FFEM vs VYM
Fidelity Fundamental Emerging Markets ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. FFEM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | FFEM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.04% | |
| AUM | $62M | $81.6B | |
| Dividend Yield | 1.26% | 2.24% | |
| Holdings | 118 | 616 | |
| YTD Return | +22.14% | +16.42% | |
| 1Y Return | +43.25% | +24.22% | |
| 3Y Return (annualized) | - | +19.03% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 18.0% | 14.6% | |
| Max Drawdown | -16.3% | -58.8% | |
| Fund Family | Fidelity Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 19, 2024 | Nov 10, 2006 |
FFEM vs VYM Performance
Fidelity Fundamental Emerging Markets ETF (FFEM) is a ETF from Fidelity Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FFEM returned +43.25% while VYM returned +24.22%. Year to date, FFEM is up 22.14% versus a gain of 16.42% for VYM.
Risk: Volatility and Drawdowns
FFEM has been the more volatile fund, with annualized monthly volatility of 18.0% 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 -16.3% for FFEM 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FFEM charges 0.60% per year while VYM charges 0.04%. On a $10,000 position that is $60 vs $4 annually, a gap of $56 per year that compounds over a long holding period. On income, FFEM currently yields 1.26% against 2.24% for VYM.
Holdings Overlap
FFEM and VYM share 1 holdings out of 708 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FFEM | Weight in VYM | Difference |
|---|---|---|---|
| BAP | 1.27% | 0.11% | 1.16% |
Frequently Asked Questions
Which is cheaper, FFEM or VYM?
FFEM has an expense ratio of 0.60% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $56 per year of difference.
Which performed better, FFEM or VYM?
Over the past year FFEM returned +43.25% vs +24.22% for VYM, so FFEM leads on 1-year performance. Over the longest common window we track (2 years), FFEM annualized +36.68% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, FFEM or VYM?
FFEM has been the more volatile fund at 18.0% annualized versus 14.6% for VYM. Worst drawdown: FFEM -16.3% vs VYM -58.8%.
Should I hold both FFEM and VYM?
FFEM and VYM have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FFEM and VYM?
FFEM and VYM share 1 common holdings with a 0.1% weight overlap. Combined, they hold 708 unique securities.
Which pays a higher dividend, FFEM or VYM?
FFEM yields 1.26% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.