MEM vs VYM
Matthews Emerging Markets Equity Active ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. MEM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | MEM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.79% | 0.04% | |
| AUM | $53M | $79.0B | |
| Dividend Yield | 2.88% | 2.86% | |
| Holdings | 79 | 568 | |
| YTD Return | +18.62% | +15.80% | |
| 1Y Return | +36.67% | +26.12% | |
| 3Y Return (annualized) | +20.51% | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 18.0% | 14.6% | |
| Max Drawdown | -19.1% | -58.8% | |
| Fund Family | Matthews Asia Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 13, 2022 | Nov 10, 2006 |
MEM vs VYM Performance
Matthews Emerging Markets Equity Active ETF (MEM) is a ETF from Matthews Asia Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MEM returned +36.67% while VYM returned +26.12%. Year to date, MEM is up 18.62% versus a gain of 15.80% for VYM.
Over three years, MEM compounded at +20.51% per year against +18.25% for VYM. Across the full 4-year window we track, MEM has the edge at +18.34% annualized vs +7.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MEM has been the more volatile fund, with annualized monthly volatility of 18.0% 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 -19.1% for MEM 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MEM charges 0.79% per year while VYM charges 0.04%. On a $10,000 position that is $79 vs $4 annually, a gap of $75 per year that compounds over a long holding period. On income, MEM currently yields 2.88% against 2.86% for VYM.
Holdings Overlap
MEM and VYM share 1 holdings out of 629 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 MEM | Weight in VYM | Difference |
|---|---|---|---|
| BAP:BM | 1.10% | 0.10% | 1.00% |
Frequently Asked Questions
Which is cheaper, MEM or VYM?
MEM has an expense ratio of 0.79% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $75 per year of difference.
Which performed better, MEM or VYM?
Over the past year MEM returned +36.67% vs +26.12% for VYM, so MEM leads on 1-year performance. Over the longest common window we track (4 years), MEM annualized +18.34% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, MEM or VYM?
MEM has been the more volatile fund at 18.0% annualized versus 14.6% for VYM. Worst drawdown: MEM -19.1% vs VYM -58.8%.
Should I hold both MEM and VYM?
MEM and VYM have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MEM and VYM?
MEM and VYM share 1 common holdings with a 0.1% weight overlap. Combined, they hold 629 unique securities.
Which pays a higher dividend, MEM or VYM?
MEM yields 2.88% while VYM yields 2.86%, so MEM currently pays the higher dividend yield.
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