AFEM vs VYM
First Trust Active Factor Emerging Markets ETF vs Vanguard High Dividend Yield ETF
Which is better, AFEM or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. AFEM led over 1Y, 3Y and 5Y, VYM over the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 36.1%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | AFEM | VYM |
|---|---|---|
| Expense Ratio | 0.99% | 0.04%Best |
| AUM | $83M | $83.1B |
| Dividend Yield | 2.51% | 2.22% |
| Holdings | 178 | 608 |
| YTD Return | +25.14%Best | +10.00% |
| 1Y Return | +32.80%Best | +13.75% |
| 3Y Return (annualized) | +27.13%Best | +18.81% |
| 5Y Return (annualized) | +12.77%Best | +11.63% |
| Volatility (annualized) | 17.1% | 14.2%Best |
| Max Drawdown | -45.6% | -35.7%Best |
| $10,000 over 5 years | $18,238Best | $17,334 |
| Top 10 Weight | 36.1% | 26.1%Best |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Jun 14, 2016 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Jun 15, 2016 to Oct 2, 2026 (10.3 years).
AFEM vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 10.3 years both funds cover.
AFEM vs VYM Performance
First Trust Active Factor Emerging Markets ETF (AFEM) is an ETF from First Trust Portfolios (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year AFEM returned +32.80% while VYM returned +13.75%. Year to date, AFEM is up 25.14% versus a gain of 10.00% for VYM.
Over three years, AFEM compounded at +27.13% per year against +18.81% for VYM; over five years the annualized figures are +12.77% and +11.63% respectively. Across the full 10-year window we track, VYM has the edge at +9.82% annualized vs +9.04%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
AFEM has been the more volatile fund, with annualized monthly volatility of 17.1% compared with 14.2% 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 -45.6% for AFEM and -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.68. They move together some of the time, and apart the rest.
Fees and Cost Over Time
AFEM charges 0.99% per year while VYM charges 0.04%. On a $10,000 position that is $99 vs $4 annually, a gap of $95 per year that compounds over a long holding period. On income, AFEM currently yields 2.51% against 2.22% for VYM.
Holdings Overlap
We hold position weights for 178 holdings in AFEM and 557 in VYM, totalling 99.6% and 99.2% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 46 days apart, AFEM as of Sep 15, 2026 and VYM as of Jul 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 178 positions we hold weights for in AFEM and 557 in VYM, against full books of 178 and 608.
What only one of them owns
Our book lists 528 positions for VYM that do not appear in our book for AFEM (97.1% of the fund), and 4 for AFEM that do not appear in VYM (2.2%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of AFEM and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, AFEM or VYM?
AFEM has an expense ratio of 0.99% while VYM charges 0.04%. VYM is the cheaper option, by $95 a year on a $10,000 investment.
Which performed better, AFEM or VYM?
Over the past year AFEM returned +32.80% vs +13.75% for VYM, so AFEM leads on 1-year performance. Over the longest common window we track (10 years), AFEM annualized +9.04% vs +9.82% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, AFEM or VYM?
AFEM has been the more volatile fund at 17.1% annualized versus 14.2% for VYM. Worst drawdown: AFEM -45.6% vs VYM -35.7%.
Should I hold both AFEM and VYM?
AFEM and VYM have a monthly-return correlation of 0.68, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, AFEM or VYM?
AFEM yields 2.51% while VYM yields 2.22%, so AFEM currently pays the higher dividend yield.
Is VYM better than AFEM?
VYM has a lower expense ratio. AFEM led over 1Y, 3Y and 5Y, VYM over the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 36.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.