EDD vs VYM
Morgan Stanley Emerging Markets Domestic Debt Fund Inc. vs Vanguard High Dividend Yield ETF
Which is better, EDD or VYM?
Emerging Markets Bond against Large Cap Value.
VYM has a lower expense ratio. EDD led over 3Y, VYM over 1Y, 5Y and the full window.
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 | EDD | VYM |
|---|---|---|
| Expense Ratio | 1.90% | 0.04%Best |
| AUM | - | $81.6B |
| Dividend Yield | 10.73% | 2.22% |
| Holdings | 684 | 613 |
| YTD Return | +8.27% | +12.87%Best |
| 1Y Return | +15.78% | +17.25%Best |
| 3Y Return (annualized) | +17.83%Best | +17.66% |
| 5Y Return (annualized) | +6.97% | +11.98%Best |
| Volatility (annualized) | 20.9% | 14.7%Best |
| Max Drawdown | -81.5% | -58.8%Best |
| $10,000 over 5 years | $14,006 | $17,608Best |
| Fund Family | Morgan Stanley Investment Management | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Emerging Markets Bond | Large Cap Value |
| Inception | Apr 24, 2007 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Apr 24, 2007 to Sep 15, 2026 (19.4 years).
EDD 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 19.4 years both funds cover.
EDD vs VYM Performance
Morgan Stanley Emerging Markets Domestic Debt Fund Inc. (EDD) is an ETF from Morgan Stanley Investment Management and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year EDD returned +15.78% while VYM returned +17.25%. Year to date, EDD is up 8.27% versus a gain of 12.87% for VYM.
Over three years, EDD compounded at +17.83% per year against +17.66% for VYM; over five years the annualized figures are +6.97% and +11.98% respectively. Across the full 19-year window we track, VYM has the edge at +6.74% annualized vs -4.00%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EDD has been the more volatile fund, with annualized monthly volatility of 20.9% compared with 14.7% 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 -81.5% for EDD and -58.8% 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 0.60. They move together some of the time, and apart the rest.
Fees and Cost Over Time
EDD charges 1.90% per year while VYM charges 0.04%. On a $10,000 position that is $190 vs $4 annually, a gap of $186 per year that compounds over a long holding period. On income, EDD currently yields 10.73% against 2.22% for VYM.
Holdings Overlap
We hold position weights for 9 holdings in EDD and 557 in VYM, totalling 4.1% 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 181 days apart, EDD as of Jan 31, 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 9 positions we hold weights for in EDD and 557 in VYM, against full books of 684 and 613.
You are not choosing between two funds in isolation.
Whichever of EDD 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, EDD or VYM?
EDD has an expense ratio of 1.90% while VYM charges 0.04%. VYM is the cheaper option, by $186 a year on a $10,000 investment.
Which performed better, EDD or VYM?
Over the past year EDD returned +15.78% vs +17.25% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), EDD annualized -4.00% vs +6.74% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, EDD or VYM?
EDD has been the more volatile fund at 20.9% annualized versus 14.7% for VYM. Worst drawdown: EDD -81.5% vs VYM -58.8%.
Should I hold both EDD and VYM?
EDD and VYM have a monthly-return correlation of 0.60, 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, EDD or VYM?
EDD yields 10.73% while VYM yields 2.22%, so EDD currently pays the higher dividend yield.
Is VYM better than EDD?
VYM has a lower expense ratio. EDD led over 3Y, VYM over 1Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.