VYM vs XEMD
Vanguard High Dividend Yield ETF vs BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond 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 | VYM | XEMD | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.29% | |
| AUM | $79.0B | $842M | |
| Dividend Yield | 2.86% | 5.87% | |
| Holdings | 568 | 465 | |
| YTD Return | +16.53% | +1.51% | |
| 1Y Return | +25.03% | +6.26% | |
| 3Y Return (annualized) | +18.54% | +10.01% | |
| 5Y Return (annualized) | +12.25% | - | |
| Volatility (annualized) | 14.6% | 6.6% | |
| Max Drawdown | -58.8% | -10.0% | |
| Fund Family | Vanguard (US) | BondBloxx | |
| Category | Equity | Fixed Income | |
| Inception | Nov 10, 2006 | Jun 30, 2022 |
VYM vs XEMD Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF (XEMD) is a ETF from BondBloxx. Over the past year VYM returned +25.03% while XEMD returned +6.26%. Year to date, VYM is up 16.53% versus a gain of 1.51% for XEMD.
Over three years, VYM compounded at +18.54% per year against +10.01% for XEMD. Across the full 4-year window we track, XEMD has the edge at +8.69% annualized vs +7.10%. 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 6.6% for XEMD. 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 -10.0% for XEMD. 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VYM charges 0.04% per year while XEMD charges 0.29%. On a $10,000 position that is $4 vs $29 annually, a gap of $25 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 5.87% for XEMD.
Holdings Overlap
VYM and XEMD share 0 holdings out of 704 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 XEMD?
VYM has an expense ratio of 0.04% while XEMD charges 0.29%. VYM is the cheaper option. On a $10,000 investment, that is $25 per year of difference.
Which performed better, VYM or XEMD?
Over the past year VYM returned +25.03% vs +6.26% for XEMD, so VYM leads on 1-year performance. Over the longest common window we track (4 years), VYM annualized +7.10% vs +8.69% for XEMD. Past performance does not guarantee future results.
Which is riskier, VYM or XEMD?
VYM has been the more volatile fund at 14.6% annualized versus 6.6% for XEMD. Worst drawdown: VYM -58.8% vs XEMD -10.0%.
Should I hold both VYM and XEMD?
VYM and XEMD have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and XEMD?
VYM and XEMD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 704 unique securities.
Which pays a higher dividend, VYM or XEMD?
VYM yields 2.86% while XEMD yields 5.87%, so XEMD currently pays the higher dividend yield.
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