VYM vs XSOE
Vanguard High Dividend Yield ETF vs WisdomTree Emerging Markets Ex-State Owned Enterprises Fund
Quick Verdict
VYM has a lower expense ratio. XSOE delivered stronger 1-year returns. XSOE offers more diversification with 733 holdings.
Side-by-Side Comparison
| Metric | VYM | XSOE | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.33% | |
| AUM | $79.0B | $2.0B | |
| Dividend Yield | 2.86% | 1.08% | |
| Holdings | 568 | 827 | |
| YTD Return | +16.10% | +16.76% | |
| 1Y Return | +25.99% | +34.33% | |
| 3Y Return (annualized) | +18.29% | +19.82% | |
| 5Y Return (annualized) | +12.35% | +5.04% | |
| Volatility (annualized) | 14.6% | 18.4% | |
| Max Drawdown | -58.8% | -45.2% | |
| Fund Family | Vanguard (US) | WisdomTree Investments | |
| Category | Equity | Equity | |
| Inception | Nov 10, 2006 | Dec 10, 2014 |
VYM vs XSOE Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and WisdomTree Emerging Markets Ex-State Owned Enterprises Fund (XSOE) is a ETF from WisdomTree Investments. Over the past year VYM returned +25.99% while XSOE returned +34.33%. Year to date, VYM is up 16.10% versus a gain of 16.76% for XSOE.
Over three years, VYM compounded at +18.29% per year against +19.82% for XSOE; over five years the annualized figures are +12.35% and +5.04% respectively. Across the full 12-year window we track, VYM has the edge at +7.08% annualized vs +6.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XSOE has been the more volatile fund, with annualized monthly volatility of 18.4% 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 -45.2% for XSOE. 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VYM charges 0.04% per year while XSOE charges 0.33%. On a $10,000 position that is $4 vs $33 annually, a gap of $29 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 1.08% for XSOE.
Holdings Overlap
VYM and XSOE share 1 holdings out of 1290 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VYM | Weight in XSOE | Difference |
|---|---|---|---|
| RS | 0.07% | 0.08% | 0.01% |
Frequently Asked Questions
Which is cheaper, VYM or XSOE?
VYM has an expense ratio of 0.04% while XSOE charges 0.33%. VYM is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, VYM or XSOE?
Over the past year VYM returned +25.99% vs +34.33% for XSOE, so XSOE leads on 1-year performance. Over the longest common window we track (12 years), VYM annualized +7.08% vs +6.45% for XSOE. Past performance does not guarantee future results.
Which is riskier, VYM or XSOE?
XSOE has been the more volatile fund at 18.4% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs XSOE -45.2%.
Should I hold both VYM and XSOE?
VYM and XSOE have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and XSOE?
VYM and XSOE share 1 common holdings with a 0.1% weight overlap. Combined, they hold 1290 unique securities.
Which pays a higher dividend, VYM or XSOE?
VYM yields 2.86% while XSOE yields 1.08%, so VYM currently pays the higher dividend yield.
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