RNEM vs VYM
First Trust Emerging Markets Equity Select ETF vs Vanguard High Dividend Yield ETF
Which is better, RNEM or VYM?
VYM has been ahead.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 26.7%.
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
| Metric | RNEM | VYM |
|---|---|---|
| Expense Ratio | 0.75% | 0.04%Best |
| AUM | $17M | $81.6B |
| Dividend Yield | 2.28% | 2.22% |
| Holdings | 311 | 613 |
| YTD Return | +1.75% | +11.35%Best |
| 1Y Return | +4.08% | +15.34%Best |
| 3Y Return (annualized) | +7.41% | +17.22%Best |
| 5Y Return (annualized) | +5.91% | +12.30%Best |
| Volatility (annualized) | 14.3%Best | 14.8% |
| Max Drawdown | -42.3% | -35.7%Best |
| $10,000 over 5 years | $13,326 | $17,861Best |
| Top 10 Weight | 26.7% | 26.1%Best |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Jun 20, 2017 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Jun 23, 2017 to Sep 18, 2026 (9.2 years).
RNEM 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 9.2 years both funds cover.
RNEM vs VYM Performance
First Trust Emerging Markets Equity Select ETF (RNEM) 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 RNEM returned +4.08% while VYM returned +15.34%. Year to date, RNEM is up 1.75% versus a gain of 11.35% for VYM.
Over three years, RNEM compounded at +7.41% per year against +17.22% for VYM; over five years the annualized figures are +5.91% and +12.30% respectively. Across the full 9-year window we track, VYM has the edge at +9.83% annualized vs +2.97%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.8% 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 -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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
RNEM charges 0.75% per year while VYM charges 0.04%. On a $10,000 position that is $75 vs $4 annually, a gap of $71 per year that compounds over a long holding period. On income, RNEM currently yields 2.28% against 2.22% for VYM.
Holdings Overlap
0.5% of RNEM's money is in holdings VYM also owns. 0.1% of VYM's money is in holdings RNEM also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
2 positions in common, counted across the 286 positions we hold weights for in RNEM and 557 in VYM, against full books of 311 and 613.
What only one of them owns
Our book lists 526 positions for VYM that do not appear in our book for RNEM (96.9% of the fund), and 10 for RNEM that do not appear in VYM (5.0%).
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.
You are not choosing between two funds in isolation.
Whichever of RNEM and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, RNEM or VYM?
RNEM has an expense ratio of 0.75% while VYM charges 0.04%. VYM is the cheaper option, by $71 a year on a $10,000 investment.
Which performed better, RNEM or VYM?
Over the past year RNEM returned +4.08% vs +15.34% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), RNEM annualized +2.97% vs +9.83% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, RNEM or VYM?
VYM has been the more volatile fund at 14.8% annualized versus 14.3% for RNEM. Worst drawdown: RNEM -42.3% vs VYM -35.7%.
Should I hold both RNEM and VYM?
RNEM and VYM have a monthly-return correlation of 0.71, 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, RNEM or VYM?
RNEM yields 2.28% while VYM yields 2.22%, so RNEM currently pays the higher dividend yield.
Is VYM better than RNEM?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 26.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.