VEM vs. VEXC

Last updated Jul 10, 2026

VEM (Virtus Emerging Markets Dividend ETF) and VEXC (Vanguard Emerging Markets Ex-China ETF) are both Emerging Markets Equities funds. VEM is actively managed, while VEXC is passively managed. Their correlation of 0.91 suggests significant overlap in exposure. VEM charges 0.49%/yr vs 0.07%/yr for VEXC.

Performance

VEM vs. VEXC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Virtus Emerging Markets Dividend ETF (VEM) and Vanguard Emerging Markets Ex-China ETF (VEXC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

VEM

• 1D: 0.33%
• 1M: 1.08%
• 6M: —
• YTD: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

VEXC

• 1D: 0.60%
• 1M: 3.26%
• 6M: 17.70%
• YTD: 20.32%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VEM vs. VEXC - Yearly Performance Comparison

	2026 (YTD)
VEM Virtus Emerging Markets Dividend ETF	8.93%
VEXC Vanguard Emerging Markets Ex-China ETF	12.08%

Correlation

The correlation between VEM and VEXC is 0.91, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (All Time) Calculated using the full available price history since Feb 4, 2026	0.91

Return for Risk

VEM vs. VEXC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Virtus Emerging Markets Dividend ETF (VEM) and Vanguard Emerging Markets Ex-China ETF (VEXC). 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.

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

Drawdowns

VEM vs. VEXC - Drawdown Comparison

The maximum VEM drawdown since its inception was -13.55%, which is greater than VEXC's maximum drawdown of -12.42%. Use the drawdown chart below to compare losses from any high point for VEM and VEXC.

Drawdown Indicators

	VEM	VEXC	Difference
Max Drawdown Largest peak-to-trough decline	-13.55%	-12.42%	-1.13%
Current Drawdown Current decline from peak	-5.85%	-3.61%	-2.24%
Average Drawdown Average peak-to-trough decline	-4.08%	-2.31%	-1.77%

Volatility

Volatility by Period

	VEM	VEXC	Difference
Volatility (1Y) Calculated over the trailing 1-year period	30.97%	20.15%	+10.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.97%	20.15%	+10.82%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	30.97%	20.15%	+10.82%

VEM vs. VEXC - Expense Ratio Comparison

VEM has a 0.49% expense ratio, which is higher than VEXC's 0.07% expense ratio.

Dividends

VEM vs. VEXC - Dividend Comparison

VEM's dividend yield for the trailing twelve months is around 2.02%, more than VEXC's 1.43% yield.

Position	TTM	2025
VEM Virtus Emerging Markets Dividend ETF	2.02%	0.00%
VEXC Vanguard Emerging Markets Ex-China ETF	1.43%	0.43%

Frequently Asked Questions

Can I hold both VEM and VEXC in my portfolio?

With a correlation of 0.91, VEM and VEXC move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which ETF is better, VEM or VEXC?

On fees, VEXC is cheaper at 0.07% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VEM or VEXC?

VEXC is cheaper with a 0.07% expense ratio, compared with 0.49% for VEM.

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

VEM has the higher dividend yield at 2.02%, compared with 1.43% for VEXC.

What is the main difference between VEM and VEXC?

They also come from different issuers: Virtus and Vanguard. Their fees differ too: 0.49% for VEM and 0.07% for VEXC.