EEM vs. VBR

Last updated Jun 4, 2026

EEM (iShares MSCI Emerging Markets ETF) and VBR (Vanguard Small-Cap Value ETF) are both exchange-traded funds - EEM is a Emerging Markets Diversified 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 9.93%/yr vs 10.53%/yr for VBR. A 0.68 correlation means they provide meaningful diversification when combined. 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.

Returns By Period

In the year-to-date period, EEM achieves a 27.80% return, which is significantly higher than VBR's 11.67% return. Over the past 10 years, EEM has underperformed VBR with an annualized return of 9.93%, while VBR has yielded a comparatively higher 10.53% annualized return.

EEM

• 1D: -1.24%
• 1M: 9.08%
• YTD: 27.80%
• 6M: 30.51%
• 1Y: 55.80%
• 3Y*: 23.95%
• 5Y*: 7.01%
• 10Y*: 9.93%

VBR

• 1D: -0.39%
• 1M: 2.39%
• YTD: 11.67%
• 6M: 11.95%
• 1Y: 25.78%
• 3Y*: 16.44%
• 5Y*: 7.95%
• 10Y*: 10.53%

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

EEM vs. VBR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EEM iShares MSCI Emerging Markets ETF	27.80%	33.98%	6.49%	8.95%	-20.56%	-3.63%	17.02%	18.22%	-15.31%	37.26%
VBR Vanguard Small-Cap Value ETF	11.67%	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 0.55, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.55
Correlation (3Y) Calculated over the trailing 3-year period	0.56
Correlation (5Y) Calculated over the trailing 5-year period	0.58
Correlation (10Y) Calculated over the trailing 10-year period	0.59
Correlation (All Time) Calculated using the full available price history since Feb 2, 2004	0.68

The correlation between EEM and VBR shifts across timeframes, from 0.55 (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	43.6%	10.6%
Financial Services	17.5%	17.6%
Consumer Cyclical	8.1%	12.4%
Industrials	6.2%	18.1%
Basic Materials	6.1%	6.3%
Communication Services	5.7%	2.5%
Energy	3.3%	5.2%
Consumer Defensive	2.7%	4.0%
Healthcare	2.5%	7.9%
Utilities	2.0%	4.8%
Real Estate	0.9%	10.1%

Return for Risk

EEM vs. VBR — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

EEM

EEM Risk / Return Rank: 81
EEM Sharpe Ratio Rank: 84
EEM Sortino Ratio Rank: 79
EEM Omega Ratio Rank: 83
EEM Calmar Ratio Rank: 79
EEM Martin Ratio Rank: 80

VBR

VBR Risk / Return Rank: 52
VBR Sharpe Ratio Rank: 49
VBR Sortino Ratio Rank: 50
VBR Omega Ratio Rank: 46
VBR Calmar Ratio Rank: 58
VBR Martin Ratio Rank: 58

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

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.

	EEM	VBR	Difference
Sharpe ratio: Return per unit of total volatility	2.81	1.71	+1.10
Sortino ratio: Return per unit of downside risk	3.62	2.52	+1.09
Omega ratio: Gain probability vs. loss probability	1.51	1.30	+0.21
Calmar ratio: Return relative to maximum drawdown	4.15	2.93	+1.22
Martin ratio: Return relative to average drawdown	15.99	10.32	+5.66
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EEM vs. VBR - Sharpe Ratio Comparison

The current EEM Sharpe Ratio is 2.81, which is higher than the VBR Sharpe Ratio of 1.71. 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.

Sharpe Ratios by Period

	EEM	VBR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.81	1.71	+1.10
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.37	0.40	-0.03
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.49	0.49	0.00
Sharpe Ratio (All Time) Calculated using the full available price history	0.38	0.42	-0.04

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.

Drawdown Indicators

	EEM	VBR	Difference
Max Drawdown Largest peak-to-trough decline	-66.43%	-61.98%	-4.45%
Max Drawdown (1Y) Largest decline over 1 year	-13.52%	-8.85%	-4.67%
Max Drawdown (3Y) Largest decline over 3 years	-17.29%	-24.19%	+6.90%
Max Drawdown (5Y) Largest decline over 5 years	-37.71%	-24.19%	-13.52%
Max Drawdown (10Y) Largest decline over 10 years	-39.82%	-45.28%	+5.46%
Current Drawdown Current decline from peak	-1.24%	-0.39%	-0.85%
Average Drawdown Average peak-to-trough decline	-16.02%	-8.27%	-7.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.50%	2.50%	+1.00%

Volatility

EEM vs. VBR - Volatility Comparison

iShares MSCI Emerging Markets ETF (EEM) has a higher volatility of 8.52% compared to Vanguard Small-Cap Value ETF (VBR) at 3.96%. 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.

Volatility by Period

	EEM	VBR	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.52%	3.96%	+4.56%
Volatility (6M) Calculated over the trailing 6-month period	17.42%	10.46%	+6.96%
Volatility (1Y) Calculated over the trailing 1-year period	19.97%	15.17%	+4.80%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.91%	19.77%	-0.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.50%	21.73%	-1.23%

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 1.74%, less than VBR's 1.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EEM iShares MSCI Emerging Markets ETF	1.74%	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	1.76%	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

Can I hold both EEM and VBR in my portfolio?

EEM and VBR have a correlation of 0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EEM or VBR?

EEM has higher volatility (8.52%) compared to VBR (3.96%). In terms of maximum drawdown, EEM dropped -66.43% vs VBR's -61.98%.

Which ETF is better, EEM or VBR?

On 10-year performance, VBR leads with 10.53% vs 9.93% for EEM. On fees, VBR is cheaper at 0.05% per year. On volatility, VBR has been the lower-risk option at 3.96%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EEM or VBR?

Over the 10-year period, VBR has performed better with a 10.53% return vs 9.93%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EEM or VBR?

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

Which ETF pays a higher dividend yield, EEM or VBR?

VBR has the higher dividend yield at 1.76%, compared with 1.74% for EEM.

What is the main difference between EEM and VBR?

EEM is categorized as Emerging Markets Diversified, 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.

Which has better risk-adjusted returns?

EEM currently has the higher Sharpe Ratio (2.81 vs 1.71), 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.