EPEM vs VYM

Quick Verdict

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

Lower Fees: VYMHigher Returns: EPEMMore Diversified: VYM

Side-by-Side Comparison

MetricEPEMVYMWinner
Expense Ratio0.84%0.04%
AUM$8M$79.0B
Dividend Yield2.94%2.86%
Holdings44568
YTD Return+23.46%+16.10%
1Y Return+42.94%+25.99%
3Y Return (annualized)-+18.29%
5Y Return (annualized)-+12.35%
Volatility (annualized)18.2%14.6%
Max Drawdown-13.3%-58.8%
Fund FamilyHarbor FundsVanguard (US)
CategoryEquityEquity
InceptionJun 4, 2025Nov 10, 2006

EPEM vs VYM Performance

Harbor Emerging Markets Equity ETF (EPEM) is a ETF from Harbor Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year EPEM returned +42.94% while VYM returned +25.99%. Year to date, EPEM is up 23.46% versus a gain of 16.10% for VYM.

Risk: Volatility and Drawdowns

EPEM has been the more volatile fund, with annualized monthly volatility of 18.2% 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 -13.3% for EPEM 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 0.74. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

EPEM charges 0.84% per year while VYM charges 0.04%. On a $10,000 position that is $84 vs $4 annually, a gap of $80 per year that compounds over a long holding period. On income, EPEM currently yields 2.94% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

EPEM and VYM share 1 holdings out of 599 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in EPEMWeight in VYMDifference
XP2.22%0.04%2.18%

Frequently Asked Questions

Which is cheaper, EPEM or VYM?

EPEM has an expense ratio of 0.84% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $80 per year of difference.

Which performed better, EPEM or VYM?

Over the past year EPEM returned +42.94% vs +25.99% for VYM, so EPEM leads on 1-year performance. Over the longest common window we track (1 years), EPEM annualized +43.28% vs +7.08% for VYM. Past performance does not guarantee future results.

Which is riskier, EPEM or VYM?

EPEM has been the more volatile fund at 18.2% annualized versus 14.6% for VYM. Worst drawdown: EPEM -13.3% vs VYM -58.8%.

Should I hold both EPEM and VYM?

EPEM and VYM have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between EPEM and VYM?

EPEM and VYM share 1 common holdings with a 0.0% weight overlap. Combined, they hold 599 unique securities.

Which pays a higher dividend, EPEM or VYM?

EPEM yields 2.94% while VYM yields 2.86%, so EPEM currently pays the higher dividend yield.

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