VYM vs ZTAX
Vanguard High Dividend Yield ETF vs X-Square Municipal Income Tax Free ETF
Which is better, VYM or ZTAX?
Large Cap Value against Municipal Bond.
VYM has a lower expense ratio. VYM led over 1Y, 3Y 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 | VYM | ZTAX |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.92% |
| AUM | $83.1B | $5M |
| Dividend Yield | 2.22% | 4.72% |
| Holdings | 608 | 33 |
| YTD Return | +11.26%Best | -6.86% |
| 1Y Return | +14.78%Best | -2.96% |
| 3Y Return (annualized) | +18.84%Best | +2.91% |
| 5Y Return (annualized) | +11.52% | - |
| Volatility (annualized) | 11.3% | 8.6%Best |
| Max Drawdown | -14.5%Best | -16.3% |
| $10,000 over 3.4 years | $16,852Best | $11,123 |
| Fund Family | Vanguard (US) | X-Square Capital |
| Category | Equity | Tax Preferred |
| Style | Large Cap Value | Municipal Bond |
| Inception | Nov 10, 2006 | May 17, 2023 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 3.4 years row, are measured over the window both funds cover: May 19, 2023 to Oct 8, 2026 (3.4 years).
VYM vs ZTAX 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 3.4 years both funds cover.
VYM vs ZTAX Performance
Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US) and X-Square Municipal Income Tax Free ETF (ZTAX) is an ETF from X-Square Capital. Over the past year VYM returned +14.78% while ZTAX returned -2.96%. Year to date, VYM is up 11.26% versus a loss of 6.86% for ZTAX.
Over three years, VYM compounded at +18.84% per year against +2.91% for ZTAX.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 11.3% compared with 8.6% for ZTAX. 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 -14.5% for VYM and -16.3% for ZTAX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.25. They move largely independently of each other.
Fees and Cost Over Time
VYM charges 0.04% per year while ZTAX charges 0.92%. On a $10,000 position that is $4 vs $92 annually, a gap of $88 per year that compounds over a long holding period. On income, VYM currently yields 2.22% against 4.72% for ZTAX.
Holdings Overlap
We hold position weights for 557 holdings in VYM and 11 in ZTAX, totalling 99.2% and 82.4% 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 46 days apart, VYM as of Jul 31, 2026 and ZTAX as of Sep 15, 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 557 positions we hold weights for in VYM and 11 in ZTAX, against full books of 608 and 33.
You are not choosing between two funds in isolation.
Whichever of VYM and ZTAX 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, VYM or ZTAX?
VYM has an expense ratio of 0.04% while ZTAX charges 0.92%. VYM is the cheaper option, by $88 a year on a $10,000 investment.
Which performed better, VYM or ZTAX?
Over the past year VYM returned +14.78% vs -2.96% for ZTAX, so VYM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VYM or ZTAX?
VYM has been the more volatile fund at 11.3% annualized versus 8.6% for ZTAX. Worst drawdown: VYM -14.5% vs ZTAX -16.3%.
Should I hold both VYM and ZTAX?
VYM and ZTAX have a monthly-return correlation of 0.25, 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, VYM or ZTAX?
VYM yields 2.22% while ZTAX yields 4.72%, so ZTAX currently pays the higher dividend yield.
Is ZTAX better than VYM?
VYM has a lower expense ratio. VYM led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.