VYM vs ZTAX
Vanguard High Dividend Yield ETF vs X-Square Municipal Income Tax Free 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 | VYM | ZTAX | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.92% | |
| AUM | $81.6B | $5M | |
| Dividend Yield | 2.24% | 4.72% | |
| Holdings | 616 | 17 | |
| YTD Return | +15.36% | +1.54% | |
| 1Y Return | +21.96% | +7.03% | |
| 3Y Return (annualized) | +18.85% | +5.83% | |
| 5Y Return (annualized) | +12.25% | - | |
| Volatility (annualized) | 14.6% | 8.2% | |
| Max Drawdown | -58.8% | -15.3% | |
| Fund Family | Vanguard (US) | X-Square Capital | |
| Category | Equity | Tax Preferred | |
| Inception | Nov 10, 2006 | May 17, 2023 |
VYM vs ZTAX Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and X-Square Municipal Income Tax Free ETF (ZTAX) is a ETF from X-Square Capital. Over the past year VYM returned +21.96% while ZTAX returned +7.03%. Year to date, VYM is up 15.36% versus a gain of 1.54% for ZTAX.
Over three years, VYM compounded at +18.85% per year against +5.83% for ZTAX. Across the full 3-year window we track, VYM has the edge at +7.03% annualized vs +6.06%. 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 8.2% 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 -58.8% for VYM and -15.3% for ZTAX. 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 0.23. They move independently enough that combining them can meaningfully diversify a portfolio.
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 2.24% against 4.72% for ZTAX.
Holdings Overlap
VYM and ZTAX share 0 holdings out of 615 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, VYM or ZTAX?
VYM has an expense ratio of 0.04% while ZTAX charges 0.92%. VYM is the cheaper option. On a $10,000 investment, that is $88 per year of difference.
Which performed better, VYM or ZTAX?
Over the past year VYM returned +21.96% vs +7.03% for ZTAX, so VYM leads on 1-year performance. Over the longest common window we track (3 years), VYM annualized +7.03% vs +6.06% for ZTAX. Past performance does not guarantee future results.
Which is riskier, VYM or ZTAX?
VYM has been the more volatile fund at 14.6% annualized versus 8.2% for ZTAX. Worst drawdown: VYM -58.8% vs ZTAX -15.3%.
Should I hold both VYM and ZTAX?
VYM and ZTAX have a monthly-return correlation of 0.23, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and ZTAX?
VYM and ZTAX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 615 unique securities.
Which pays a higher dividend, VYM or ZTAX?
VYM yields 2.24% while ZTAX yields 4.72%, so ZTAX 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.