annualized +0.78% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, SMMU or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 1.6% for SMMU. Worst drawdown: SMMU -5.1% vs VYM -58.8%.
Should I hold both SMMU and VYM?
SMMU and VYM have a monthly-return correlation of 0.20, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SMMU and VYM?
SMMU and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 819 unique securities.
Which pays a higher dividend, SMMU or VYM?
SMMU yields 2.89% while VYM yields 2.24%, so SMMU currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.