MUSI vs VYM
MUSI vs VYM
American Century Multisector 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 | MUSI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.04% | |
| AUM | $244M | $79.0B | |
| Dividend Yield | 5.51% | 2.86% | |
| Holdings | 374 | 568 | |
| YTD Return | +0.43% | +13.82% | |
| 1Y Return | +3.25% | +24.08% | |
| 3Y Return (annualized) | +6.08% | +17.72% | |
| 5Y Return (annualized) | +1.93% | +12.13% | |
| Volatility (annualized) | 5.4% | 14.6% | |
| Max Drawdown | -13.9% | -58.8% | |
| Fund Family | American Century Investments | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 29, 2021 | Nov 10, 2006 |
MUSI vs VYM Performance
American Century Multisector Income ETF (MUSI) is a ETF from American Century Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MUSI returned +3.25% while VYM returned +24.08%. Year to date, MUSI is up 0.43% versus a gain of 13.82% for VYM.
Over three years, MUSI compounded at +6.08% per year against +17.72% for VYM; over five years the annualized figures are +1.93% and +12.13% respectively. Across the full 5-year window we track, VYM has the edge at +6.98% annualized vs +1.95%. 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 5.4% for MUSI. 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 -13.9% for MUSI 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MUSI charges 0.38% per year while VYM charges 0.04%. On a $10,000 position that is $38 vs $4 annually, a gap of $34 per year that compounds over a long holding period. On income, MUSI currently yields 5.51% against 2.86% for VYM.
Holdings Overlap
MUSI and VYM share 1 holdings out of 707 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in MUSI | Weight in VYM | Difference |
|---|---|---|---|
| C | 0.44% | 0.81% | 0.37% |
Frequently Asked Questions
Which is cheaper, MUSI or VYM?
MUSI has an expense ratio of 0.38% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $34 per year of difference.
Which performed better, MUSI or VYM?
Over the past year MUSI returned +3.25% vs +24.08% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), MUSI annualized +1.95% vs +6.98% for VYM. Past performance does not guarantee future results.
Which is riskier, MUSI or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.4% for MUSI. Worst drawdown: MUSI -13.9% vs VYM -58.8%.
Should I hold both MUSI and VYM?
MUSI and VYM have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MUSI and VYM?
MUSI and VYM share 1 common holdings with a 0.4% weight overlap. Combined, they hold 707 unique securities.
Which pays a higher dividend, MUSI or VYM?
MUSI yields 5.51% while VYM yields 2.86%, so MUSI currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.