EMHY vs VYM
iShares JP Morgan Emerging Market High Yield Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. EMHY offers more diversification with 684 holdings.
Side-by-Side Comparison
| Metric | EMHY | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.04% | |
| AUM | $642M | $81.6B | |
| Dividend Yield | 6.49% | 2.24% | |
| Holdings | 684 | 616 | |
| YTD Return | -0.04% | +15.60% | |
| 1Y Return | +4.28% | +23.48% | |
| 3Y Return (annualized) | +11.33% | +19.07% | |
| 5Y Return (annualized) | +3.63% | +12.50% | |
| Volatility (annualized) | 9.9% | 14.6% | |
| Max Drawdown | -58.8% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2012 | Nov 10, 2006 |
EMHY vs VYM Performance
iShares JP Morgan Emerging Market High Yield Bond ETF (EMHY) 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 EMHY returned +4.28% while VYM returned +23.48%. Year to date, EMHY is down 0.04% versus a gain of 15.60% for VYM.
Over three years, EMHY compounded at +11.33% per year against +19.07% for VYM; over five years the annualized figures are +3.63% and +12.50% respectively. Across the full 14-year window we track, VYM has the edge at +7.05% annualized vs +4.56%. 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 9.9% for EMHY. 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 -58.8% for EMHY 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EMHY charges 0.50% per year while VYM charges 0.04%. On a $10,000 position that is $50 vs $4 annually, a gap of $46 per year that compounds over a long holding period. On income, EMHY currently yields 6.49% against 2.24% for VYM.
Holdings Overlap
EMHY and VYM share 0 holdings out of 740 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, EMHY or VYM?
EMHY has an expense ratio of 0.50% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, EMHY or VYM?
Over the past year EMHY returned +4.28% vs +23.48% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (14 years), EMHY annualized +4.56% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, EMHY or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 9.9% for EMHY. Worst drawdown: EMHY -58.8% vs VYM -58.8%.
Should I hold both EMHY and VYM?
EMHY and VYM have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EMHY and VYM?
EMHY and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 740 unique securities.
Which pays a higher dividend, EMHY or VYM?
EMHY yields 6.49% while VYM yields 2.24%, so EMHY currently pays the higher dividend yield.
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