UAE vs VYM
iShares MSCI UAE 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 616 holdings.
Side-by-Side Comparison
| Metric | UAE | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.04% | |
| AUM | $314M | $81.6B | |
| Dividend Yield | 4.43% | 2.24% | |
| Holdings | 62 | 616 | |
| YTD Return | +5.36% | +15.75% | |
| 1Y Return | +2.39% | +23.85% | |
| 3Y Return (annualized) | +13.98% | +19.14% | |
| 5Y Return (annualized) | +10.18% | +12.45% | |
| Volatility (annualized) | 20.2% | 14.6% | |
| Max Drawdown | -68.3% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 29, 2014 | Nov 10, 2006 |
UAE vs VYM Performance
iShares MSCI UAE ETF (UAE) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year UAE returned +2.39% while VYM returned +23.85%. Year to date, UAE is up 5.36% versus a gain of 15.75% for VYM.
Over three years, UAE compounded at +13.98% per year against +19.14% for VYM; over five years the annualized figures are +10.18% and +12.45% respectively. Across the full 12-year window we track, VYM has the edge at +7.06% annualized vs -0.29%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
UAE has been the more volatile fund, with annualized monthly volatility of 20.2% 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 -68.3% for UAE 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
UAE charges 0.60% per year while VYM charges 0.04%. On a $10,000 position that is $60 vs $4 annually, a gap of $56 per year that compounds over a long holding period. On income, UAE currently yields 4.43% against 2.24% for VYM.
Holdings Overlap
UAE and VYM share 0 holdings out of 660 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, UAE or VYM?
UAE has an expense ratio of 0.60% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $56 per year of difference.
Which performed better, UAE or VYM?
Over the past year UAE returned +2.39% vs +23.85% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (12 years), UAE annualized -0.29% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, UAE or VYM?
UAE has been the more volatile fund at 20.2% annualized versus 14.6% for VYM. Worst drawdown: UAE -68.3% vs VYM -58.8%.
Should I hold both UAE and VYM?
UAE and VYM have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between UAE and VYM?
UAE and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 660 unique securities.
Which pays a higher dividend, UAE or VYM?
UAE yields 4.43% while VYM yields 2.24%, so UAE currently pays the higher dividend yield.
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