MMT vs VYM
MMT vs VYM
MFS Multimarket Income Trust 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 | MMT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.17% | 0.04% | |
| AUM | $266M | $79.0B | |
| Dividend Yield | 8.21% | 2.86% | |
| Holdings | 920 | 568 | |
| YTD Return | -2.09% | +13.24% | |
| 1Y Return | +1.48% | +23.76% | |
| 3Y Return (annualized) | +7.20% | +16.97% | |
| 5Y Return (annualized) | +1.36% | +12.26% | |
| Volatility (annualized) | 10.8% | 14.6% | |
| Max Drawdown | -47.7% | -58.8% | |
| Fund Family | MFS Investment Management | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 12, 1987 | Nov 10, 2006 |
MMT vs VYM Performance
MFS Multimarket Income Trust (MMT) is a ETF from MFS Investment Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MMT returned +1.48% while VYM returned +23.76%. Year to date, MMT is down 2.09% versus a gain of 13.24% for VYM.
Over three years, MMT compounded at +7.20% per year against +16.97% for VYM; over five years the annualized figures are +1.36% and +12.26% respectively. Across the full 20-year window we track, VYM has the edge at +6.96% annualized vs +0.23%. 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 10.8% for MMT. 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 -47.7% for MMT 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MMT charges 1.17% per year while VYM charges 0.04%. On a $10,000 position that is $117 vs $4 annually, a gap of $113 per year that compounds over a long holding period. On income, MMT currently yields 8.21% against 2.86% for VYM.
Holdings Overlap
MMT and VYM share 0 holdings out of 1105 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, MMT or VYM?
MMT has an expense ratio of 1.17% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $113 per year of difference.
Which performed better, MMT or VYM?
Over the past year MMT returned +1.48% vs +23.76% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), MMT annualized +0.23% vs +6.96% for VYM. Past performance does not guarantee future results.
Which is riskier, MMT or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 10.8% for MMT. Worst drawdown: MMT -47.7% vs VYM -58.8%.
Should I hold both MMT and VYM?
MMT and VYM have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MMT and VYM?
MMT and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1105 unique securities.
Which pays a higher dividend, MMT or VYM?
MMT yields 8.21% while VYM yields 2.86%, so MMT currently pays the higher dividend yield.
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