NYF vs VCRM

NYFAiShares New York Muni Bond ETF

VCRMAVanguard Core Tax-Exempt Bond E

In short

NYF New York in one ticker: roughly 900 investment-grade, AMT-free munis from the Empire State, at a fee that undercuts most muni funds. Running since 2007, and it tracks its index closely.

VCRM Vanguard's active answer in a mostly-index category: managers working the whole muni curve for 0.12% a year, under half the muni ETF median fee. Monthly income, exempt from federal personal income taxes.

Stated mandate

NYF The fund seeks to track the ICE AMT-Free New York Plus Municipal Index, which represents investment-grade, tax-exempt U.S. dollar debt issued primarily by New York and its political subdivisions. It uses indexing and representative sampling rather than active security selection.

VCRM The fund seeks total return through current income exempt from federal personal income taxes and capital appreciation.

Why people hold it

• NYF At 0.09% a year it charges less than the typical muni bond ETF, which is unusual for single-state exposure (narrower usually means pricier).
• Follows the ICE AMT-Free New York Plus Municipal Index with very little drift, using representative sampling rather than picking bonds by hand.sec.gov
• Launched in 2007, one of the original New York muni ETFs and now a multi-billion-dollar fund that pays monthly.
• Income is tax-exempt at the federal level and for New York State, and the index screens out AMT bonds.ishares.com

• VCRM Active management priced at 0.12% a year, less than half the 0.30% median for muni ETFs.
• Run by Vanguard's Fixed Income Group, with all-curve exposure to primarily high-quality investment-grade munis spread across sectors, states and credit tiers.prnewswire.com
• Pays monthly, with income the fund seeks to keep exempt from federal personal income taxes.vanguard.com
• Sticks tightly to its stated mandate and grades among the strongest implementations in its muni peer group.

Worth knowing

• NYF One state's credit story: New York and its subdivisions drive the portfolio, so Albany and City Hall budget news matters more here than in a national muni fund.
• The state tax break only reaches New York taxpayers. Elsewhere you get the federal exemption alone.ishares.com
• Muni prices move with interest rates, and this trades less actively than national heavyweights like MUB and VTEB, so spreads can run wider.

• VCRM You pay up for the manager: index peers VTEB and SCMB run at 0.03%, a quarter of VCRM's 0.12%.
• Launched in November 2024, so there is only a short record to judge the active mandate on.
• All-curve exposure puts longer maturities in the mix, so prices move with rates. And the exemption is federal: state treatment of a national muni fund depends on where you live.prnewswire.com

Full NYF profile⁠

Full VCRM profile⁠