EMD vs VOO
EMD vs VOO
Western Asset Emerging Markets Debt Fund Inc vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | EMD | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 1.59% | 0.03% | |
| AUM | $636M | $979.0B | |
| Dividend Yield | 9.68% | 1.09% | |
| Holdings | 278 | 509 | |
| YTD Return | +4.86% | +13.80% | |
| 1Y Return | +15.18% | +23.71% | |
| 3Y Return (annualized) | +17.47% | +21.50% | |
| 5Y Return (annualized) | +5.00% | +13.44% | |
| Volatility (annualized) | 17.2% | 14.1% | |
| Max Drawdown | -64.5% | -34.3% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 1, 2003 | Sep 7, 2010 |
EMD vs VOO Performance
Western Asset Emerging Markets Debt Fund Inc (EMD) is a ETF from Franklin Templeton Investments (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year EMD returned +15.18% while VOO returned +23.71%. Year to date, EMD is up 4.86% versus a gain of 13.80% for VOO.
Over three years, EMD compounded at +17.47% per year against +21.50% for VOO; over five years the annualized figures are +5.00% and +13.44% respectively. Across the full 16-year window we track, VOO has the edge at +13.58% annualized vs -0.31%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EMD has been the more volatile fund, with annualized monthly volatility of 17.2% compared with 14.1% for VOO. 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 -64.5% for EMD and -34.3% for VOO. 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
EMD charges 1.59% per year while VOO charges 0.03%. On a $10,000 position that is $159 vs $3 annually, a gap of $156 per year that compounds over a long holding period. On income, EMD currently yields 9.68% against 1.09% for VOO.
Holdings Overlap
EMD and VOO share 0 holdings out of 641 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, EMD or VOO?
EMD has an expense ratio of 1.59% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $156 per year of difference.
Which performed better, EMD or VOO?
Over the past year EMD returned +15.18% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), EMD annualized -0.31% vs +13.58% for VOO. Past performance does not guarantee future results.
Which is riskier, EMD or VOO?
EMD has been the more volatile fund at 17.2% annualized versus 14.1% for VOO. Worst drawdown: EMD -64.5% vs VOO -34.3%.
Should I hold both EMD and VOO?
EMD and VOO have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EMD and VOO?
EMD and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 641 unique securities.
Which pays a higher dividend, EMD or VOO?
EMD yields 9.68% while VOO yields 1.09%, so EMD currently pays the higher dividend yield.
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