EDD vs VYM
EDD vs VYM
Morgan Stanley Emerging Markets Domestic Debt Fund Inc. vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. EDD delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | EDD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.90% | 0.04% | |
| AUM | - | $79.0B | |
| Dividend Yield | 10.70% | 2.86% | |
| Holdings | 684 | 568 | |
| YTD Return | +15.43% | +15.45% | |
| 1Y Return | +28.43% | +26.05% | |
| 3Y Return (annualized) | +20.02% | +17.96% | |
| 5Y Return (annualized) | +8.73% | +12.54% | |
| Volatility (annualized) | 21.0% | 14.6% | |
| Max Drawdown | -81.5% | -58.8% | |
| Fund Family | Morgan Stanley Investment Management | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 24, 2007 | Nov 10, 2006 |
EDD vs VYM Performance
Morgan Stanley Emerging Markets Domestic Debt Fund Inc. (EDD) is a ETF from Morgan Stanley Investment Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year EDD returned +28.43% while VYM returned +26.05%. Year to date, EDD is up 15.43% versus a gain of 15.45% for VYM.
Over three years, EDD compounded at +20.02% per year against +17.96% for VYM; over five years the annualized figures are +8.73% and +12.54% respectively. Across the full 19-year window we track, VYM has the edge at +7.06% annualized vs -3.70%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EDD has been the more volatile fund, with annualized monthly volatility of 21.0% 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 -81.5% for EDD and -58.8% for VYM. 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EDD charges 1.90% per year while VYM charges 0.04%. On a $10,000 position that is $190 vs $4 annually, a gap of $186 per year that compounds over a long holding period. On income, EDD currently yields 10.70% against 2.86% for VYM.
Holdings Overlap
EDD and VYM share 0 holdings out of 567 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, EDD or VYM?
EDD has an expense ratio of 1.90% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $186 per year of difference.
Which performed better, EDD or VYM?
Over the past year EDD returned +28.43% vs +26.05% for VYM, so EDD leads on 1-year performance. Over the longest common window we track (19 years), EDD annualized -3.70% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, EDD or VYM?
EDD has been the more volatile fund at 21.0% annualized versus 14.6% for VYM. Worst drawdown: EDD -81.5% vs VYM -58.8%.
Should I hold both EDD and VYM?
EDD and VYM have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EDD and VYM?
EDD and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 567 unique securities.
Which pays a higher dividend, EDD or VYM?
EDD yields 10.70% while VYM yields 2.86%, so EDD currently pays the higher dividend yield.
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