RFEM vs VYM

RFEM vs VYM

Which is better, RFEM or VYM?

Large Cap Blend against Large Cap Value.

VYM has a lower expense ratio. RFEM led over 1Y and 3Y, VYM over 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 38.4%.

Lower Fees: VYMHigher Returns: splitLess Concentrated: VYM

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricRFEMVYM
Expense Ratio0.99%0.04%Best
AUM$84M$81.6B
Dividend Yield2.67%2.24%
Holdings119613
YTD Return+25.92%Best+14.82%
1Y Return+40.66%Best+20.84%
3Y Return (annualized)+26.08%Best+18.64%
5Y Return (annualized)+10.88%+12.28%Best
Volatility (annualized)17.1%14.1%Best
Max Drawdown-45.6%-35.7%Best
$10,000 over 5 years$16,760$17,845Best
Top 10 Weight38.4%25.9%Best
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Value
InceptionJun 14, 2016Nov 10, 2006

Volatility and max drawdown are measured over the window both funds cover: Jun 15, 2016 to Sep 4, 2026 (10.2 years).

RFEM vs VYM growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 10.2 years both funds cover.

RFEM vs VYM Performance

First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) is an ETF from First Trust Portfolios (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year RFEM returned +40.66% while VYM returned +20.84%. Year to date, RFEM is up 25.92% versus a gain of 14.82% for VYM.

Over three years, RFEM compounded at +26.08% per year against +18.64% for VYM; over five years the annualized figures are +10.88% and +12.28% respectively. Across the full 10-year window we track, VYM has the edge at +10.36% annualized vs +9.17%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

RFEM has been the more volatile fund, with annualized monthly volatility of 17.1% compared with 14.1% 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 -45.6% for RFEM and -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.68. They move together some of the time, and apart the rest.

Fees and Cost Over Time

RFEM charges 0.99% per year while VYM charges 0.04%. On a $10,000 position that is $99 vs $4 annually, a gap of $95 per year that compounds over a long holding period. On income, RFEM currently yields 2.67% against 2.24% for VYM.

Holdings Overlap

RFEM already in VYM0.5%

0.5% of RFEM's money is in holdings VYM also owns.

We cannot see either book well enough to say how much of this pair is duplicated.

1 positions in common, counted across the 111 positions we hold weights for in RFEM and 603 in VYM, against full books of 119 and 613.

What only one of them owns

Our book lists 569 positions for VYM that do not appear in our book for RFEM (97.4% of the fund), and 8 for RFEM that do not appear in VYM (6.3%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in RFEMWeight in VYMDifference
SCIService Corp International0.46%0.04%0.42%

You are not choosing between two funds in isolation.

Whichever of RFEM and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

RFEMVYM

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Frequently Asked Questions

Which is cheaper, RFEM or VYM?

RFEM has an expense ratio of 0.99% while VYM charges 0.04%. VYM is the cheaper option, by $95 a year on a $10,000 investment.

Which performed better, RFEM or VYM?

Over the past year RFEM returned +40.66% vs +20.84% for VYM, so RFEM leads on 1-year performance. Over the longest common window we track (10 years), RFEM annualized +9.17% vs +10.36% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, RFEM or VYM?

RFEM has been the more volatile fund at 17.1% annualized versus 14.1% for VYM. Worst drawdown: RFEM -45.6% vs VYM -35.7%.

Should I hold both RFEM and VYM?

RFEM and VYM have a monthly-return correlation of 0.68, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, RFEM or VYM?

RFEM yields 2.67% while VYM yields 2.24%, so RFEM currently pays the higher dividend yield.

Is VYM better than RFEM?

VYM has a lower expense ratio. RFEM led over 1Y and 3Y, VYM over 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 38.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.