RNEM vs VYM
First Trust Emerging Markets Equity Select 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 | RNEM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.76% | 0.04% | |
| AUM | $17M | $79.0B | |
| Dividend Yield | 2.77% | 2.86% | |
| Holdings | 290 | 568 | |
| YTD Return | +2.84% | +16.10% | |
| 1Y Return | +7.85% | +25.99% | |
| 3Y Return (annualized) | +7.80% | +18.29% | |
| 5Y Return (annualized) | +5.71% | +12.35% | |
| Volatility (annualized) | 14.3% | 14.6% | |
| Max Drawdown | -42.3% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 20, 2017 | Nov 10, 2006 |
RNEM vs VYM Performance
First Trust Emerging Markets Equity Select ETF (RNEM) is a ETF from First Trust Portfolios (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year RNEM returned +7.85% while VYM returned +25.99%. Year to date, RNEM is up 2.84% versus a gain of 16.10% for VYM.
Over three years, RNEM compounded at +7.80% per year against +18.29% for VYM; over five years the annualized figures are +5.71% and +12.35% respectively. Across the full 9-year window we track, VYM has the edge at +7.08% annualized vs +3.12%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 14.3% for RNEM. 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 -42.3% for RNEM 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
RNEM charges 0.76% per year while VYM charges 0.04%. On a $10,000 position that is $76 vs $4 annually, a gap of $72 per year that compounds over a long holding period. On income, RNEM currently yields 2.77% against 2.86% for VYM.
Holdings Overlap
RNEM and VYM share 1 holdings out of 829 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 RNEM | Weight in VYM | Difference |
|---|---|---|---|
| BAP:BM | 0.45% | 0.10% | 0.35% |
Frequently Asked Questions
Which is cheaper, RNEM or VYM?
RNEM has an expense ratio of 0.76% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $72 per year of difference.
Which performed better, RNEM or VYM?
Over the past year RNEM returned +7.85% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), RNEM annualized +3.12% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, RNEM or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 14.3% for RNEM. Worst drawdown: RNEM -42.3% vs VYM -58.8%.
Should I hold both RNEM and VYM?
RNEM and VYM have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RNEM and VYM?
RNEM and VYM share 1 common holdings with a 0.1% weight overlap. Combined, they hold 829 unique securities.
Which pays a higher dividend, RNEM or VYM?
RNEM yields 2.77% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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