HEEM vs VTI
iShares Currency Hedged MSCI Emerging Markets ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, HEEM or VTI?
Each has led over a different period.
VTI has a lower expense ratio. HEEM led over 1Y and 3Y, VTI over 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | HEEM | VTI |
|---|---|---|
| Expense Ratio | 0.72% | 0.03%Best |
| AUM | $288M | $666.9B |
| Dividend Yield | 1.72% | 1.03% |
| Holdings | 1,327 | 3,543 |
| YTD Return | +16.37%Best | +11.06% |
| 1Y Return | +24.93%Best | +15.41% |
| 3Y Return (annualized) | +21.88%Best | +20.48% |
| 5Y Return (annualized) | +9.21% | +11.52%Best |
| Volatility (annualized) | 14.1%Best | 15.3% |
| Max Drawdown | -33.5%Best | -35.0% |
| $10,000 over 5 years | $15,535 | $17,249Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Sep 23, 2014 | May 24, 2001 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 25, 2014 to Sep 16, 2026 (12 years).
HEEM vs VTI growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 12 years both funds cover.
HEEM vs VTI Performance
iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) is an ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year HEEM returned +24.93% while VTI returned +15.41%. Year to date, HEEM is up 16.37% versus a gain of 11.06% for VTI.
Over three years, HEEM compounded at +21.88% per year against +20.48% for VTI; over five years the annualized figures are +9.21% and +11.52% respectively. Across the full 12-year window we track, VTI has the edge at +12.19% annualized vs +7.56%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.1% for HEEM. 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 -33.5% for HEEM and -35.0% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HEEM charges 0.72% per year while VTI charges 0.03%. On a $10,000 position that is $72 vs $3 annually, a gap of $69 per year that compounds over a long holding period. On income, HEEM currently yields 1.72% against 1.03% for VTI.
Holdings Overlap
We hold position weights for 2 holdings in HEEM and 3,463 in VTI, totalling 99.9% and 98.1% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 2 positions we hold weights for in HEEM and 3,463 in VTI, against full books of 1,327 and 3,543.
You are not choosing between two funds in isolation.
Whichever of HEEM and VTI you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, HEEM or VTI?
HEEM has an expense ratio of 0.72% while VTI charges 0.03%. VTI is the cheaper option, by $69 a year on a $10,000 investment.
Which performed better, HEEM or VTI?
Over the past year HEEM returned +24.93% vs +15.41% for VTI, so HEEM leads on 1-year performance. Over the longest common window we track (12 years), HEEM annualized +7.56% vs +12.19% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, HEEM or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 14.1% for HEEM. Worst drawdown: HEEM -33.5% vs VTI -35.0%.
Should I hold both HEEM and VTI?
HEEM and VTI have a monthly-return correlation of 0.70, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, HEEM or VTI?
HEEM yields 1.72% while VTI yields 1.03%, so HEEM currently pays the higher dividend yield.
Is VTI better than HEEM?
VTI has a lower expense ratio. HEEM led over 1Y and 3Y, VTI over 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.