Quick Verdict

VYM has a lower expense ratio. JHEM delivered stronger 1-year returns. JHEM offers more diversification with 945 holdings.

Lower Fees: VYMHigher Returns: JHEMMore Diversified: JHEM

Side-by-Side Comparison

MetricJHEMVYMWinner
Expense Ratio0.49%0.04%
AUM$987M$79.0B
Dividend Yield1.78%2.86%
Holdings956568
YTD Return+17.59%+15.80%
1Y Return+34.86%+26.12%
3Y Return (annualized)+19.65%+18.25%
5Y Return (annualized)+8.08%+12.51%
Volatility (annualized)17.8%14.6%
Max Drawdown-35.0%-58.8%
Fund FamilyJohn Hancock Investment ManagementVanguard (US)
CategoryEquityEquity
InceptionSep 27, 2018Nov 10, 2006

JHEM vs VYM Performance

John Hancock Multifactor Emerging Markets ETF (JHEM) is a ETF from John Hancock Investment Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year JHEM returned +34.86% while VYM returned +26.12%. Year to date, JHEM is up 17.59% versus a gain of 15.80% for VYM.

Over three years, JHEM compounded at +19.65% per year against +18.25% for VYM; over five years the annualized figures are +8.08% and +12.51% respectively. Across the full 8-year window we track, JHEM has the edge at +7.79% annualized vs +7.07%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

JHEM has been the more volatile fund, with annualized monthly volatility of 17.8% 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 -35.0% for JHEM 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 0.70. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

JHEM charges 0.49% per year while VYM charges 0.04%. On a $10,000 position that is $49 vs $4 annually, a gap of $45 per year that compounds over a long holding period. On income, JHEM currently yields 1.78% against 2.86% for VYM.

Holdings Overlap

0.1%overlap

JHEM and VYM share 2 holdings out of 1501 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in JHEMWeight in VYMDifference
TEL0.04%0.30%0.26%
HAL0.06%0.13%0.07%

Frequently Asked Questions

Which is cheaper, JHEM or VYM?

JHEM has an expense ratio of 0.49% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $45 per year of difference.

Which performed better, JHEM or VYM?

Over the past year JHEM returned +34.86% vs +26.12% for VYM, so JHEM leads on 1-year performance. Over the longest common window we track (8 years), JHEM annualized +7.79% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, JHEM or VYM?

JHEM has been the more volatile fund at 17.8% annualized versus 14.6% for VYM. Worst drawdown: JHEM -35.0% vs VYM -58.8%.

Should I hold both JHEM and VYM?

JHEM and VYM have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between JHEM and VYM?

JHEM and VYM share 2 common holdings with a 0.1% weight overlap. Combined, they hold 1501 unique securities.

Which pays a higher dividend, JHEM or VYM?

JHEM yields 1.78% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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