MUSE vs VYM
MUSE vs VYM
TCW Multisector Credit Income 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 | MUSE | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.56% | 0.04% | |
| AUM | $40M | $79.0B | |
| Dividend Yield | 7.67% | 2.86% | |
| Holdings | 260 | 568 | |
| YTD Return | +2.23% | +15.57% | |
| 1Y Return | +5.06% | +25.99% | |
| 3Y Return (annualized) | - | +18.02% | |
| 5Y Return (annualized) | - | +12.71% | |
| Volatility (annualized) | 2.9% | 14.6% | |
| Max Drawdown | -3.6% | -58.8% | |
| Fund Family | TCW ETFs | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 15, 2024 | Nov 10, 2006 |
MUSE vs VYM Performance
TCW Multisector Credit Income ETF (MUSE) is a ETF from TCW ETFs and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MUSE returned +5.06% while VYM returned +25.99%. Year to date, MUSE is up 2.23% versus a gain of 15.57% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 2.9% for MUSE. 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 -3.6% for MUSE 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MUSE charges 0.56% per year while VYM charges 0.04%. On a $10,000 position that is $56 vs $4 annually, a gap of $52 per year that compounds over a long holding period. On income, MUSE currently yields 7.67% against 2.86% for VYM.
Holdings Overlap
MUSE and VYM share 1 holdings out of 701 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in MUSE | Weight in VYM | Difference |
|---|---|---|---|
| CNP | 0.64% | 0.12% | 0.52% |
Frequently Asked Questions
Which is cheaper, MUSE or VYM?
MUSE has an expense ratio of 0.56% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $52 per year of difference.
Which performed better, MUSE or VYM?
Over the past year MUSE returned +5.06% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), MUSE annualized +6.35% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, MUSE or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 2.9% for MUSE. Worst drawdown: MUSE -3.6% vs VYM -58.8%.
Should I hold both MUSE and VYM?
MUSE and VYM have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MUSE and VYM?
MUSE and VYM share 1 common holdings with a 0.1% weight overlap. Combined, they hold 701 unique securities.
Which pays a higher dividend, MUSE or VYM?
MUSE yields 7.67% while VYM yields 2.86%, so MUSE currently pays the higher dividend yield.
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