HEEM vs VYM
iShares Currency Hedged MSCI Emerging Markets ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. HEEM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | HEEM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.72% | 0.04% | |
| AUM | $276M | $79.0B | |
| Dividend Yield | 1.75% | 2.86% | |
| Holdings | 1,327 | 568 | |
| YTD Return | +16.11% | +16.10% | |
| 1Y Return | +33.88% | +25.99% | |
| 3Y Return (annualized) | +21.28% | +18.29% | |
| 5Y Return (annualized) | +8.80% | +12.35% | |
| Volatility (annualized) | 14.2% | 14.6% | |
| Max Drawdown | -33.5% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 23, 2014 | Nov 10, 2006 |
HEEM vs VYM Performance
iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) 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 HEEM returned +33.88% while VYM returned +25.99%. Year to date, HEEM is up 16.11% versus a gain of 16.10% for VYM.
Over three years, HEEM compounded at +21.28% per year against +18.29% for VYM; over five years the annualized figures are +8.80% and +12.35% respectively. Across the full 12-year window we track, HEEM has the edge at +7.60% annualized vs +7.08%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 14.2% 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 -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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HEEM charges 0.72% per year while VYM charges 0.04%. On a $10,000 position that is $72 vs $4 annually, a gap of $68 per year that compounds over a long holding period. On income, HEEM currently yields 1.75% against 2.86% for VYM.
Holdings Overlap
HEEM and VYM share 0 holdings out of 587 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, HEEM or VYM?
HEEM has an expense ratio of 0.72% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $68 per year of difference.
Which performed better, HEEM or VYM?
Over the past year HEEM returned +33.88% vs +25.99% for VYM, so HEEM leads on 1-year performance. Over the longest common window we track (12 years), HEEM annualized +7.60% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, HEEM or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 14.2% for HEEM. Worst drawdown: HEEM -33.5% vs VYM -58.8%.
Should I hold both HEEM and VYM?
HEEM and VYM have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HEEM and VYM?
HEEM and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 587 unique securities.
Which pays a higher dividend, HEEM or VYM?
HEEM yields 1.75% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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