HYEM vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricHYEMSCHDWinner
Expense Ratio0.40%0.06%
AUM$523M$103.7B
Dividend Yield6.52%3.31%
Holdings528104
YTD Return+3.92%+25.58%
1Y Return+6.48%+31.06%
3Y Return (annualized)+10.44%+15.55%
5Y Return (annualized)+3.05%+9.61%
Volatility (annualized)8.6%13.6%
Max Drawdown-39.3%-33.4%
Fund FamilyVanEckCharles Schwab Asset Management
CategoryFixed IncomeEquity
InceptionMay 8, 2012Oct 20, 2011

HYEM vs SCHD Performance

VanEck Emerging Markets High Yield Bond ETF (HYEM) is a ETF from VanEck and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year HYEM returned +6.48% while SCHD returned +31.06%. Year to date, HYEM is up 3.92% versus a gain of 25.58% for SCHD.

Over three years, HYEM compounded at +10.44% per year against +15.55% for SCHD; over five years the annualized figures are +3.05% and +9.61% respectively. Across the full 14-year window we track, SCHD has the edge at +11.46% annualized vs +0.82%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 8.6% for HYEM. 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 -39.3% for HYEM and -33.4% for SCHD. 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

HYEM charges 0.40% per year while SCHD charges 0.06%. On a $10,000 position that is $40 vs $6 annually, a gap of $34 per year that compounds over a long holding period. On income, HYEM currently yields 6.52% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

HYEM and SCHD share 0 holdings out of 108 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, HYEM or SCHD?

HYEM has an expense ratio of 0.40% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $34 per year of difference.

Which performed better, HYEM or SCHD?

Over the past year HYEM returned +6.48% vs +31.06% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (14 years), HYEM annualized +0.82% vs +11.46% for SCHD. Past performance does not guarantee future results.

Which is riskier, HYEM or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 8.6% for HYEM. Worst drawdown: HYEM -39.3% vs SCHD -33.4%.

Should I hold both HYEM and SCHD?

HYEM and SCHD have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between HYEM and SCHD?

HYEM and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 108 unique securities.

Which pays a higher dividend, HYEM or SCHD?

HYEM yields 6.52% while SCHD yields 3.31%, so HYEM currently pays the higher dividend yield.

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