HEDJ vs VYM
WisdomTree Europe Hedged Equity Fund 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 616 holdings.
Side-by-Side Comparison
| Metric | HEDJ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.58% | 0.04% | |
| AUM | $1.9B | $81.6B | |
| Dividend Yield | 1.78% | 2.24% | |
| Holdings | 133 | 616 | |
| YTD Return | +8.32% | +15.60% | |
| 1Y Return | +15.59% | +23.48% | |
| 3Y Return (annualized) | +15.23% | +19.07% | |
| 5Y Return (annualized) | +10.58% | +12.50% | |
| Volatility (annualized) | 15.5% | 14.6% | |
| Max Drawdown | -38.2% | -58.8% | |
| Fund Family | WisdomTree Investments | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 31, 2009 | Nov 10, 2006 |
HEDJ vs VYM Performance
WisdomTree Europe Hedged Equity Fund (HEDJ) is a ETF from WisdomTree Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year HEDJ returned +15.59% while VYM returned +23.48%. Year to date, HEDJ is up 8.32% versus a gain of 15.60% for VYM.
Over three years, HEDJ compounded at +15.23% per year against +19.07% for VYM; over five years the annualized figures are +10.58% and +12.50% respectively. Across the full 17-year window we track, VYM has the edge at +7.05% annualized vs +6.44%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HEDJ has been the more volatile fund, with annualized monthly volatility of 15.5% 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 -38.2% for HEDJ 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HEDJ charges 0.58% per year while VYM charges 0.04%. On a $10,000 position that is $58 vs $4 annually, a gap of $54 per year that compounds over a long holding period. On income, HEDJ currently yields 1.78% against 2.24% for VYM.
Holdings Overlap
HEDJ and VYM share 0 holdings out of 733 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, HEDJ or VYM?
HEDJ has an expense ratio of 0.58% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $54 per year of difference.
Which performed better, HEDJ or VYM?
Over the past year HEDJ returned +15.59% vs +23.48% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (17 years), HEDJ annualized +6.44% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, HEDJ or VYM?
HEDJ has been the more volatile fund at 15.5% annualized versus 14.6% for VYM. Worst drawdown: HEDJ -38.2% vs VYM -58.8%.
Should I hold both HEDJ and VYM?
HEDJ and VYM have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HEDJ and VYM?
HEDJ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 733 unique securities.
Which pays a higher dividend, HEDJ or VYM?
HEDJ yields 1.78% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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