MMU vs VYM
MMU vs VYM
Western Asset Managed Municipals Fund Inc. 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 | MMU | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.34% | 0.04% | |
| AUM | $587M | $79.0B | |
| Dividend Yield | 5.92% | 2.86% | |
| Holdings | 427 | 568 | |
| YTD Return | -0.50% | +13.82% | |
| 1Y Return | +7.64% | +24.08% | |
| 3Y Return (annualized) | +7.24% | +17.72% | |
| 5Y Return (annualized) | -0.74% | +12.13% | |
| Volatility (annualized) | 11.1% | 14.6% | |
| Max Drawdown | -41.0% | -58.8% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Jun 26, 1992 | Nov 10, 2006 |
MMU vs VYM Performance
Western Asset Managed Municipals Fund Inc. (MMU) is a ETF from Franklin Templeton Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MMU returned +7.64% while VYM returned +24.08%. Year to date, MMU is down 0.50% versus a gain of 13.82% for VYM.
Over three years, MMU compounded at +7.24% per year against +17.72% for VYM; over five years the annualized figures are -0.74% and +12.13% respectively. Across the full 20-year window we track, VYM has the edge at +6.98% annualized vs +0.28%. 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 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 -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 0.29. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MMU charges 1.34% per year while VYM charges 0.04%. On a $10,000 position that is $134 vs $4 annually, a gap of $130 per year that compounds over a long holding period. On income, MMU currently yields 5.92% against 2.86% for VYM.
Holdings Overlap
MMU and VYM share 0 holdings out of 779 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 VYM?
MMU has an expense ratio of 1.34% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $130 per year of difference.
Which performed better, MMU or VYM?
Over the past year MMU returned +7.64% vs +24.08% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), MMU annualized +0.28% vs +6.98% for VYM. Past performance does not guarantee future results.
Which is riskier, MMU or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 11.1% for MMU. Worst drawdown: MMU -41.0% vs VYM -58.8%.
Should I hold both MMU and VYM?
MMU and VYM have a monthly-return correlation of 0.29, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MMU and VYM?
MMU and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 779 unique securities.
Which pays a higher dividend, MMU or VYM?
MMU yields 5.92% while VYM yields 2.86%, so MMU currently pays the higher dividend yield.
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