NCZ vs VYM

Quick Verdict

VYM has a lower expense ratio. NCZ delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: NCZMore Diversified: VYM

Side-by-Side Comparison

MetricNCZVYMWinner
Expense Ratio1.44%0.04%
AUM$321M$79.0B
Dividend Yield8.16%2.86%
Holdings220568
YTD Return+19.30%+15.20%
1Y Return+32.47%+25.56%
3Y Return (annualized)+21.83%+17.86%
5Y Return (annualized)+5.32%+12.35%
Volatility (annualized)25.6%14.6%
Max Drawdown-85.6%-58.8%
Fund FamilyVirtus Investment PartnersVanguard (US)
CategoryConvertibleEquity
InceptionJul 31, 2003Nov 10, 2006

NCZ vs VYM Performance

Virtus Convertible & Income Fund II (NCZ) is a ETF from Virtus Investment Partners and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year NCZ returned +32.47% while VYM returned +25.56%. Year to date, NCZ is up 19.30% versus a gain of 15.20% for VYM.

Over three years, NCZ compounded at +21.83% per year against +17.86% for VYM; over five years the annualized figures are +5.32% and +12.35% respectively. Across the full 20-year window we track, VYM has the edge at +7.05% annualized vs -3.07%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

NCZ has been the more volatile fund, with annualized monthly volatility of 25.6% 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 -85.6% for NCZ 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

NCZ charges 1.44% per year while VYM charges 0.04%. On a $10,000 position that is $144 vs $4 annually, a gap of $140 per year that compounds over a long holding period. On income, NCZ currently yields 8.16% against 2.86% for VYM.

Holdings Overlap

2.4%overlap

NCZ 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

StockWeight in NCZWeight in VYMDifference
NEE1.65%0.86%0.79%
SO0.84%0.47%0.37%
STX0.76%0.38%0.38%
WECProProPro
MCHPProProPro
FEProProPro
ALBProProPro
PPLProProPro
LBRTProProPro
WTProProPro
See all 10 holdings NCZ shares with VYM
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, NCZ or VYM?

NCZ has an expense ratio of 1.44% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $140 per year of difference.

Which performed better, NCZ or VYM?

Over the past year NCZ returned +32.47% vs +25.56% for VYM, so NCZ leads on 1-year performance. Over the longest common window we track (20 years), NCZ annualized -3.07% vs +7.05% for VYM. Past performance does not guarantee future results.

Which is riskier, NCZ or VYM?

NCZ has been the more volatile fund at 25.6% annualized versus 14.6% for VYM. Worst drawdown: NCZ -85.6% vs VYM -58.8%.

Should I hold both NCZ and VYM?

NCZ 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 NCZ and VYM?

NCZ and VYM share 10 common holdings with a 2.4% weight overlap. Combined, they hold 645 unique securities.

Which pays a higher dividend, NCZ or VYM?

NCZ yields 8.16% while VYM yields 2.86%, so NCZ currently pays the higher dividend yield.

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