Two of the market's most popular income ETFs compared side-by-side. See which one fits your yield strategy.
What this means: AMRFX is ratedTier 1 (Cornerstone)while VNQ is ratedTier 3 (Specialty).AMRFX is structurally lower risk than VNQ.
| Metric | AMRFX | VNQ |
|---|---|---|
| Total Return (1Y) | 28.54% | -0.21% |
| NAV Change (1Y) | 3.10% | -3.74% |
| Max Drawdown | -20.35% | -15.42% |
| Beta | - | - |
* Returns include dividend reinvestment. Drawdown calculates peak-to-trough decline over trailing 12 months.
AMRFX (American Funds American Mutual F2) is a conservative dividend growth fund managed by American Funds. It focuses on generating income through strategic holdings. With significant capital, this fund has been operational since its inception.
Strategy: Focuses on quality dividend-paying companies with strong balance sheets and consistent payout histories.
VNQ (Vanguard Real Estate) is a sector-specific income fund managed by Vanguard. It focuses on generating income through strategic holdings. With $64.0B in assets under management, this fund has been operational since its inception.
Strategy: Concentrates on sector-specific opportunities, typically REITs, MLPs, or BDCs with higher baseline yields.
In the head-to-head battle of AMRFX vs VNQ, the choice depends on your specific goal. AMRFX wins for Immediate Income with a 25.44% yield. However, AMRFX is the better choice for Long-Term Growth due to superior total return performance.
Which fund is safer for retirement income? We analyze the yield sustainability and structural risk.
The Bottom Line Question: If you invest $100,000 today, how much cash will you actually receive each month? Here's the exact math:
AMRFX
Annual Yield: 25.44%
$2,120/mo
($25,439/year)
Frequency: quarterly
VNQ
Annual Yield: 3.53%
$294/mo
($3,529/year)
Frequency: quarterly
Income Gap: AMRFX generates $21,910/year more than VNQ on the same $100k investment.
Over 20 years, that's $438,207 in additional cash flow (before reinvestment).
Context Matters: Higher income doesn't always mean better investment. Review the "Yield Trap" and "Total Return" sections above—you want income that's sustainable, not just headline-grabbing.
Historical data reveals how these funds behave during market stress. AMRFX has delivered a superior Total Return of 28.54% over the past year.
What is Max Drawdown? Max drawdown measures the largest peak-to-trough decline in portfolio value during a specific period. Unlike NAV change (which only looks at start vs. end), max drawdown captures the worst moment of pain an investor experienced.
Real-World Scenario: $100,000 Investment
VNQ (More Resilient)
Max Drawdown: -15.42%
-$15,420
Worst unrealized loss
AMRFX (More Volatile)
Max Drawdown: -20.35%
-$20,350
Worst unrealized loss
Protection Value: VNQ saved investors $4,930 in drawdown severity on a $100k position.
Why This Matters More Than Total Return: During bear markets or corrections, investors with lower max drawdown are:
⚖️ Capital Preservation Winner: VNQ demonstrated superior downside protection, making it the better choice for retirees who cannot afford steep temporary losses.
Every investor has a unique risk profile. Use our Portfolio Intelligence tool to see the impact of adding these ETFs to your holdings.