EEMS vs VYM
Ishares MSCI Emerging Markets Small Cap ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. EEMS offers more diversification with 1470 holdings.
Side-by-Side Comparison
| Metric | EEMS | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.73% | 0.04% | |
| AUM | $357M | $79.0B | |
| Dividend Yield | 2.81% | 2.86% | |
| Holdings | 1,875 | 568 | |
| YTD Return | +9.97% | +15.80% | |
| 1Y Return | +18.03% | +26.12% | |
| 3Y Return (annualized) | +13.76% | +18.25% | |
| 5Y Return (annualized) | +6.53% | +12.51% | |
| Volatility (annualized) | 17.3% | 14.6% | |
| Max Drawdown | -51.7% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 16, 2011 | Nov 10, 2006 |
EEMS vs VYM Performance
Ishares MSCI Emerging Markets Small Cap ETF (EEMS) 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 EEMS returned +18.03% while VYM returned +26.12%. Year to date, EEMS is up 9.97% versus a gain of 15.80% for VYM.
Over three years, EEMS compounded at +13.76% per year against +18.25% for VYM; over five years the annualized figures are +6.53% and +12.51% respectively. Across the full 15-year window we track, VYM has the edge at +7.07% annualized vs +3.77%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EEMS has been the more volatile fund, with annualized monthly volatility of 17.3% 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 -51.7% for EEMS 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EEMS charges 0.73% per year while VYM charges 0.04%. On a $10,000 position that is $73 vs $4 annually, a gap of $69 per year that compounds over a long holding period. On income, EEMS currently yields 2.81% against 2.86% for VYM.
Holdings Overlap
EEMS and VYM share 0 holdings out of 2028 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, EEMS or VYM?
EEMS has an expense ratio of 0.73% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $69 per year of difference.
Which performed better, EEMS or VYM?
Over the past year EEMS returned +18.03% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (15 years), EEMS annualized +3.77% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, EEMS or VYM?
EEMS has been the more volatile fund at 17.3% annualized versus 14.6% for VYM. Worst drawdown: EEMS -51.7% vs VYM -58.8%.
Should I hold both EEMS and VYM?
EEMS and VYM have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EEMS and VYM?
EEMS and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2028 unique securities.
Which pays a higher dividend, EEMS or VYM?
EEMS yields 2.81% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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