MXE vs VYM
Mexico Equity and Income Fund, Inc vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | MXE | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 2.32% | 0.04% | |
| AUM | $72M | $79.0B | |
| Dividend Yield | 1.44% | 2.86% | |
| Holdings | 30 | 568 | |
| YTD Return | +8.39% | +16.10% | |
| 1Y Return | +25.31% | +25.99% | |
| 3Y Return (annualized) | +12.35% | +18.29% | |
| 5Y Return (annualized) | +3.64% | +12.35% | |
| Volatility (annualized) | 23.6% | 14.6% | |
| Max Drawdown | -58.9% | -58.8% | |
| Fund Family | The Mexico Equity and Income Fund, Inc. | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 15, 1990 | Nov 10, 2006 |
MXE vs VYM Performance
Mexico Equity and Income Fund, Inc (MXE) is a ETF from The Mexico Equity and Income Fund, Inc. and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MXE returned +25.31% while VYM returned +25.99%. Year to date, MXE is up 8.39% versus a gain of 16.10% for VYM.
Over three years, MXE compounded at +12.35% per year against +18.29% for VYM; over five years the annualized figures are +3.64% and +12.35% respectively. Across the full 13-year window we track, VYM has the edge at +7.08% annualized vs +1.66%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MXE has been the more volatile fund, with annualized monthly volatility of 23.6% 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 -58.9% for MXE 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MXE charges 2.32% per year while VYM charges 0.04%. On a $10,000 position that is $232 vs $4 annually, a gap of $228 per year that compounds over a long holding period. On income, MXE currently yields 1.44% against 2.86% for VYM.
Holdings Overlap
MXE and VYM share 0 holdings out of 586 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, MXE or VYM?
MXE has an expense ratio of 2.32% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $228 per year of difference.
Which performed better, MXE or VYM?
Over the past year MXE returned +25.31% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (13 years), MXE annualized +1.66% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, MXE or VYM?
MXE has been the more volatile fund at 23.6% annualized versus 14.6% for VYM. Worst drawdown: MXE -58.9% vs VYM -58.8%.
Should I hold both MXE and VYM?
MXE and VYM have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MXE and VYM?
MXE and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 586 unique securities.
Which pays a higher dividend, MXE or VYM?
MXE yields 1.44% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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