At a glance
HYEM charges 0.4% a year, above the 0.35% average of the 7 funds most like it (the 4th cheapest of 8). It has $521.5M in assets, the 8th largest of that group; it paid 7.09% of its price in distributions over the past 12 months, monthly. Over the past year it returned +3.1% with distributions reinvested, 3rd of those 8 funds; over three years it returned +10.5% a year. At its worst it fell 30.9% in the 2020 crash (S&P 500: 33.7%) and 22.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 23 months after the lows. Its ten largest positions make up 6.6% of the fund, out of 558 in all.
The short version
VanEck Emerging Markets High Yield Bond ETF (HYEM) holds U.S. dollar bonds from emerging market companies with below-investment-grade credit ratings. It aims to track the ICE BofA Diversified High Yield US Emerging Markets Corporate Plus Index. Its trailing 12-month yield was 7.09% as of October 27, 2026, paid monthly. It charges 0.40% a year, more than broad high-yield funds such as USHY (0.08%) and SPHY (0.05%), which don't focus on emerging markets.
Price history
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HYEM +3.1% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| HYEM official prospectus, to Dec 31, 2025 | — | +9.19% | — | +2.81% | +5.15% | — |
| HYEM price data to Oct 27, 2026 | +2.2% | +3.1% | +10.5% | +3.0% | +3.8% | +4.4% |
- Over the year to Oct 27, 2026, HYEM returned +3.1%, 3rd of 8 among similar funds.
- Its 5-year annualized return was +3.0% and its 10-year +3.8%.
- In the 2020 COVID crash it fell 30.9% and regained its old high 8.2 months after the low.
- Its worst full calendar year was 2022 (-13.4%); its best was 2016 (+15.9%).
- The deepest fall in its price history was 31% (Feb 12, 2020 to Mar 19, 2020), recovered by Nov 24, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +2.2% | — |
| 2025 | +9.2% | +9.19% |
| 2024 | +12.2% | +12.43% |
| 2023 | +8.3% | +8.13% |
| 2022 | -13.4% | -12.68% |
| 2021 | -1.3% | -0.92% |
| 2020 | +6.4% | +6.75% |
| 2019 | +12.8% | +12.29% |
| 2018 | -3.4% | -3.54% |
| 2017 | +7.9% | +7.99% |
| 2016 | +15.9% | +15.28% |
| 2015 | +3.5% | — |
| 2014 | -2.4% | — |
| 2013 | -1.5% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 27.6% over that stretch · deepest drop along the way 30.9%, back to its old high 8.2 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 21% over that stretch · deepest drop along the way 22.8%, back to its old high 23 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.0300 | |
| 2025 | $1.3200 | +6.5% |
| 2024 | $1.2400 | +6.9% |
| 2023 | $1.1600 | -1.0% |
| 2022 | $1.1712 | -2.0% |
| 2021 | $1.1945 | -2.0% |
| 2020 | $1.2186 | -16.4% |
| 2019 | $1.4573 | +14.1% |
| 2018 | $1.2771 | -11.0% |
| 2017 | $1.4355 | -4.5% |
| 2016 | $1.5028 | -11.1% |
| 2015 | $1.6908 | +8.7% |
| 2014 | $1.5558 | +1.2% |
| 2013 | $1.5379 |
What's inside
As of Jul 31, 2026, the fund held 558 securities; the ten largest made up 6.6% of assets, and 3.52% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| PROVINCIA DE BUENOS AIRE Bonds and notes | 1.60% | |
| SAMARCO MINERACAO SA Bonds and notes | 0.71% | |
| DIG INTL FIN/DIFL US LLC Bonds and notes | 0.66% | |
| GRUPO NUTRESA SA Bonds and notes | 0.55% | |
| YPF SOCIEDAD ANONIMA Bonds and notes | 0.54% | |
| ECOPETROL SA Bonds and notes | 0.54% | |
| GRUPO NUTRESA SA Bonds and notes | 0.53% | |
| DAR AL-ARKAN SUKUK CO LT Bonds and notes | 0.50% | |
| PETROLEOS MEXICANOS Bonds and notes | 0.49% | |
| TEVA PHARMACEUTICALS NE Bonds and notes | 0.49% | |
| FIRST QUANTUM MINERALS L Bonds and notes | 0.47% | |
| LATAM AIRLINES GROUP SA Bonds and notes | 0.47% | |
| WYNN MACAU LTD Bonds and notes | 0.46% | |
| PETROLEOS MEXICANOS Bonds and notes | 0.46% | |
| PETROLEOS DEL PERU SA Bonds and notes | 0.45% |
By country
Cayman Islands 10.92%Argentina 10.15%Turkey 8.87%Mexico 7.07%Netherlands 5.59%By issuer
Companies 92.56%Foreign governments 4.35%Other 0.08%The bonds mature in 6.1 years on average (weighted by size), with an average coupon of 7.21%.
Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors added a net $20.1M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.60%, +0.60%, -0.07%.
How it works
HYEM follows the ICE BofA Diversified High Yield US Emerging Markets Corporate Plus Index. The index holds U.S. dollar bonds from emerging market issuers that are not national governments and that have below-investment-grade ratings, often called "junk bonds." To qualify, an issuer must have risk exposure to countries outside the G10 currency group, Western Europe and their territories. As of June 30, 2026, the index held 561 bonds from 345 issuers. About 75% were Rule 144A securities, which are bonds sold privately to large institutions and traded among them. Some may be quasi-sovereign bonds, meaning bonds from companies tied to a government.
The fund is passive. It doesn't try to beat the index, and it doesn't move into cash for protection when markets fall. Buying every bond in the index would be costly, so VanEck uses "sampling": it holds a subset of bonds chosen to match the index's risk and return. At least 80% of assets must be in index securities. Portfolio turnover was 39%.
As of July 31, 2026, the fund held 558 bonds, and the top 10 made up just 6.6%. The largest positions were Provincia de Buenos Aires (1.6%), Samarco Mineracao and Digicel. The biggest country weights were the Cayman Islands, Argentina and Turkey. The average maturity was 6.1 years. When interest rates rise, bond prices fall, and longer maturities fall more.
What it really costs
- HYEM charges 0.4% a year, versus an average of 0.35% for the similar funds below (4th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $41 in the first year and $505 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| HYEM | $41 | $128 | $224 | $505 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
Its high monthly income comes from junk-rated emerging market corporate bonds, and it fell sharply in 2020 and 2022, so it fits best as a smaller position next to core holdings.
HYEM may add a high monthly income stream and exposure to corporate borrowers outside the U.S. Its trailing 12-month yield was 7.09% as of October 27, 2026. It costs 0.40% a year. In the SEC's standard example, that's about $41 in the first year on $10,000. The trade-off is credit risk, which shows up in bad markets. The fund launched in 2012, so it has no record from 2008. In the 2020 COVID crash it fell 30.9% in a month and took about eight months to recover. In 2022 it dropped 22.8% and needed about 23 months to get back to its earlier high. Its worst calendar year was 2022, at -12.68%. Anyone who had to sell shares during those stretches would have locked in losses. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors seeking monthly income who accept junk-rated credit risk; the trailing 12-month yield was 7.09% as of October 27, 2026.
- Those wanting bond exposure beyond U.S. issuers, spread across 558 bonds from borrowers in Argentina, Turkey, Mexico, Colombia and elsewhere.
- Holders who can leave a small position alone for years; after the 2022 drop, the fund took about 23 months to recover.
Look elsewhere if
- Cost-focused investors: broad high-yield funds such as USHY (0.08%) and SPHY (0.05%) charge far less than HYEM's 0.40%.
- Anyone who needs stable values for near-term spending; the fund fell 31% in early 2020 and lost 12.68% in 2022.
- Investors uneasy about emerging market political and legal risks; about 10% was in Argentina and 9% in Turkey as of July 31, 2026.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| HYEM this fund | 6.1 yrs | 0.4% | $521.5M | +3.1% | +10.5% |
| JNK SPDR Bloomberg High Yield Bond ETF | 5.8 yrs | 0.4% | $7.35B | +1.6% | +8.7% |
| HYG iShares iBoxx $ High Yield Corporate Bond E… | 5.4 yrs | 0.49% | $16.19B | +0.9% | +7.4% |
| USHY iShares Broad USD High Yield Corporate Bond… | 5.4 yrs | 0.08% | $28.59B | +1.2% | +7.7% |
| SPHY SPDR Portfolio High Yield Bond ETF | 5.4 yrs | 0.05% | $11.33B | +1.8% | +8.9% |
| SRLN SPDR Blackstone Senior Loan ETF | 5.2 yrs | 0.7% | $5.21B | +3.7% | +7.0% |
| BKLN Invesco Senior Loan ETF | 4.8 yrs | 0.65% | $6.74B | +3.9% | +6.9% |
| HYLB Xtrackers USD High Yield Corporate Bond ETF | 4.6 yrs | 0.05% | $3.56B | +1.6% | +8.7% |
Questions investors ask
Does HYEM pay monthly dividends?
Yes. HYEM pays income every month. Over the 12 months to October 27, 2026, it paid $1.37 per share, a trailing yield of 7.09%. The income comes from interest on its bonds, which had an average coupon of 7.21% as of July 31, 2026. Payments can change from month to month. They depend on the interest the fund collects, and defaults or falling rates can reduce them.
What is HYEM's expense ratio?
HYEM's expense ratio is 0.40% a year, according to its prospectus filed August 27, 2026. In the SEC's standard example ($10,000 invested, a 5% yearly return, and shares sold at the end), the total costs would be about $41 after one year, $128 after three years, $224 after five years and $505 after ten years. Among the similar funds compared, the average was 0.35%.
HYEM vs JNK: what's the difference?
Both charge 0.40%, but they hold different bonds. JNK, the SPDR Bloomberg High Yield Bond ETF, follows a broad high-yield index that isn't limited to emerging markets. HYEM holds only emerging market issuers, with its largest country weights in the Cayman Islands, Argentina and Turkey. JNK is much larger: $7.3 billion in net assets versus HYEM's $521 million. Over three years through October 27, 2026, HYEM's price-based return was 10.5% a year, compared with JNK's 8.7%.
How much did HYEM lose in 2022?
HYEM lost 12.68% in calendar 2022, according to its prospectus. That was its worst full year. From its peak on January 4, 2022, to its low on July 14, it fell 22.8%, as rising interest rates and credit worries pushed bond prices down. It didn't get back to its earlier high until June 13, 2024, about 23 months later. The fund then gained 8.13% in 2023 and 12.43% in 2024.
Is HYEM a risky investment?
Yes, it carries more risk than most bond funds. It holds junk-rated bonds from emerging market companies, and those carry a higher chance of default along with political, legal and settlement risks. In early 2020 it fell 31%, and its worst quarter was -15.16% in the first quarter of 2020. As of July 31, 2026, about 10% of the fund was in Argentina and 9% in Turkey. Its average annual return over 10 years was 5.15% through December 31, 2025.