LDEM vs VYM

LDEM vs VYM

Which is better, LDEM or VYM?

Large Cap Blend against Large Cap Value.

VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 30.1%.

Lower Fees: VYMHigher Returns: VYMLess Concentrated: VYM

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricLDEMVYM
Expense Ratio0.16%0.04%Best
AUM$34M$81.6B
Dividend Yield2.87%2.22%
Holdings461613
YTD Return+2.32%+11.71%Best
1Y Return+4.92%+16.24%Best
3Y Return (annualized)+14.71%+17.24%Best
5Y Return (annualized)+2.60%+11.86%Best
Volatility (annualized)18.3%15.2%Best
Max Drawdown-40.8%-35.5%Best
$10,000 over 5 years$11,369$17,514Best
Top 10 Weight30.1%26.1%Best
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Value
InceptionFeb 5, 2020Nov 10, 2006

Volatility and max drawdown are measured over the window both funds cover: Feb 12, 2020 to Sep 16, 2026 (6.6 years).

LDEM vs VYM growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 6.6 years both funds cover.

LDEM vs VYM Performance

iShares ESG MSCI EM Leaders ETF (LDEM) is an ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year LDEM returned +4.92% while VYM returned +16.24%. Year to date, LDEM is up 2.32% versus a gain of 11.71% for VYM.

Over three years, LDEM compounded at +14.71% per year against +17.24% for VYM; over five years the annualized figures are +2.60% and +11.86% respectively. Across the full 7-year window we track, VYM has the edge at +10.93% annualized vs +4.58%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

LDEM has been the more volatile fund, with annualized monthly volatility of 18.3% compared with 15.2% 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 -35.5% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.65. They move together some of the time, and apart the rest.

Fees and Cost Over Time

LDEM charges 0.16% per year while VYM charges 0.04%. On a $10,000 position that is $16 vs $4 annually, a gap of $12 per year that compounds over a long holding period. On income, LDEM currently yields 2.87% against 2.22% for VYM.

Holdings Overlap

LDEM already in VYM0.5%
VYM already in LDEM0.1%

0.5% of LDEM's money is in holdings VYM also owns. 0.1% of VYM's money is in holdings LDEM also owns.

We cannot see either book well enough to say how much of this pair is duplicated.

1 positions in common, counted across the 417 positions we hold weights for in LDEM and 557 in VYM, against full books of 461 and 613.

What only one of them owns

Our book lists 527 positions for VYM that do not appear in our book for LDEM (97.0% of the fund), and 2 for LDEM that do not appear in VYM (0.8%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in LDEMWeight in VYMDifference
BAPCredicorp Ltd - Common0.52%0.11%0.41%

You are not choosing between two funds in isolation.

Whichever of LDEM and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

LDEMVYM

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, LDEM or VYM?

LDEM has an expense ratio of 0.16% while VYM charges 0.04%. VYM is the cheaper option, by $12 a year on a $10,000 investment.

Which performed better, LDEM or VYM?

Over the past year LDEM returned +4.92% vs +16.24% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (7 years), LDEM annualized +4.58% vs +10.93% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, LDEM or VYM?

LDEM has been the more volatile fund at 18.3% annualized versus 15.2% for VYM. Worst drawdown: LDEM -40.8% vs VYM -35.5%.

Should I hold both LDEM and VYM?

LDEM and VYM have a monthly-return correlation of 0.65, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, LDEM or VYM?

LDEM yields 2.87% while VYM yields 2.22%, so LDEM currently pays the higher dividend yield.

Is VYM better than LDEM?

VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 30.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.