MMU vs VOO
MMU vs VOO
Western Asset Managed Municipals Fund Inc. vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | MMU | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 1.34% | 0.03% | |
| AUM | $587M | $979.0B | |
| Dividend Yield | 5.92% | 1.09% | |
| Holdings | 427 | 509 | |
| YTD Return | -0.50% | +11.51% | |
| 1Y Return | +7.64% | +21.46% | |
| 3Y Return (annualized) | +7.24% | +20.86% | |
| 5Y Return (annualized) | -0.74% | +13.01% | |
| Volatility (annualized) | 11.1% | 14.1% | |
| Max Drawdown | -41.0% | -34.3% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Jun 26, 1992 | Sep 7, 2010 |
MMU vs VOO Performance
Western Asset Managed Municipals Fund Inc. (MMU) is a ETF from Franklin Templeton Investments (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year MMU returned +7.64% while VOO returned +21.46%. Year to date, MMU is down 0.50% versus a gain of 11.51% for VOO.
Over three years, MMU compounded at +7.24% per year against +20.86% for VOO; over five years the annualized figures are -0.74% and +13.01% respectively. Across the full 16-year window we track, VOO has the edge at +13.44% annualized vs +0.28%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 11.1% for MMU. 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 -41.0% for MMU and -34.3% for VOO. 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 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MMU charges 1.34% per year while VOO charges 0.03%. On a $10,000 position that is $134 vs $3 annually, a gap of $131 per year that compounds over a long holding period. On income, MMU currently yields 5.92% against 1.09% for VOO.
Holdings Overlap
MMU and VOO share 0 holdings out of 726 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, MMU or VOO?
MMU has an expense ratio of 1.34% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $131 per year of difference.
Which performed better, MMU or VOO?
Over the past year MMU returned +7.64% vs +21.46% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), MMU annualized +0.28% vs +13.44% for VOO. Past performance does not guarantee future results.
Which is riskier, MMU or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 11.1% for MMU. Worst drawdown: MMU -41.0% vs VOO -34.3%.
Should I hold both MMU and VOO?
MMU and VOO have a monthly-return correlation of 0.31, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MMU and VOO?
MMU and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 726 unique securities.
Which pays a higher dividend, MMU or VOO?
MMU yields 5.92% while VOO yields 1.09%, so MMU currently pays the higher dividend yield.
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