AAXJ vs VYM
iShares MSCI All Country Asia ex Japan ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. AAXJ delivered stronger 1-year returns. AAXJ offers more diversification with 820 holdings.
Side-by-Side Comparison
| Metric | AAXJ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.72% | 0.04% | |
| AUM | $3.7B | $79.0B | |
| Dividend Yield | 1.29% | 2.86% | |
| Holdings | 956 | 568 | |
| YTD Return | +20.71% | +16.53% | |
| 1Y Return | +36.62% | +25.03% | |
| 3Y Return (annualized) | +22.88% | +18.54% | |
| 5Y Return (annualized) | +7.61% | +12.25% | |
| Volatility (annualized) | 20.5% | 14.6% | |
| Max Drawdown | -49.4% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 13, 2008 | Nov 10, 2006 |
AAXJ vs VYM Performance
iShares MSCI All Country Asia ex Japan ETF (AAXJ) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year AAXJ returned +36.62% while VYM returned +25.03%. Year to date, AAXJ is up 20.71% versus a gain of 16.53% for VYM.
Over three years, AAXJ compounded at +22.88% per year against +18.54% for VYM; over five years the annualized figures are +7.61% and +12.25% respectively. Across the full 18-year window we track, VYM has the edge at +7.10% annualized vs +5.31%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
AAXJ has been the more volatile fund, with annualized monthly volatility of 20.5% 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 -49.4% for AAXJ 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
AAXJ charges 0.72% per year while VYM charges 0.04%. On a $10,000 position that is $72 vs $4 annually, a gap of $68 per year that compounds over a long holding period. On income, AAXJ currently yields 1.29% against 2.86% for VYM.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, AAXJ or VYM?
AAXJ has an expense ratio of 0.72% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $68 per year of difference.
Which performed better, AAXJ or VYM?
Over the past year AAXJ returned +36.62% vs +25.03% for VYM, so AAXJ leads on 1-year performance. Over the longest common window we track (18 years), AAXJ annualized +5.31% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, AAXJ or VYM?
AAXJ has been the more volatile fund at 20.5% annualized versus 14.6% for VYM. Worst drawdown: AAXJ -49.4% vs VYM -58.8%.
Should I hold both AAXJ and VYM?
AAXJ 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 AAXJ and VYM?
AAXJ and VYM share 2 common holdings with a 0.1% weight overlap. Combined, they hold 1376 unique securities.
Which pays a higher dividend, AAXJ or VYM?
AAXJ yields 1.29% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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