MFEM vs VOO
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. MFEM delivered stronger 1-year returns. MFEM offers more diversification with 701 holdings.
Side-by-Side Comparison
| Metric | MFEM | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.03% | |
| AUM | $156M | $997.4B | |
| Dividend Yield | 2.39% | 1.08% | |
| Holdings | 701 | 509 | |
| YTD Return | +21.04% | +12.25% | |
| 1Y Return | +33.03% | +20.92% | |
| 3Y Return (annualized) | +20.26% | +21.79% | |
| 5Y Return (annualized) | +9.18% | +13.05% | |
| Volatility (annualized) | 17.7% | 14.1% | |
| Max Drawdown | -45.3% | -34.3% | |
| Fund Family | PIMCO (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 31, 2017 | Sep 7, 2010 |
MFEM vs VOO Performance
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) is a ETF from PIMCO (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year MFEM returned +33.03% while VOO returned +20.92%. Year to date, MFEM is up 21.04% versus a gain of 12.25% for VOO.
Over three years, MFEM compounded at +20.26% per year against +21.79% for VOO; over five years the annualized figures are +9.18% and +13.05% respectively. Across the full 9-year window we track, VOO has the edge at +13.45% annualized vs +6.77%. 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 14.1% for VOO. 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 -34.3% for VOO. 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MFEM charges 0.49% per year while VOO charges 0.03%. On a $10,000 position that is $49 vs $3 annually, a gap of $46 per year that compounds over a long holding period. On income, MFEM currently yields 2.39% against 1.08% for VOO.
Holdings Overlap
MFEM and VOO share 0 holdings out of 1008 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 VOO?
MFEM has an expense ratio of 0.49% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, MFEM or VOO?
Over the past year MFEM returned +33.03% vs +20.92% for VOO, so MFEM leads on 1-year performance. Over the longest common window we track (9 years), MFEM annualized +6.77% vs +13.45% for VOO. Past performance does not guarantee future results.
Which is riskier, MFEM or VOO?
MFEM has been the more volatile fund at 17.7% annualized versus 14.1% for VOO. Worst drawdown: MFEM -45.3% vs VOO -34.3%.
Should I hold both MFEM and VOO?
MFEM and VOO have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MFEM and VOO?
MFEM and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1008 unique securities.
Which pays a higher dividend, MFEM or VOO?
MFEM yields 2.39% while VOO yields 1.08%, so MFEM currently pays the higher dividend yield.
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