EMDM vs VYM
First Trust Bloomberg Emerging Market Democracies ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. EMDM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | EMDM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.04% | |
| AUM | $39M | $81.6B | |
| Dividend Yield | 2.89% | 2.24% | |
| Holdings | 110 | 616 | |
| YTD Return | +28.69% | +15.60% | |
| 1Y Return | +65.47% | +23.48% | |
| 3Y Return (annualized) | +31.00% | +19.07% | |
| 5Y Return (annualized) | - | +12.50% | |
| Volatility (annualized) | 19.6% | 14.6% | |
| Max Drawdown | -18.8% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 2, 2023 | Nov 10, 2006 |
EMDM vs VYM Performance
First Trust Bloomberg Emerging Market Democracies ETF (EMDM) is a ETF from First Trust Portfolios (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year EMDM returned +65.47% while VYM returned +23.48%. Year to date, EMDM is up 28.69% versus a gain of 15.60% for VYM.
Over three years, EMDM compounded at +31.00% per year against +19.07% for VYM. Across the full 4-year window we track, EMDM has the edge at +26.99% annualized vs +7.05%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EMDM has been the more volatile fund, with annualized monthly volatility of 19.6% 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 -18.8% for EMDM 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EMDM charges 0.75% per year while VYM charges 0.04%. On a $10,000 position that is $75 vs $4 annually, a gap of $71 per year that compounds over a long holding period. On income, EMDM currently yields 2.89% against 2.24% for VYM.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, EMDM or VYM?
EMDM has an expense ratio of 0.75% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $71 per year of difference.
Which performed better, EMDM or VYM?
Over the past year EMDM returned +65.47% vs +23.48% for VYM, so EMDM leads on 1-year performance. Over the longest common window we track (4 years), EMDM annualized +26.99% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, EMDM or VYM?
EMDM has been the more volatile fund at 19.6% annualized versus 14.6% for VYM. Worst drawdown: EMDM -18.8% vs VYM -58.8%.
Should I hold both EMDM and VYM?
EMDM and VYM have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EMDM and VYM?
EMDM and VYM share 2 common holdings with a 0.2% weight overlap. Combined, they hold 700 unique securities.
Which pays a higher dividend, EMDM or VYM?
EMDM yields 2.89% while VYM yields 2.24%, so EMDM currently pays the higher dividend yield.
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