IEMG vs VYM
IEMG vs VYM
iShares Core MSCI Emerging Markets ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. IEMG delivered stronger 1-year returns. IEMG offers more diversification with 1154 holdings.
Side-by-Side Comparison
| Metric | IEMG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.04% | |
| AUM | $149.8B | $79.0B | |
| Dividend Yield | 2.17% | 2.86% | |
| Holdings | 2,869 | 568 | |
| YTD Return | +16.86% | +15.80% | |
| 1Y Return | +33.41% | +26.12% | |
| 3Y Return (annualized) | +20.05% | +18.25% | |
| 5Y Return (annualized) | +7.50% | +12.51% | |
| Volatility (annualized) | 16.4% | 14.6% | |
| Max Drawdown | -42.2% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 18, 2012 | Nov 10, 2006 |
IEMG vs VYM Performance
iShares Core MSCI Emerging Markets ETF (IEMG) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year IEMG returned +33.41% while VYM returned +26.12%. Year to date, IEMG is up 16.86% versus a gain of 15.80% for VYM.
Over three years, IEMG compounded at +20.05% per year against +18.25% for VYM; over five years the annualized figures are +7.50% and +12.51% respectively. Across the full 14-year window we track, VYM has the edge at +7.07% annualized vs +4.66%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IEMG has been the more volatile fund, with annualized monthly volatility of 16.4% 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 -42.2% for IEMG 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IEMG charges 0.09% per year while VYM charges 0.04%. On a $10,000 position that is $9 vs $4 annually, a gap of $5 per year that compounds over a long holding period. On income, IEMG currently yields 2.17% against 2.86% for VYM.
Holdings Overlap
IEMG and VYM share 3 holdings out of 1709 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IEMG or VYM?
IEMG has an expense ratio of 0.09% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, IEMG or VYM?
Over the past year IEMG returned +33.41% vs +26.12% for VYM, so IEMG leads on 1-year performance. Over the longest common window we track (14 years), IEMG annualized +4.66% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, IEMG or VYM?
IEMG has been the more volatile fund at 16.4% annualized versus 14.6% for VYM. Worst drawdown: IEMG -42.2% vs VYM -58.8%.
Should I hold both IEMG and VYM?
IEMG and VYM have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IEMG and VYM?
IEMG and VYM share 3 common holdings with a 0.2% weight overlap. Combined, they hold 1709 unique securities.
Which pays a higher dividend, IEMG or VYM?
IEMG yields 2.17% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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