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EEM vs. VBR
Performance
Return for Risk
Drawdowns
Volatility
Dividends

EEM vs. VBR

Last updated Aug 4, 2026
Documentation

EEM (iShares MSCI Emerging Markets ETF) and VBR (Vanguard Small-Cap Value ETF) are both exchange-traded funds - EEM is a Emerging Markets Equities fund tracking the MSCI Emerging Markets Index (Net), while VBR is a Small Cap Value Equities fund tracking the CRSP US Small Cap Value Index. Both are passively managed. Over the past 10 years, EEM returned 8.14%/yr vs 10.67%/yr for VBR. Their 0.68 correlation means they have sometimes moved together and sometimes differently. EEM charges 0.72%/yr vs 0.05%/yr for VBR.

Performance

EEM vs. VBR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Emerging Markets ETF (EEM) and Vanguard Small-Cap Value ETF (VBR). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

The year-to-date returns for both stocks are quite close, with EEM having a 18.18% return and VBR slightly lower at 18.17%. Over the past 10 years, EEM has underperformed VBR with an annualized return of 8.14%, while VBR has yielded a comparatively higher 10.67% annualized return.

EEM

1D
0.36%
1M
-2.10%
6M
9.07%
YTD
18.18%
1Y
36.06%
3Y*
19.44%
5Y*
6.64%
10Y*
8.14%
ALL TIME*
9.89%

VBR

1D
1.27%
1M
1.85%
6M
11.26%
YTD
18.17%
1Y
29.28%
3Y*
15.36%
5Y*
10.29%
10Y*
10.67%
ALL TIME*
9.72%
*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

PositionAvg. Volume Value (2W)Avg. Volume Value (1M)Avg. Volume Value (3M)

EEM

iShares MSCI Emerging Markets ETF
$1.57B$1.56B$1.92B

VBR

Vanguard Small-Cap Value ETF
$57.38M$55.84M$67.82M

EEM vs. VBR - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
EEM
iShares MSCI Emerging Markets ETF		18.18%33.98%6.49%8.95%-20.56%-3.63%17.02%18.22%-15.31%37.26%
VBR
Vanguard Small-Cap Value ETF		18.17%9.09%12.40%16.00%-9.38%28.08%5.90%22.78%-12.28%11.81%

Correlation

The correlation between EEM and VBR is 0.49, which is low. Their historical price movements had little consistent relationship.

Correlation
Correlation (1Y)
Focuses on recent behavior, but can change the most.

0.49

Correlation (3Y)
Balances recent behavior with more history.

0.53

Correlation (5Y)
Shows whether the relationship held over a longer period.

0.58

Correlation (10Y)
Provides a long-term view across more market conditions.

0.57

Correlation (All Time)
Calculated using the full available price history since Jan 30, 2004

0.68

The correlation between EEM and VBR shifts across timeframes, from 0.49 (1 year) to 0.68 (all time), reflecting how their relationship changes across market environments.

EEM vs. VBR - Sectors Allocation Comparison

Sectors
EEM
VBR

Technology

45.9%
10.9%

Financial Services

18.2%
17.5%

Consumer Cyclical

7.4%
13.6%

Industrials

6.2%
17.3%

Communication Services

6.0%
2.4%

Basic Materials

5.4%
5.3%

Energy

3.2%
4.3%

Consumer Defensive

2.5%
4.2%

Healthcare

2.5%
8.4%

Utilities

1.8%
4.9%

Real Estate

1.0%
11.1%

Technology

EEM
45.9%
VBR
10.9%

Financial Services

EEM
18.2%
VBR
17.5%

Consumer Cyclical

EEM
7.4%
VBR
13.6%

Industrials

EEM
6.2%
VBR
17.3%

Communication Services

EEM
6.0%
VBR
2.4%

Basic Materials

EEM
5.4%
VBR
5.3%

Energy

EEM
3.2%
VBR
4.3%

Consumer Defensive

EEM
2.5%
VBR
4.2%

Healthcare

EEM
2.5%
VBR
8.4%

Utilities

EEM
1.8%
VBR
4.9%

Real Estate

EEM
1.0%
VBR
11.1%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares MSCI Emerging Markets ETF

Vanguard Small-Cap Value ETF

Often compared with EEM:
EEM vs. VWOEEM vs. SPYEEM vs. IEMGEEM vs. VXUSEEM vs. IS3N.DEEEM vs. EEMSEEM vs. SPEM
Often compared with VBR:
VBR vs. AVUVVBR vs. VBVBR vs. VOOVBR vs. VBKVBR vs. VTIVBR vs. VIOVVBR vs. VSIAX

Return for Risk

EEM vs. VBR — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.
EEM
EEM Risk / Return Rank: 6464
Overall Rank
EEM Sharpe Ratio Rank: 6262
Sharpe Ratio Rank
EEM Sortino Ratio Rank: 5757
Sortino Ratio Rank
EEM Omega Ratio Rank: 6565
Omega Ratio Rank
EEM Calmar Ratio Rank: 7272
Calmar Ratio Rank
EEM Martin Ratio Rank: 6363
Martin Ratio Rank
VBR
VBR Risk / Return Rank: 8484
Overall Rank
VBR Sharpe Ratio Rank: 8484
Sharpe Ratio Rank
VBR Sortino Ratio Rank: 8686
Sortino Ratio Rank
VBR Omega Ratio Rank: 8181
Omega Ratio Rank
VBR Calmar Ratio Rank: 8585
Calmar Ratio Rank
VBR Martin Ratio Rank: 8585
Martin Ratio Rank
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.

EEM vs. VBR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Emerging Markets ETF (EEM) and Vanguard Small-Cap Value ETF (VBR). 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.

EEMVBRDifference
Sharpe ratioReturn per unit of total volatility
1.48
1.98

-0.50

Sortino ratioReturn per unit of downside risk
2.00
2.91

-0.91

Omega ratioGain probability vs. loss probability

1.28

1.35

-0.07

Calmar ratioReturn relative to maximum drawdown

2.54

3.32

-0.78

Martin ratioReturn relative to average drawdown

7.75

12.14

-4.39

EEM vs. VBR - Sharpe Ratio Comparison

The current EEM Sharpe Ratio is 1.48, which is comparable to the VBR Sharpe Ratio of 1.98. The chart below compares the historical Sharpe Ratios of EEM and VBR, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

EEM vs. VBR - Drawdown Comparison

The maximum EEM drawdown since its inception was -66.43%, which is greater than VBR's maximum drawdown of -61.98%. Use the drawdown chart below to compare losses from any high point for EEM and VBR.

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Drawdown Indicators

EEMVBRDifference

Max Drawdown

Largest peak-to-trough decline

-66.43%

-61.98%

-4.45%

Max Drawdown (1Y)

Largest decline over 1 year

-14.24%

-8.85%

-5.39%

Max Drawdown (3Y)

Largest decline over 3 years

-17.29%

-24.19%

+6.90%

Max Drawdown (5Y)

Largest decline over 5 years

-35.01%

-24.19%

-10.82%

Max Drawdown (10Y)

Largest decline over 10 years

-39.82%

-45.28%

+5.46%

Current Drawdown

Current decline from peak

-9.68%

-0.15%

-9.53%

Average Drawdown

Average peak-to-trough decline

-15.95%

-8.21%

-7.74%

Ulcer Index

Depth and duration of drawdowns from previous peaks

4.67%

2.42%

+2.25%

Volatility

EEM vs. VBR - Volatility Comparison

iShares MSCI Emerging Markets ETF (EEM) has a higher volatility of 9.04% compared to Vanguard Small-Cap Value ETF (VBR) at 3.58%. This indicates that EEM's price experiences larger fluctuations and is considered to be riskier than VBR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

EEMVBRDifference

Volatility (1M)

Calculated over the trailing 1-month period

9.04%

3.58%

+5.46%

Volatility (6M)

Calculated over the trailing 6-month period

22.28%

10.28%

+12.00%

Volatility (1Y)

Calculated over the trailing 1-year period

24.49%

14.86%

+9.63%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

19.84%

19.57%

+0.27%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

20.81%

21.67%

-0.86%

EEM vs. VBR - Expense Ratio Comparison

EEM has a 0.72% expense ratio, which is higher than VBR's 0.05% expense ratio.

Dividends

EEM vs. VBR - Dividend Comparison

EEM's dividend yield for the trailing twelve months is around 1.73%, which matches VBR's 1.74% yield.

PositionTTM20252024202320222021202020192018201720162015
EEM
iShares MSCI Emerging Markets ETF		1.73%2.22%2.43%2.63%2.50%1.99%1.45%2.76%2.24%1.89%1.89%2.49%
VBR
Vanguard Small-Cap Value ETF		1.74%1.95%1.98%2.12%2.03%1.75%1.68%2.06%2.35%1.79%1.77%1.99%

Frequently Asked Questions

EEM and VBR have a correlation of 0.49, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

EEM has higher volatility (9.04%) compared to VBR (3.58%). In terms of maximum drawdown, EEM dropped -66.43% vs VBR's -61.98%.

On 10-year performance, VBR leads with 10.67% vs 8.14% for EEM. On fees, VBR is cheaper at 0.05% per year. On volatility, VBR has been the lower-risk option at 3.58%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VBR has performed better with a 10.67% return vs 8.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VBR is cheaper with a 0.05% expense ratio, compared with 0.72% for EEM.

EEM and VBR have nearly identical dividend yields, around 1.73%.

EEM is categorized as Emerging Markets Equities, while VBR is Small Cap Value Equities. EEM tracks MSCI Emerging Markets Index (Net), while VBR tracks CRSP US Small Cap Value Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.72% for EEM and 0.05% for VBR.

VBR currently has the higher Sharpe Ratio (1.98 vs 1.48), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.

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