BEMB vs VYM
BEMB vs VYM
iShares J.P. Morgan Broad USD Emerging Markets Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | BEMB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.04% | |
| AUM | $42M | $79.0B | |
| Dividend Yield | 6.07% | 2.86% | |
| Holdings | 259 | 568 | |
| YTD Return | -0.49% | +15.80% | |
| 1Y Return | +4.06% | +26.12% | |
| 3Y Return (annualized) | +7.39% | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 6.0% | 14.6% | |
| Max Drawdown | -6.2% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 22, 2023 | Nov 10, 2006 |
BEMB vs VYM Performance
iShares J.P. Morgan Broad USD Emerging Markets Bond ETF (BEMB) 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 BEMB returned +4.06% while VYM returned +26.12%. Year to date, BEMB is down 0.49% versus a gain of 15.80% for VYM.
Over three years, BEMB compounded at +7.39% per year against +18.25% for VYM. Across the full 3-year window we track, BEMB has the edge at +7.43% annualized vs +7.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 6.0% for BEMB. 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 -6.2% for BEMB 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BEMB charges 0.15% per year while VYM charges 0.04%. On a $10,000 position that is $15 vs $4 annually, a gap of $11 per year that compounds over a long holding period. On income, BEMB currently yields 6.07% against 2.86% for VYM.
Holdings Overlap
BEMB and VYM share 0 holdings out of 667 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BEMB or VYM?
BEMB has an expense ratio of 0.15% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, BEMB or VYM?
Over the past year BEMB returned +4.06% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), BEMB annualized +7.43% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, BEMB or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 6.0% for BEMB. Worst drawdown: BEMB -6.2% vs VYM -58.8%.
Should I hold both BEMB and VYM?
BEMB and VYM have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BEMB and VYM?
BEMB and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 667 unique securities.
Which pays a higher dividend, BEMB or VYM?
BEMB yields 6.07% while VYM yields 2.86%, so BEMB currently pays the higher dividend yield.
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