KWT vs VYM
iShares MSCI Kuwait ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | KWT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.74% | 0.04% | |
| AUM | $68M | $81.6B | |
| Dividend Yield | 5.58% | 2.24% | |
| Holdings | 41 | 616 | |
| YTD Return | -2.37% | +16.42% | |
| 1Y Return | -1.96% | +24.22% | |
| 3Y Return (annualized) | +9.44% | +19.03% | |
| 5Y Return (annualized) | +7.95% | +12.21% | |
| Volatility (annualized) | 13.7% | 14.6% | |
| Max Drawdown | -24.4% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 1, 2020 | Nov 10, 2006 |
KWT vs VYM Performance
iShares MSCI Kuwait ETF (KWT) 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 KWT returned -1.96% while VYM returned +24.22%. Year to date, KWT is down 2.37% versus a gain of 16.42% for VYM.
Over three years, KWT compounded at +9.44% per year against +19.03% for VYM; over five years the annualized figures are +7.95% and +12.21% respectively. Across the full 6-year window we track, KWT has the edge at +11.85% annualized vs +7.10%. 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 13.7% for KWT. 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 -24.4% for KWT 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KWT charges 0.74% per year while VYM charges 0.04%. On a $10,000 position that is $74 vs $4 annually, a gap of $70 per year that compounds over a long holding period. On income, KWT currently yields 5.58% against 2.24% for VYM.
Holdings Overlap
KWT and VYM share 0 holdings out of 639 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, KWT or VYM?
KWT has an expense ratio of 0.74% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $70 per year of difference.
Which performed better, KWT or VYM?
Over the past year KWT returned -1.96% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), KWT annualized +11.85% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, KWT or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.7% for KWT. Worst drawdown: KWT -24.4% vs VYM -58.8%.
Should I hold both KWT and VYM?
KWT and VYM 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 KWT and VYM?
KWT and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 639 unique securities.
Which pays a higher dividend, KWT or VYM?
KWT yields 5.58% while VYM yields 2.24%, so KWT currently pays the higher dividend yield.
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