VWOB vs VYM
Vanguard Emerging Markets Government 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 558 holdings.
Side-by-Side Comparison
| Metric | VWOB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.04% | |
| AUM | $6.3B | $79.0B | |
| Dividend Yield | 5.81% | 2.86% | |
| Holdings | 903 | 568 | |
| YTD Return | +0.71% | +16.53% | |
| 1Y Return | +5.35% | +25.03% | |
| 3Y Return (annualized) | +8.79% | +18.54% | |
| 5Y Return (annualized) | +1.81% | +12.25% | |
| Volatility (annualized) | 8.6% | 14.6% | |
| Max Drawdown | -28.0% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 31, 2013 | Nov 10, 2006 |
VWOB vs VYM Performance
Vanguard Emerging Markets Government Bond ETF (VWOB) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VWOB returned +5.35% while VYM returned +25.03%. Year to date, VWOB is up 0.71% versus a gain of 16.53% for VYM.
Over three years, VWOB compounded at +8.79% per year against +18.54% for VYM; over five years the annualized figures are +1.81% and +12.25% respectively. Across the full 13-year window we track, VYM has the edge at +7.10% annualized vs +0.76%. 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 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 -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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
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 5.81% against 2.86% for VYM.
Holdings Overlap
VWOB and VYM share 0 holdings out of 934 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, VWOB or VYM?
VWOB has an expense ratio of 0.15% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, VWOB or VYM?
Over the past year VWOB returned +5.35% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (13 years), VWOB annualized +0.76% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, VWOB or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 8.6% for VWOB. Worst drawdown: VWOB -28.0% vs VYM -58.8%.
Should I hold both VWOB and VYM?
VWOB and VYM have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VWOB and VYM?
VWOB and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 934 unique securities.
Which pays a higher dividend, VWOB or VYM?
VWOB yields 5.81% while VYM yields 2.86%, so VWOB currently pays the higher dividend yield.
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