VWOB vs VYM

VWOB vs VYM

Which is better, VWOB or VYM?

Emerging Markets Bond against Large Cap Value.

VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.

Lower Fees: VYMHigher Returns: VYM

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

MetricVWOBVYM
Expense Ratio0.15%0.04%Best
AUM$6.7B$81.6B
Dividend Yield5.86%2.22%
Holdings929613
YTD Return-0.72%+10.23%Best
1Y Return+1.54%+14.28%Best
3Y Return (annualized)+8.87%+17.50%Best
5Y Return (annualized)+1.51%+11.60%Best
Volatility (annualized)8.6%Best13.5%
Max Drawdown-28.0%Best-35.7%
$10,000 over 5 years$10,778$17,311Best
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeEquity
StyleEmerging Markets BondLarge Cap Value
InceptionMay 31, 2013Nov 10, 2006

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Jun 4, 2013 to Sep 23, 2026 (13.3 years).

VWOB 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 13.3 years both funds cover.

VWOB vs VYM Performance

Vanguard Emerging Markets Government Bond ETF (VWOB) is an ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year VWOB returned +1.54% while VYM returned +14.28%. Year to date, VWOB is down 0.72% versus a gain of 10.23% for VYM.

Over three years, VWOB compounded at +8.87% per year against +17.50% for VYM; over five years the annualized figures are +1.51% and +11.60% respectively. Across the full 13-year window we track, VYM has the edge at +9.21% annualized vs +0.65%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 13.5% compared with 8.6% for VWOB. 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 -28.0% for VWOB 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 0.64. They move together some of the time, and apart the rest.

Fees and Cost Over Time

VWOB charges 0.15% per year while VYM charges 0.04%. On a $10,000 position that is $15 vs $4 annually, a gap of $11 per year that compounds over a long holding period. On income, VWOB currently yields 5.86% against 2.22% for VYM.

Holdings Overlap

VYM already in VWOB0.1%

At least 0.1% of VYM's money is in holdings VWOB also owns.

Stated as a floor: for VWOB, our book for it covers 42.4% 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 332 positions we hold weights for in VWOB and 557 in VYM, against full books of 929 and 613.

Top Shared Holdings

StockWeight in VWOBWeight in VYMDifference
CURVVanguard Market Liquidity Fund1.09%0.15%0.94%

You are not choosing between two funds in isolation.

Whichever of VWOB and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

VWOBVYM

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, VWOB or VYM?

VWOB has an expense ratio of 0.15% while VYM charges 0.04%. VYM is the cheaper option, by $11 a year on a $10,000 investment.

Which performed better, VWOB or VYM?

Over the past year VWOB returned +1.54% vs +14.28% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (13 years), VWOB annualized +0.65% vs +9.21% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, VWOB or VYM?

VYM has been the more volatile fund at 13.5% annualized versus 8.6% for VWOB. Worst drawdown: VWOB -28.0% vs VYM -35.7%.

Should I hold both VWOB and VYM?

VWOB and VYM have a monthly-return correlation of 0.64, 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, VWOB or VYM?

VWOB yields 5.86% while VYM yields 2.22%, so VWOB currently pays the higher dividend yield.

Is VYM better than VWOB?

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.