EMD vs VTI
Western Asset Emerging Markets Debt Fund Inc vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | EMD | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 1.59% | 0.03% | |
| AUM | $636M | $663.5B | |
| Dividend Yield | 9.68% | 1.07% | |
| Holdings | 278 | 3,543 | |
| YTD Return | +3.77% | +13.87% | |
| 1Y Return | +13.98% | +23.31% | |
| 3Y Return (annualized) | +17.06% | +21.17% | |
| 5Y Return (annualized) | +4.72% | +12.23% | |
| Volatility (annualized) | 17.2% | 15.3% | |
| Max Drawdown | -64.5% | -56.6% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 1, 2003 | May 24, 2001 |
EMD vs VTI Performance
Western Asset Emerging Markets Debt Fund Inc (EMD) is a ETF from Franklin Templeton Investments (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year EMD returned +13.98% while VTI returned +23.31%. Year to date, EMD is up 3.77% versus a gain of 13.87% for VTI.
Over three years, EMD compounded at +17.06% per year against +21.17% for VTI; over five years the annualized figures are +4.72% and +12.23% respectively. Across the full 23-year window we track, VTI has the edge at +8.13% annualized vs -0.36%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EMD has been the more volatile fund, with annualized monthly volatility of 17.2% compared with 15.3% for VTI. 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 -64.5% for EMD and -56.6% for VTI. 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EMD charges 1.59% per year while VTI charges 0.03%. On a $10,000 position that is $159 vs $3 annually, a gap of $156 per year that compounds over a long holding period. On income, EMD currently yields 9.68% against 1.07% for VTI.
Holdings Overlap
EMD and VTI share 0 holdings out of 2919 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, EMD or VTI?
EMD has an expense ratio of 1.59% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $156 per year of difference.
Which performed better, EMD or VTI?
Over the past year EMD returned +13.98% vs +23.31% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (23 years), EMD annualized -0.36% vs +8.13% for VTI. Past performance does not guarantee future results.
Which is riskier, EMD or VTI?
EMD has been the more volatile fund at 17.2% annualized versus 15.3% for VTI. Worst drawdown: EMD -64.5% vs VTI -56.6%.
Should I hold both EMD and VTI?
EMD and VTI have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EMD and VTI?
EMD and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2919 unique securities.
Which pays a higher dividend, EMD or VTI?
EMD yields 9.68% while VTI yields 1.07%, so EMD currently pays the higher dividend yield.
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