HYEM vs VOO
VanEck Emerging Markets High Yield Bond ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. HYEM offers more diversification with 562 holdings.
Side-by-Side Comparison
| Metric | HYEM | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.03% | |
| AUM | $522M | $997.4B | |
| Dividend Yield | 6.76% | 1.08% | |
| Holdings | 562 | 509 | |
| YTD Return | +4.64% | +12.25% | |
| 1Y Return | +7.22% | +20.92% | |
| 3Y Return (annualized) | +11.10% | +21.79% | |
| 5Y Return (annualized) | +3.22% | +13.05% | |
| Volatility (annualized) | 8.6% | 14.1% | |
| Max Drawdown | -39.3% | -34.3% | |
| Fund Family | VanEck | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 8, 2012 | Sep 7, 2010 |
HYEM vs VOO Performance
VanEck Emerging Markets High Yield Bond ETF (HYEM) is a ETF from VanEck and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year HYEM returned +7.22% while VOO returned +20.92%. Year to date, HYEM is up 4.64% versus a gain of 12.25% for VOO.
Over three years, HYEM compounded at +11.10% per year against +21.79% for VOO; over five years the annualized figures are +3.22% and +13.05% respectively. Across the full 14-year window we track, VOO has the edge at +13.45% annualized vs +0.87%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% 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 -34.3% for VOO. 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
HYEM charges 0.40% per year while VOO charges 0.03%. On a $10,000 position that is $40 vs $3 annually, a gap of $37 per year that compounds over a long holding period. On income, HYEM currently yields 6.76% against 1.08% for VOO.
Holdings Overlap
HYEM and VOO share 0 holdings out of 825 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 VOO?
HYEM has an expense ratio of 0.40% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $37 per year of difference.
Which performed better, HYEM or VOO?
Over the past year HYEM returned +7.22% vs +20.92% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (14 years), HYEM annualized +0.87% vs +13.45% for VOO. Past performance does not guarantee future results.
Which is riskier, HYEM or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 8.6% for HYEM. Worst drawdown: HYEM -39.3% vs VOO -34.3%.
Should I hold both HYEM and VOO?
HYEM and VOO 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 HYEM and VOO?
HYEM and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 825 unique securities.
Which pays a higher dividend, HYEM or VOO?
HYEM yields 6.76% while VOO yields 1.08%, so HYEM currently pays the higher dividend yield.
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