VWO vs VYM
Vanguard FTSE Emerging Markets ETF vs Vanguard High Dividend Yield ETF
Which is better, VWO or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.
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 | VWO | VYM |
|---|---|---|
| Expense Ratio | 0.06% | 0.04%Best |
| AUM | $122.0B | $81.6B |
| Dividend Yield | 2.29% | 2.22% |
| Holdings | 6,334 | 613 |
| YTD Return | +10.95% | +13.75%Best |
| 1Y Return | +18.57% | +19.42%Best |
| 3Y Return (annualized) | +17.94% | +18.22%Best |
| 5Y Return (annualized) | +6.22% | +12.17%Best |
| Volatility (annualized) | 20.1% | 14.5%Best |
| Max Drawdown | -68.3% | -58.8%Best |
| $10,000 over 5 years | $13,522 | $17,758Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Mar 4, 2005 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 9, 2026 (19.8 years).
VWO 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 19.8 years both funds cover.
VWO vs VYM Performance
Vanguard FTSE Emerging Markets ETF (VWO) is an ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year VWO returned +18.57% while VYM returned +19.42%. Year to date, VWO is up 10.95% versus a gain of 13.75% for VYM.
Over three years, VWO compounded at +17.94% per year against +18.22% for VYM; over five years the annualized figures are +6.22% and +12.17% respectively. Across the full 20-year window we track, VYM has the edge at +6.94% annualized vs +3.45%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWO has been the more volatile fund, with annualized monthly volatility of 20.1% compared with 14.5% 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 VWO and -58.8% 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 0.69. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VWO charges 0.06% per year while VYM charges 0.04%. On a $10,000 position that is $6 vs $4 annually, a gap of $2 per year that compounds over a long holding period. On income, VWO currently yields 2.29% against 2.22% for VYM.
Holdings Overlap
At least 0.1% of VYM's money is in holdings VWO also owns.
Stated as a floor: for VWO, our book for it covers 88.0% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 4,694 positions we hold weights for in VWO and 603 in VYM, against full books of 6,334 and 613.
Top Shared Holdings
| Stock | Weight in VWO | Weight in VYM | Difference |
|---|---|---|---|
| HAL:MBHindustan Aeronautics Ltd | 0.07% | 0.12% | 0.05% |
You are not choosing between two funds in isolation.
Whichever of VWO 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, VWO or VYM?
VWO has an expense ratio of 0.06% while VYM charges 0.04%. VYM is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, VWO or VYM?
Over the past year VWO returned +18.57% vs +19.42% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VWO annualized +3.45% vs +6.94% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VWO or VYM?
VWO has been the more volatile fund at 20.1% annualized versus 14.5% for VYM. Worst drawdown: VWO -68.3% vs VYM -58.8%.
Should I hold both VWO and VYM?
VWO and VYM have a monthly-return correlation of 0.69, 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, VWO or VYM?
VWO yields 2.29% while VYM yields 2.22%, so VWO currently pays the higher dividend yield.
Is VYM better than VWO?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.