NCV vs VYM
NCV vs VYM
Virtus Convertible & Income Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. NCV delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | NCV | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.45% | 0.04% | |
| AUM | $418M | $79.0B | |
| Dividend Yield | 8.42% | 2.86% | |
| Holdings | 220 | 568 | |
| YTD Return | +19.59% | +15.80% | |
| 1Y Return | +31.88% | +26.12% | |
| 3Y Return (annualized) | +21.20% | +18.25% | |
| 5Y Return (annualized) | +4.52% | +12.51% | |
| Volatility (annualized) | 26.1% | 14.6% | |
| Max Drawdown | -84.8% | -58.8% | |
| Fund Family | Virtus Investment Partners | Vanguard (US) | |
| Category | Convertible | Equity | |
| Inception | Mar 31, 2003 | Nov 10, 2006 |
NCV vs VYM Performance
Virtus Convertible & Income Fund (NCV) is a ETF from Virtus Investment Partners and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year NCV returned +31.88% while VYM returned +26.12%. Year to date, NCV is up 19.59% versus a gain of 15.80% for VYM.
Over three years, NCV compounded at +21.20% per year against +18.25% for VYM; over five years the annualized figures are +4.52% and +12.51% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs -2.63%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
NCV has been the more volatile fund, with annualized monthly volatility of 26.1% compared with 14.6% for VYM. 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 -84.8% for NCV 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NCV charges 1.45% per year while VYM charges 0.04%. On a $10,000 position that is $145 vs $4 annually, a gap of $141 per year that compounds over a long holding period. On income, NCV currently yields 8.42% against 2.86% for VYM.
Holdings Overlap
NCV and VYM share 10 holdings out of 645 unique holdings combined, representing a 2.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in NCV | Weight in VYM | Difference |
|---|---|---|---|
| NEE | 1.60% | 0.86% | 0.74% |
| SO | 0.81% | 0.47% | 0.34% |
| STX | 0.73% | 0.38% | 0.35% |
| WEC | Pro | Pro | Pro |
| MCHP | Pro | Pro | Pro |
| FE | Pro | Pro | Pro |
| ALB | Pro | Pro | Pro |
| PPL | Pro | Pro | Pro |
| WT | Pro | Pro | Pro |
| LBRT | Pro | Pro | Pro |
See all 10 holdings NCV shares with VYM Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, NCV or VYM?
NCV has an expense ratio of 1.45% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $141 per year of difference.
Which performed better, NCV or VYM?
Over the past year NCV returned +31.88% vs +26.12% for VYM, so NCV leads on 1-year performance. Over the longest common window we track (20 years), NCV annualized -2.63% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, NCV or VYM?
NCV has been the more volatile fund at 26.1% annualized versus 14.6% for VYM. Worst drawdown: NCV -84.8% vs VYM -58.8%.
Should I hold both NCV and VYM?
NCV and VYM have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NCV and VYM?
NCV and VYM share 10 common holdings with a 2.4% weight overlap. Combined, they hold 645 unique securities.
Which pays a higher dividend, NCV or VYM?
NCV yields 8.42% while VYM yields 2.86%, so NCV currently pays the higher dividend yield.
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