VYM vs XCEM

Quick Verdict

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

Lower Fees: VYMHigher Returns: XCEMMore Diversified: VYM

Side-by-Side Comparison

MetricVYMXCEMWinner
Expense Ratio0.04%0.16%
AUM$79.0B$2.0B
Dividend Yield2.86%2.40%
Holdings568338
YTD Return+16.16%+25.94%
1Y Return+26.05%+47.70%
3Y Return (annualized)+18.43%+23.51%
5Y Return (annualized)+12.21%+10.84%
Volatility (annualized)14.6%19.5%
Max Drawdown-58.8%-41.2%
Fund FamilyVanguard (US)Columbia Threadneedle Investments
CategoryEquityEquity
InceptionNov 10, 2006Sep 1, 2015

VYM vs XCEM Performance

Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and Columbia EM Core ex-China ETF (XCEM) is a ETF from Columbia Threadneedle Investments. Over the past year VYM returned +26.05% while XCEM returned +47.70%. Year to date, VYM is up 16.16% versus a gain of 25.94% for XCEM.

Over three years, VYM compounded at +18.43% per year against +23.51% for XCEM; over five years the annualized figures are +12.21% and +10.84% respectively. Across the full 11-year window we track, XCEM has the edge at +11.68% annualized vs +7.09%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

XCEM has been the more volatile fund, with annualized monthly volatility of 19.5% 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 -41.2% for XCEM. 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VYM charges 0.04% per year while XCEM charges 0.16%. On a $10,000 position that is $4 vs $16 annually, a gap of $12 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 2.40% for XCEM.

Holdings Overlap

0.0%overlap

VYM and XCEM share 0 holdings out of 1000 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, VYM or XCEM?

VYM has an expense ratio of 0.04% while XCEM charges 0.16%. VYM is the cheaper option. On a $10,000 investment, that is $12 per year of difference.

Which performed better, VYM or XCEM?

Over the past year VYM returned +26.05% vs +47.70% for XCEM, so XCEM leads on 1-year performance. Over the longest common window we track (11 years), VYM annualized +7.09% vs +11.68% for XCEM. Past performance does not guarantee future results.

Which is riskier, VYM or XCEM?

XCEM has been the more volatile fund at 19.5% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs XCEM -41.2%.

Should I hold both VYM and XCEM?

VYM and XCEM have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VYM and XCEM?

VYM and XCEM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1000 unique securities.

Which pays a higher dividend, VYM or XCEM?

VYM yields 2.86% while XCEM yields 2.40%, so VYM currently pays the higher dividend yield.

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