PCEM vs VYM
Polen Capital Emerging Markets ex-China Growth ETF 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 | PCEM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.00% | 0.04% | |
| AUM | $3M | $79.0B | |
| Dividend Yield | 0.34% | 2.86% | |
| Holdings | 35 | 568 | |
| YTD Return | +4.05% | +16.16% | |
| 1Y Return | +20.55% | +26.05% | |
| 3Y Return (annualized) | - | +18.43% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 15.5% | 14.6% | |
| Max Drawdown | -19.9% | -58.8% | |
| Fund Family | Polen Capital | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 10, 2024 | Nov 10, 2006 |
PCEM vs VYM Performance
Polen Capital Emerging Markets ex-China Growth ETF (PCEM) is a ETF from Polen Capital and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PCEM returned +20.55% while VYM returned +26.05%. Year to date, PCEM is up 4.05% versus a gain of 16.16% for VYM.
Risk: Volatility and Drawdowns
PCEM has been the more volatile fund, with annualized monthly volatility of 15.5% 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 -19.9% for PCEM 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PCEM charges 1.00% per year while VYM charges 0.04%. On a $10,000 position that is $100 vs $4 annually, a gap of $96 per year that compounds over a long holding period. On income, PCEM currently yields 0.34% against 2.86% for VYM.
Holdings Overlap
PCEM and VYM share 0 holdings out of 593 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, PCEM or VYM?
PCEM has an expense ratio of 1.00% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $96 per year of difference.
Which performed better, PCEM or VYM?
Over the past year PCEM returned +20.55% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), PCEM annualized +12.35% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, PCEM or VYM?
PCEM has been the more volatile fund at 15.5% annualized versus 14.6% for VYM. Worst drawdown: PCEM -19.9% vs VYM -58.8%.
Should I hold both PCEM and VYM?
PCEM and VYM have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PCEM and VYM?
PCEM and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 593 unique securities.
Which pays a higher dividend, PCEM or VYM?
PCEM yields 0.34% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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