MFEM vs VGI
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF vs Virtus Global Multi-Sector Income Fund
Quick Verdict
MFEM has a lower expense ratio. MFEM delivered stronger 1-year returns. MFEM offers more diversification with 701 holdings.
Side-by-Side Comparison
| Metric | MFEM | VGI | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 1.74% | |
| AUM | $156M | $88M | |
| Dividend Yield | 2.39% | 12.31% | |
| Holdings | 701 | 646 | |
| YTD Return | +22.70% | +1.61% | |
| 1Y Return | +34.93% | +5.13% | |
| 3Y Return (annualized) | +20.54% | +11.90% | |
| 5Y Return (annualized) | +8.69% | +2.02% | |
| Volatility (annualized) | 17.7% | 14.2% | |
| Max Drawdown | -45.3% | -63.3% | |
| Fund Family | PIMCO (US) | Virtus Investment Partners | |
| Category | Equity | Fixed Income | |
| Inception | Aug 31, 2017 | Feb 23, 2012 |
MFEM vs VGI Performance
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) is a ETF from PIMCO (US) and Virtus Global Multi-Sector Income Fund (VGI) is a ETF from Virtus Investment Partners. Over the past year MFEM returned +34.93% while VGI returned +5.13%. Year to date, MFEM is up 22.70% versus a gain of 1.61% for VGI.
Over three years, MFEM compounded at +20.54% per year against +11.90% for VGI; over five years the annualized figures are +8.69% and +2.02% respectively. Across the full 9-year window we track, MFEM has the edge at +6.94% annualized vs -2.37%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MFEM has been the more volatile fund, with annualized monthly volatility of 17.7% compared with 14.2% for VGI. 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 -45.3% for MFEM and -63.3% for VGI. 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MFEM charges 0.49% per year while VGI charges 1.74%. On a $10,000 position that is $49 vs $174 annually, a gap of $125 per year that compounds over a long holding period. On income, MFEM currently yields 2.39% against 12.31% for VGI.
Holdings Overlap
MFEM and VGI share 0 holdings out of 937 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, MFEM or VGI?
MFEM has an expense ratio of 0.49% while VGI charges 1.74%. MFEM is the cheaper option. On a $10,000 investment, that is $125 per year of difference.
Which performed better, MFEM or VGI?
Over the past year MFEM returned +34.93% vs +5.13% for VGI, so MFEM leads on 1-year performance. Over the longest common window we track (9 years), MFEM annualized +6.94% vs -2.37% for VGI. Past performance does not guarantee future results.
Which is riskier, MFEM or VGI?
MFEM has been the more volatile fund at 17.7% annualized versus 14.2% for VGI. Worst drawdown: MFEM -45.3% vs VGI -63.3%.
Should I hold both MFEM and VGI?
MFEM and VGI have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MFEM and VGI?
MFEM and VGI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 937 unique securities.
Which pays a higher dividend, MFEM or VGI?
MFEM yields 2.39% while VGI yields 12.31%, so VGI currently pays the higher dividend yield.
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