RAYE vs VYM
Rayliant Quantamental Emerging Market ex-China Equity 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 | RAYE | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.88% | 0.04% | |
| AUM | $37M | $79.0B | |
| Dividend Yield | 2.93% | 2.86% | |
| Holdings | 119 | 568 | |
| YTD Return | +22.31% | +15.80% | |
| 1Y Return | +16.38% | +26.12% | |
| 3Y Return (annualized) | +15.15% | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 15.7% | 14.6% | |
| Max Drawdown | -26.9% | -58.8% | |
| Fund Family | The Advisors Inner Circle Fund | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 15, 2021 | Nov 10, 2006 |
RAYE vs VYM Performance
Rayliant Quantamental Emerging Market ex-China Equity ETF (RAYE) is a ETF from The Advisors Inner Circle Fund and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year RAYE returned +16.38% while VYM returned +26.12%. Year to date, RAYE is up 22.31% versus a gain of 15.80% for VYM.
Over three years, RAYE compounded at +15.15% per year against +18.25% for VYM. Across the full 4-year window we track, VYM has the edge at +7.07% annualized vs +5.35%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RAYE has been the more volatile fund, with annualized monthly volatility of 15.7% 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 -26.9% for RAYE 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
RAYE charges 0.88% per year while VYM charges 0.04%. On a $10,000 position that is $88 vs $4 annually, a gap of $84 per year that compounds over a long holding period. On income, RAYE currently yields 2.93% against 2.86% for VYM.
Holdings Overlap
RAYE and VYM share 1 holdings out of 655 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in RAYE | Weight in VYM | Difference |
|---|---|---|---|
| BAP:BM | 0.66% | 0.10% | 0.56% |
Frequently Asked Questions
Which is cheaper, RAYE or VYM?
RAYE has an expense ratio of 0.88% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $84 per year of difference.
Which performed better, RAYE or VYM?
Over the past year RAYE returned +16.38% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), RAYE annualized +5.35% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, RAYE or VYM?
RAYE has been the more volatile fund at 15.7% annualized versus 14.6% for VYM. Worst drawdown: RAYE -26.9% vs VYM -58.8%.
Should I hold both RAYE and VYM?
RAYE and VYM have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RAYE and VYM?
RAYE and VYM share 1 common holdings with a 0.1% weight overlap. Combined, they hold 655 unique securities.
Which pays a higher dividend, RAYE or VYM?
RAYE yields 2.93% while VYM yields 2.86%, so RAYE currently pays the higher dividend yield.
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