Quick Verdict

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

Lower Fees: VYMHigher Returns: EMFMore Diversified: VYM

Side-by-Side Comparison

MetricEMFVYMWinner
Expense Ratio1.50%0.04%
AUM$6,444.06$79.0B
Dividend Yield6.49%2.86%
Holdings100568
YTD Return+29.61%+15.80%
1Y Return+59.22%+26.12%
3Y Return (annualized)+31.63%+18.25%
5Y Return (annualized)+12.36%+12.51%
Volatility (annualized)29.3%14.6%
Max Drawdown-73.7%-58.8%
Fund FamilyFranklin Templeton Investments (US)Vanguard (US)
CategoryEquityEquity
InceptionFeb 27, 1987Nov 10, 2006

EMF vs VYM Performance

Templeton Emerging Markets Fund (EMF) is a ETF from Franklin Templeton Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year EMF returned +59.22% while VYM returned +26.12%. Year to date, EMF is up 29.61% versus a gain of 15.80% for VYM.

Over three years, EMF compounded at +31.63% per year against +18.25% for VYM; over five years the annualized figures are +12.36% and +12.51% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs +1.78%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

EMF has been the more volatile fund, with annualized monthly volatility of 29.3% 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 -73.7% for EMF 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

EMF charges 1.50% per year while VYM charges 0.04%. On a $10,000 position that is $150 vs $4 annually, a gap of $146 per year that compounds over a long holding period. On income, EMF currently yields 6.49% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

EMF and VYM share 0 holdings out of 643 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, EMF or VYM?

EMF has an expense ratio of 1.50% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $146 per year of difference.

Which performed better, EMF or VYM?

Over the past year EMF returned +59.22% vs +26.12% for VYM, so EMF leads on 1-year performance. Over the longest common window we track (20 years), EMF annualized +1.78% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, EMF or VYM?

EMF has been the more volatile fund at 29.3% annualized versus 14.6% for VYM. Worst drawdown: EMF -73.7% vs VYM -58.8%.

Should I hold both EMF and VYM?

EMF and VYM 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 EMF and VYM?

EMF and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 643 unique securities.

Which pays a higher dividend, EMF or VYM?

EMF yields 6.49% while VYM yields 2.86%, so EMF currently pays the higher dividend yield.

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