MFEM vs VYM
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. MFEM delivered stronger 1-year returns. MFEM offers more diversification with 701 holdings.
Side-by-Side Comparison
| Metric | MFEM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.04% | |
| AUM | $156M | $81.6B | |
| Dividend Yield | 2.39% | 2.24% | |
| Holdings | 701 | 616 | |
| YTD Return | +21.04% | +14.66% | |
| 1Y Return | +33.03% | +22.16% | |
| 3Y Return (annualized) | +20.26% | +18.72% | |
| 5Y Return (annualized) | +9.18% | +12.18% | |
| Volatility (annualized) | 17.7% | 14.6% | |
| Max Drawdown | -45.3% | -58.8% | |
| Fund Family | PIMCO (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 31, 2017 | Nov 10, 2006 |
MFEM vs VYM Performance
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) is a ETF from PIMCO (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MFEM returned +33.03% while VYM returned +22.16%. Year to date, MFEM is up 21.04% versus a gain of 14.66% for VYM.
Over three years, MFEM compounded at +20.26% per year against +18.72% for VYM; over five years the annualized figures are +9.18% and +12.18% respectively. Across the full 9-year window we track, VYM has the edge at +7.01% 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 14.6% 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 -45.3% for MFEM 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MFEM charges 0.49% per year while VYM charges 0.04%. On a $10,000 position that is $49 vs $4 annually, a gap of $45 per year that compounds over a long holding period. On income, MFEM currently yields 2.39% against 2.24% for VYM.
Holdings Overlap
MFEM and VYM share 1 holdings out of 1105 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in MFEM | Weight in VYM | Difference |
|---|---|---|---|
| SBLK:MH | 0.11% | 0.01% | 0.10% |
Frequently Asked Questions
Which is cheaper, MFEM or VYM?
MFEM has an expense ratio of 0.49% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $45 per year of difference.
Which performed better, MFEM or VYM?
Over the past year MFEM returned +33.03% vs +22.16% for VYM, so MFEM leads on 1-year performance. Over the longest common window we track (9 years), MFEM annualized +6.77% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, MFEM or VYM?
MFEM has been the more volatile fund at 17.7% annualized versus 14.6% for VYM. Worst drawdown: MFEM -45.3% vs VYM -58.8%.
Should I hold both MFEM and VYM?
MFEM and VYM have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MFEM and VYM?
MFEM and VYM share 1 common holdings with a 0.0% weight overlap. Combined, they hold 1105 unique securities.
Which pays a higher dividend, MFEM or VYM?
MFEM yields 2.39% while VYM yields 2.24%, so MFEM currently pays the higher dividend yield.
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