VYM vs. NEA

Last updated Jun 20, 2026

VYM (Vanguard High Dividend Yield ETF) is Dividend fund tracking the FTSE High Dividend Yield Index, while NEA (Nuveen AMT-Free Quality Municipal Income Fund) is a stock. Over the past 10 years, VYM returned 11.78%/yr vs 3.01%/yr for NEA. At a 0.14 correlation, their price movements are largely independent. VYM charges 0.04%/yr vs 1.41%/yr for NEA.

Performance

VYM vs. NEA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard High Dividend Yield ETF (VYM) and Nuveen AMT-Free Quality Municipal Income Fund (NEA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VYM achieves a 11.57% return, which is significantly higher than NEA's 3.22% return. Over the past 10 years, VYM has outperformed NEA with an annualized return of 11.78%, while NEA has yielded a comparatively lower 3.01% annualized return.

VYM

• 1D: 0.07%
• 1M: 1.56%
• YTD: 11.57%
• 6M: 11.72%
• 1Y: 25.29%
• 3Y*: 17.42%
• 5Y*: 12.42%
• 10Y*: 11.78%

NEA

• 1D: 0.61%
• 1M: 3.54%
• YTD: 3.22%
• 6M: 3.85%
• 1Y: 15.57%
• 3Y*: 9.20%
• 5Y*: -0.07%
• 10Y*: 3.01%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VYM vs. NEA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VYM Vanguard High Dividend Yield ETF	11.57%	15.42%	17.60%	6.57%	-0.43%	26.20%	1.15%	24.06%	-5.92%	16.42%
NEA Nuveen AMT-Free Quality Municipal Income Fund	3.22%	11.31%	9.50%	0.75%	-23.32%	8.16%	10.07%	22.42%	-5.72%	8.77%

Correlation

The correlation between VYM and NEA is 0.22, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.22
Correlation (3Y) Calculated over the trailing 3-year period	0.28
Correlation (5Y) Calculated over the trailing 5-year period	0.25
Correlation (10Y) Calculated over the trailing 10-year period	0.18
Correlation (All Time) Calculated using the full available price history since Nov 16, 2006	0.14

The correlation between VYM and NEA shifts across timeframes, from 0.14 (all time) to 0.28 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

VYM vs. NEA — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VYM

VYM Risk / Return Rank: 80
VYM Sharpe Ratio Rank: 81
VYM Sortino Ratio Rank: 83
VYM Omega Ratio Rank: 80
VYM Calmar Ratio Rank: 78
VYM Martin Ratio Rank: 77

NEA

NEA Risk / Return Rank: 81
NEA Sharpe Ratio Rank: 82
NEA Sortino Ratio Rank: 79
NEA Omega Ratio Rank: 79
NEA Calmar Ratio Rank: 77
NEA Martin Ratio Rank: 85

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VYM vs. NEA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard High Dividend Yield ETF (VYM) and Nuveen AMT-Free Quality Municipal Income Fund (NEA). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	VYM	NEA	Difference
Sharpe ratio: Return per unit of total volatility	2.44	1.46	+0.99
Sortino ratio: Return per unit of downside risk	3.48	2.18	+1.30
Omega ratio: Gain probability vs. loss probability	1.44	1.29	+0.15
Calmar ratio: Return relative to maximum drawdown	3.79	2.15	+1.65
Martin ratio: Return relative to average drawdown	14.13	8.57	+5.56

VYM vs. NEA - Sharpe Ratio Comparison

The current VYM Sharpe Ratio is 2.44, which is higher than the NEA Sharpe Ratio of 1.46. The chart below compares the historical Sharpe Ratios of VYM and NEA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VYM vs. NEA - Drawdown Comparison

The maximum VYM drawdown since its inception was -56.98%, which is greater than NEA's maximum drawdown of -43.83%. Use the drawdown chart below to compare losses from any high point for VYM and NEA.

Drawdown Indicators

	VYM	NEA	Difference
Max Drawdown Largest peak-to-trough decline	-56.98%	-43.83%	-13.15%
Max Drawdown (1Y) Largest decline over 1 year	-6.69%	-7.27%	+0.58%
Max Drawdown (3Y) Largest decline over 3 years	-14.46%	-15.16%	+0.70%
Max Drawdown (5Y) Largest decline over 5 years	-15.84%	-36.57%	+20.73%
Max Drawdown (10Y) Largest decline over 10 years	-35.21%	-36.57%	+1.36%
Current Drawdown Current decline from peak	-1.23%	-4.02%	+2.79%
Average Drawdown Average peak-to-trough decline	-7.18%	-8.00%	+0.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.79%	1.82%	-0.03%

Volatility

VYM vs. NEA - Volatility Comparison

Vanguard High Dividend Yield ETF (VYM) has a higher volatility of 3.06% compared to Nuveen AMT-Free Quality Municipal Income Fund (NEA) at 2.67%. This indicates that VYM's price experiences larger fluctuations and is considered to be riskier than NEA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VYM	NEA	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.06%	2.67%	+0.39%
Volatility (6M) Calculated over the trailing 6-month period	7.65%	8.67%	-1.02%
Volatility (1Y) Calculated over the trailing 1-year period	10.39%	10.72%	-0.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.95%	11.52%	+2.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.35%	11.82%	+4.53%

VYM vs. NEA - Expense Ratio Comparison

VYM has a 0.04% expense ratio, which is lower than NEA's 1.41% expense ratio.

Dividends

VYM vs. NEA - Dividend Comparison

VYM's dividend yield for the trailing twelve months is around 2.84%, less than NEA's 7.13% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NEA Nuveen AMT-Free Quality Municipal Income Fund	7.13%	7.36%	6.63%	3.95%	5.49%	4.50%	4.45%	4.46%	5.40%	5.33%	5.70%	5.71%
VYM Vanguard High Dividend Yield ETF	2.84%	2.44%	2.74%	3.12%	3.01%	2.76%	3.18%	3.03%	3.40%	2.80%	2.91%	3.22%

Frequently Asked Questions

Can I hold both VYM and NEA in my portfolio?

VYM and NEA have a correlation of 0.22, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VYM or NEA?

VYM has higher volatility (3.06%) compared to NEA (2.67%). In terms of maximum drawdown, VYM dropped -56.98% vs NEA's -43.83%.

Which has better risk-adjusted returns?

VYM currently has the higher Sharpe Ratio (2.44 vs 1.46), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.