VYM vs WCME

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricVYMWCMEWinner
Expense Ratio0.04%0.95%
AUM$79.0B$35M
Dividend Yield2.86%0.34%
Holdings56842
YTD Return+16.78%+8.31%
1Y Return+24.43%+17.34%
3Y Return (annualized)+18.60%-
5Y Return (annualized)+12.30%-
Volatility (annualized)14.6%17.5%
Max Drawdown-58.8%-15.6%
Fund FamilyVanguard (US)First Trust Portfolios (US)
CategoryEquityEquity
InceptionNov 10, 2006Oct 7, 2024

VYM vs WCME Performance

Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and First Trust WCM Developing World Equity ETF (WCME) is a ETF from First Trust Portfolios (US). Over the past year VYM returned +24.43% while WCME returned +17.34%. Year to date, VYM is up 16.78% versus a gain of 8.31% for WCME.

Risk: Volatility and Drawdowns

WCME has been the more volatile fund, with annualized monthly volatility of 17.5% 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 -58.8% for VYM and -15.6% for WCME. 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VYM charges 0.04% per year while WCME charges 0.95%. On a $10,000 position that is $4 vs $95 annually, a gap of $91 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 0.34% for WCME.

Holdings Overlap

0.1%overlap

VYM and WCME share 1 holdings out of 592 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VYMWeight in WCMEDifference
BAP:BM0.10%2.22%2.12%

Frequently Asked Questions

Which is cheaper, VYM or WCME?

VYM has an expense ratio of 0.04% while WCME charges 0.95%. VYM is the cheaper option. On a $10,000 investment, that is $91 per year of difference.

Which performed better, VYM or WCME?

Over the past year VYM returned +24.43% vs +17.34% for WCME, so VYM leads on 1-year performance. Over the longest common window we track (2 years), VYM annualized +7.11% vs +16.97% for WCME. Past performance does not guarantee future results.

Which is riskier, VYM or WCME?

WCME has been the more volatile fund at 17.5% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs WCME -15.6%.

Should I hold both VYM and WCME?

VYM and WCME have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VYM and WCME?

VYM and WCME share 1 common holdings with a 0.1% weight overlap. Combined, they hold 592 unique securities.

Which pays a higher dividend, VYM or WCME?

VYM yields 2.86% while WCME yields 0.34%, so VYM currently pays the higher dividend yield.

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