LDEM vs VYM
iShares ESG MSCI EM Leaders 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 558 holdings.
Side-by-Side Comparison
| Metric | LDEM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.17% | 0.04% | |
| AUM | $32M | $79.0B | |
| Dividend Yield | 2.93% | 2.86% | |
| Holdings | 459 | 568 | |
| YTD Return | +3.51% | +15.80% | |
| 1Y Return | +13.16% | +26.12% | |
| 3Y Return (annualized) | +13.91% | +18.25% | |
| 5Y Return (annualized) | +2.68% | +12.51% | |
| Volatility (annualized) | 18.4% | 14.6% | |
| Max Drawdown | -40.8% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 5, 2020 | Nov 10, 2006 |
LDEM vs VYM Performance
iShares ESG MSCI EM Leaders ETF (LDEM) 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 LDEM returned +13.16% while VYM returned +26.12%. Year to date, LDEM is up 3.51% versus a gain of 15.80% for VYM.
Over three years, LDEM compounded at +13.91% per year against +18.25% for VYM; over five years the annualized figures are +2.68% and +12.51% respectively. Across the full 7-year window we track, VYM has the edge at +7.07% annualized vs +4.84%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
LDEM has been the more volatile fund, with annualized monthly volatility of 18.4% 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 -40.8% for LDEM 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
LDEM charges 0.17% per year while VYM charges 0.04%. On a $10,000 position that is $17 vs $4 annually, a gap of $13 per year that compounds over a long holding period. On income, LDEM currently yields 2.93% against 2.86% for VYM.
Holdings Overlap
LDEM and VYM share 1 holdings out of 980 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in LDEM | Weight in VYM | Difference |
|---|---|---|---|
| BAP:BM | 0.57% | 0.10% | 0.47% |
Frequently Asked Questions
Which is cheaper, LDEM or VYM?
LDEM has an expense ratio of 0.17% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, LDEM or VYM?
Over the past year LDEM returned +13.16% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (7 years), LDEM annualized +4.84% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, LDEM or VYM?
LDEM has been the more volatile fund at 18.4% annualized versus 14.6% for VYM. Worst drawdown: LDEM -40.8% vs VYM -58.8%.
Should I hold both LDEM and VYM?
LDEM 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 LDEM and VYM?
LDEM and VYM share 1 common holdings with a 0.1% weight overlap. Combined, they hold 980 unique securities.
Which pays a higher dividend, LDEM or VYM?
LDEM yields 2.93% while VYM yields 2.86%, so LDEM currently pays the higher dividend yield.
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