VEM vs. DEM

Last updated Jul 30, 2026

VEM (Virtus Emerging Markets Dividend ETF) and DEM (WisdomTree Emerging Markets Equity Income Fund) are both exchange-traded funds - VEM is a Emerging Markets Equities fund actively managed by Virtus, while DEM is a Dividend fund tracking the WisdomTree Emerging Markets Equity Income Index. VEM is actively managed, while DEM is passively managed. Their correlation of 0.88 means they have usually moved in the same direction. VEM charges 0.49%/yr vs 0.63%/yr for DEM.

Performance

VEM vs. DEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Virtus Emerging Markets Dividend ETF (VEM) and WisdomTree Emerging Markets Equity Income Fund (DEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

VEM

• 1D: -1.75%
• 1M: -6.50%
• 6M: —
• YTD: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: —

DEM

• 1D: -0.97%
• 1M: -2.30%
• 6M: 5.65%
• YTD: 14.04%
• 1Y: 19.80%
• 3Y*: 14.30%
• 5Y*: 9.61%
• 10Y*: 8.85%
• ALL TIME*: 4.78%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
DEM WisdomTree Emerging Markets Equity Income Fund	$8.95M	$9.97M	$10.87M
VEM Virtus Emerging Markets Dividend ETF	$1.18K	$2.76K	$6.90K

VEM vs. DEM - Yearly Performance Comparison

	2026 (YTD)
VEM Virtus Emerging Markets Dividend ETF	2.66%
DEM WisdomTree Emerging Markets Equity Income Fund	6.73%

Correlation

The correlation between VEM and DEM is 0.88, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (All Time) Calculated using the full available price history since Feb 4, 2026	0.88

VEM vs. DEM - Sectors Allocation Comparison

Sectors	VEM	DEM
Technology	38.5%	17.5%
Financial Services	22.3%	21.9%
Industrials	7.5%	8.9%
Basic Materials	7.3%	3.7%
Energy	5.5%	6.2%
Consumer Cyclical	2.9%	5.4%
Consumer Defensive	2.2%	5.8%
Communication Services	1.8%	3.0%
Utilities	1.1%	3.0%
Real Estate	1.0%	2.9%
Healthcare	-	0.6%

Return for Risk

VEM vs. DEM — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VEM

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

DEM

DEM Risk / Return Rank: 60
DEM Sharpe Ratio Rank: 57
DEM Sortino Ratio Rank: 55
DEM Omega Ratio Rank: 55
DEM Calmar Ratio Rank: 72
DEM Martin Ratio Rank: 64

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VEM vs. DEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Virtus Emerging Markets Dividend ETF (VEM) and WisdomTree Emerging Markets Equity Income Fund (DEM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	VEM	DEM	Difference
Sharpe ratio: Return per unit of total volatility	—	1.34	—
Sortino ratio: Return per unit of downside risk	—	1.90	—
Omega ratio: Gain probability vs. loss probability	—	1.24	—
Calmar ratio: Return relative to maximum drawdown	—	2.52	—
Martin ratio: Return relative to average drawdown	—	7.66	—

Drawdowns

VEM vs. DEM - Drawdown Comparison

The maximum VEM drawdown since its inception was -13.55%, smaller than the maximum DEM drawdown of -51.85%. Use the drawdown chart below to compare losses from any high point for VEM and DEM.

Drawdown Indicators

	VEM	DEM	Difference
Max Drawdown Largest peak-to-trough decline	-13.55%	-51.85%	+38.30%
Max Drawdown (1Y) Largest decline over 1 year	—	-7.89%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-15.64%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-27.18%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-37.79%	—
Current Drawdown Current decline from peak	-11.26%	-6.06%	-5.20%
Average Drawdown Average peak-to-trough decline	-4.52%	-12.82%	+8.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	2.59%	—

Volatility

Volatility by Period

	VEM	DEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	4.64%	—
Volatility (6M) Calculated over the trailing 6-month period	—	13.06%	—
Volatility (1Y) Calculated over the trailing 1-year period	30.70%	14.84%	+15.86%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.70%	15.58%	+15.12%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	30.70%	17.84%	+12.86%

VEM vs. DEM - Expense Ratio Comparison

VEM has a 0.49% expense ratio, which is lower than DEM's 0.63% expense ratio.

Dividends

VEM vs. DEM - Dividend Comparison

VEM's dividend yield for the trailing twelve months is around 2.14%, less than DEM's 4.29% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DEM WisdomTree Emerging Markets Equity Income Fund	4.29%	4.88%	5.24%	5.49%	8.62%	5.87%	4.21%	4.78%	4.47%	3.67%	3.63%	5.21%
VEM Virtus Emerging Markets Dividend ETF	2.14%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VEM and DEM in my portfolio?

VEM and DEM have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VEM or DEM?

On fees, VEM is cheaper at 0.49% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VEM or DEM?

VEM is cheaper with a 0.49% expense ratio, compared with 0.63% for DEM.

Which ETF pays a higher dividend yield, VEM or DEM?

DEM has the higher dividend yield at 4.29%, compared with 2.14% for VEM.

What is the main difference between VEM and DEM?

VEM is categorized as Emerging Markets Equities, while DEM is Dividend. They also come from different issuers: Virtus and WisdomTree. Their fees differ too: 0.49% for VEM and 0.63% for DEM.