EWG vs VYM
iShares MSCI Germany ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | EWG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.04% | |
| AUM | $1.6B | $79.0B | |
| Dividend Yield | 2.01% | 2.86% | |
| Holdings | 58 | 568 | |
| YTD Return | +5.36% | +16.78% | |
| 1Y Return | +5.81% | +24.43% | |
| 3Y Return (annualized) | +18.44% | +18.60% | |
| 5Y Return (annualized) | +7.13% | +12.30% | |
| Volatility (annualized) | 23.1% | 14.6% | |
| Max Drawdown | -71.8% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 12, 1996 | Nov 10, 2006 |
EWG vs VYM Performance
iShares MSCI Germany ETF (EWG) 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 EWG returned +5.81% while VYM returned +24.43%. Year to date, EWG is up 5.36% versus a gain of 16.78% for VYM.
Over three years, EWG compounded at +18.44% per year against +18.60% for VYM; over five years the annualized figures are +7.13% and +12.30% respectively. Across the full 20-year window we track, VYM has the edge at +7.11% annualized vs +4.44%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EWG has been the more volatile fund, with annualized monthly volatility of 23.1% 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 -71.8% for EWG 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
EWG charges 0.49% per year while VYM charges 0.04%. On a $10,000 position that is $49 vs $4 annually, a gap of $45 per year that compounds over a long holding period. On income, EWG currently yields 2.01% against 2.86% for VYM.
Holdings Overlap
EWG and VYM share 1 holdings out of 610 unique holdings combined, representing a 1.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in EWG | Weight in VYM | Difference |
|---|---|---|---|
| MRK | 1.09% | 1.37% | 0.28% |
Frequently Asked Questions
Which is cheaper, EWG or VYM?
EWG has an expense ratio of 0.49% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $45 per year of difference.
Which performed better, EWG or VYM?
Over the past year EWG returned +5.81% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), EWG annualized +4.44% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, EWG or VYM?
EWG has been the more volatile fund at 23.1% annualized versus 14.6% for VYM. Worst drawdown: EWG -71.8% vs VYM -58.8%.
Should I hold both EWG and VYM?
EWG and VYM have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EWG and VYM?
EWG and VYM share 1 common holdings with a 1.1% weight overlap. Combined, they hold 610 unique securities.
Which pays a higher dividend, EWG or VYM?
EWG yields 2.01% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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