DEM vs VYM
WisdomTree Emerging Markets High Dividend Fund 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 616 holdings.
Side-by-Side Comparison
| Metric | DEM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.63% | 0.04% | |
| AUM | $4.1B | $81.6B | |
| Dividend Yield | 4.19% | 2.24% | |
| Holdings | 518 | 616 | |
| YTD Return | +17.62% | +16.42% | |
| 1Y Return | +23.58% | +24.22% | |
| 3Y Return (annualized) | +17.71% | +19.03% | |
| 5Y Return (annualized) | +9.78% | +12.21% | |
| Volatility (annualized) | 19.2% | 14.6% | |
| Max Drawdown | -57.0% | -58.8% | |
| Fund Family | WisdomTree Investments | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 13, 2007 | Nov 10, 2006 |
DEM vs VYM Performance
WisdomTree Emerging Markets High Dividend Fund (DEM) is a ETF from WisdomTree Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year DEM returned +23.58% while VYM returned +24.22%. Year to date, DEM is up 17.62% versus a gain of 16.42% for VYM.
Over three years, DEM compounded at +17.71% per year against +19.03% for VYM; over five years the annualized figures are +9.78% and +12.21% respectively. Across the full 19-year window we track, VYM has the edge at +7.10% annualized vs +1.79%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DEM has been the more volatile fund, with annualized monthly volatility of 19.2% 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 -57.0% for DEM 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DEM charges 0.63% per year while VYM charges 0.04%. On a $10,000 position that is $63 vs $4 annually, a gap of $59 per year that compounds over a long holding period. On income, DEM currently yields 4.19% against 2.24% for VYM.
Holdings Overlap
DEM and VYM share 0 holdings out of 1104 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, DEM or VYM?
DEM has an expense ratio of 0.63% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $59 per year of difference.
Which performed better, DEM or VYM?
Over the past year DEM returned +23.58% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), DEM annualized +1.79% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, DEM or VYM?
DEM has been the more volatile fund at 19.2% annualized versus 14.6% for VYM. Worst drawdown: DEM -57.0% vs VYM -58.8%.
Should I hold both DEM and VYM?
DEM and VYM have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DEM and VYM?
DEM and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1104 unique securities.
Which pays a higher dividend, DEM or VYM?
DEM yields 4.19% while VYM yields 2.24%, so DEM currently pays the higher dividend yield.
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