Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricEMBDVYMWinner
Expense Ratio0.39%0.04%
AUM$249M$79.0B
Dividend Yield5.65%2.86%
Holdings234568
YTD Return+1.70%+15.80%
1Y Return+6.18%+26.12%
3Y Return (annualized)+8.84%+18.25%
5Y Return (annualized)+2.85%+12.51%
Volatility (annualized)8.8%14.6%
Max Drawdown-25.0%-58.8%
Fund FamilyGlobal X by mirae AssetVanguard (US)
CategoryFixed IncomeEquity
InceptionJun 1, 2020Nov 10, 2006

EMBD vs VYM Performance

Global X Emerging Markets Bond ETF (EMBD) is a ETF from Global X by mirae Asset and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year EMBD returned +6.18% while VYM returned +26.12%. Year to date, EMBD is up 1.70% versus a gain of 15.80% for VYM.

Over three years, EMBD compounded at +8.84% per year against +18.25% for VYM; over five years the annualized figures are +2.85% and +12.51% respectively. Across the full 6-year window we track, VYM has the edge at +7.07% annualized vs +3.33%. 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 8.8% for EMBD. 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 -25.0% for EMBD 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 0.70. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

EMBD charges 0.39% per year while VYM charges 0.04%. On a $10,000 position that is $39 vs $4 annually, a gap of $35 per year that compounds over a long holding period. On income, EMBD currently yields 5.65% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

EMBD and VYM share 0 holdings out of 635 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, EMBD or VYM?

EMBD has an expense ratio of 0.39% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $35 per year of difference.

Which performed better, EMBD or VYM?

Over the past year EMBD returned +6.18% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), EMBD annualized +3.33% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, EMBD or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 8.8% for EMBD. Worst drawdown: EMBD -25.0% vs VYM -58.8%.

Should I hold both EMBD and VYM?

EMBD and VYM have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between EMBD and VYM?

EMBD and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 635 unique securities.

Which pays a higher dividend, EMBD or VYM?

EMBD yields 5.65% while VYM yields 2.86%, so EMBD currently pays the higher dividend yield.

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