MFSM vs VYM
MFSM vs VYM
MFS Active Intermediate Muni Bond ETF 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 558 holdings.
Side-by-Side Comparison
| Metric | MFSM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.34% | 0.04% | |
| AUM | $100M | $79.0B | |
| Dividend Yield | 3.55% | 2.86% | |
| Holdings | 305 | 568 | |
| YTD Return | +0.72% | +15.45% | |
| 1Y Return | +4.80% | +26.05% | |
| 3Y Return (annualized) | - | +17.96% | |
| 5Y Return (annualized) | - | +12.54% | |
| Volatility (annualized) | 3.7% | 14.6% | |
| Max Drawdown | -3.9% | -58.8% | |
| Fund Family | MFS Investment Management | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Dec 5, 2024 | Nov 10, 2006 |
MFSM vs VYM Performance
MFS Active Intermediate Muni Bond ETF (MFSM) is a ETF from MFS Investment Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MFSM returned +4.80% while VYM returned +26.05%. Year to date, MFSM is up 0.72% versus a gain of 15.45% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 3.7% for MFSM. 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 -3.9% for MFSM 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MFSM charges 0.34% per year while VYM charges 0.04%. On a $10,000 position that is $34 vs $4 annually, a gap of $30 per year that compounds over a long holding period. On income, MFSM currently yields 3.55% against 2.86% for VYM.
Holdings Overlap
MFSM and VYM share 0 holdings out of 644 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, MFSM or VYM?
MFSM has an expense ratio of 0.34% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $30 per year of difference.
Which performed better, MFSM or VYM?
Over the past year MFSM returned +4.80% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), MFSM annualized +2.76% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, MFSM or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 3.7% for MFSM. Worst drawdown: MFSM -3.9% vs VYM -58.8%.
Should I hold both MFSM and VYM?
MFSM and VYM have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MFSM and VYM?
MFSM and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 644 unique securities.
Which pays a higher dividend, MFSM or VYM?
MFSM yields 3.55% while VYM yields 2.86%, so MFSM currently pays the higher dividend yield.
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