VYM vs XC
Vanguard High Dividend Yield ETF vs WisdomTree True Emerging Markets Fund
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 | VYM | XC | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.32% | |
| AUM | $79.0B | $79M | |
| Dividend Yield | 2.86% | 12.29% | |
| Holdings | 568 | 502 | |
| YTD Return | +16.10% | +0.34% | |
| 1Y Return | +25.99% | +7.59% | |
| 3Y Return (annualized) | +18.29% | +10.88% | |
| 5Y Return (annualized) | +12.35% | - | |
| Volatility (annualized) | 14.6% | 13.9% | |
| Max Drawdown | -58.8% | -21.0% | |
| Fund Family | Vanguard (US) | WisdomTree Investments | |
| Category | Equity | Equity | |
| Inception | Nov 10, 2006 | Sep 20, 2022 |
VYM vs XC Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and WisdomTree True Emerging Markets Fund (XC) is a ETF from WisdomTree Investments. Over the past year VYM returned +25.99% while XC returned +7.59%. Year to date, VYM is up 16.10% versus a gain of 0.34% for XC.
Over three years, VYM compounded at +18.29% per year against +10.88% for XC. Across the full 4-year window we track, XC has the edge at +11.74% annualized vs +7.08%. 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 13.9% for XC. 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 -21.0% for XC. 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VYM charges 0.04% per year while XC charges 0.32%. On a $10,000 position that is $4 vs $32 annually, a gap of $28 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 12.29% for XC.
Holdings Overlap
VYM and XC share 1 holdings out of 1043 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VYM | Weight in XC | Difference |
|---|---|---|---|
| PG | 1.72% | 0.01% | 1.71% |
Frequently Asked Questions
Which is cheaper, VYM or XC?
VYM has an expense ratio of 0.04% while XC charges 0.32%. VYM is the cheaper option. On a $10,000 investment, that is $28 per year of difference.
Which performed better, VYM or XC?
Over the past year VYM returned +25.99% vs +7.59% for XC, so VYM leads on 1-year performance. Over the longest common window we track (4 years), VYM annualized +7.08% vs +11.74% for XC. Past performance does not guarantee future results.
Which is riskier, VYM or XC?
VYM has been the more volatile fund at 14.6% annualized versus 13.9% for XC. Worst drawdown: VYM -58.8% vs XC -21.0%.
Should I hold both VYM and XC?
VYM and XC have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and XC?
VYM and XC share 1 common holdings with a 0.0% weight overlap. Combined, they hold 1043 unique securities.
Which pays a higher dividend, VYM or XC?
VYM yields 2.86% while XC yields 12.29%, so XC currently pays the higher dividend yield.
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