VEMY vs VYM
Virtus Stone Harbor Emerging Markets High Yield Bond 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 | VEMY | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.04% | |
| AUM | $50M | $81.6B | |
| Dividend Yield | 8.15% | 2.24% | |
| Holdings | 189 | 616 | |
| YTD Return | +5.37% | +14.66% | |
| 1Y Return | +10.96% | +22.16% | |
| 3Y Return (annualized) | +14.58% | +18.72% | |
| 5Y Return (annualized) | - | +12.18% | |
| Volatility (annualized) | 6.9% | 14.6% | |
| Max Drawdown | -8.8% | -58.8% | |
| Fund Family | Virtus Investment Partners | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 12, 2022 | Nov 10, 2006 |
VEMY vs VYM Performance
Virtus Stone Harbor Emerging Markets High Yield Bond ETF (VEMY) is a ETF from Virtus Investment Partners and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VEMY returned +10.96% while VYM returned +22.16%. Year to date, VEMY is up 5.37% versus a gain of 14.66% for VYM.
Over three years, VEMY compounded at +14.58% per year against +18.72% for VYM. Across the full 4-year window we track, VEMY has the edge at +12.85% annualized vs +7.01%. 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 6.9% for VEMY. 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 -8.8% for VEMY 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VEMY charges 0.55% per year while VYM charges 0.04%. On a $10,000 position that is $55 vs $4 annually, a gap of $51 per year that compounds over a long holding period. On income, VEMY currently yields 8.15% against 2.24% for VYM.
Frequently Asked Questions
Which is cheaper, VEMY or VYM?
VEMY has an expense ratio of 0.55% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $51 per year of difference.
Which performed better, VEMY or VYM?
Over the past year VEMY returned +10.96% vs +22.16% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), VEMY annualized +12.85% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, VEMY or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 6.9% for VEMY. Worst drawdown: VEMY -8.8% vs VYM -58.8%.
Should I hold both VEMY and VYM?
VEMY and VYM have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, VEMY or VYM?
VEMY yields 8.15% while VYM yields 2.24%, so VEMY currently pays the higher dividend yield.
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