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EEM vs. VGSH
Performance
Return for Risk
Drawdowns
Volatility
Dividends

EEM vs. VGSH

Last updated Jun 4, 2026

EEM (iShares MSCI Emerging Markets ETF) and VGSH (Vanguard Short-Term Treasury ETF) are both exchange-traded funds - EEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index, while VGSH is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index. Both are passively managed. Over the past 10 years, EEM returned 9.93%/yr vs 1.74%/yr for VGSH. At a correlation of -0.08, they often move in opposite directions. EEM charges 0.72%/yr vs 0.03%/yr for VGSH.

Performance

EEM vs. VGSH - Performance Comparison

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

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Returns By Period

In the year-to-date period, EEM achieves a 27.80% return, which is significantly higher than VGSH's 0.48% return. Over the past 10 years, EEM has outperformed VGSH with an annualized return of 9.93%, while VGSH has yielded a comparatively lower 1.74% 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%

VGSH

1D
-0.03%
1M
0.08%
YTD
0.48%
6M
0.74%
1Y
3.43%
3Y*
4.15%
5Y*
1.81%
10Y*
1.74%
*Multi-year figures are annualized to reflect compound growth (CAGR)

EEM vs. VGSH - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
VGSH
Vanguard Short-Term Treasury ETF		0.48%5.07%4.00%4.31%-3.86%-0.60%3.04%3.52%1.55%0.04%

Correlation

The correlation between EEM and VGSH is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.18

Correlation (3Y)
Calculated over the trailing 3-year period

0.11

Correlation (5Y)
Calculated over the trailing 5-year period

0.08

Correlation (10Y)
Calculated over the trailing 10-year period

-0.04

Correlation (All Time)
Calculated using the full available price history since Nov 24, 2009

-0.08

The correlation between EEM and VGSH shifts across timeframes, from -0.08 (all time) to 0.18 (1 year), reflecting how their relationship changes across market environments.

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 Short-Term Treasury ETF

Often compared with EEM:
EEM vs. VWOEEM vs. SPYEEM vs. IEMGEEM vs. IS3N.DEEEM vs. VXUSEEM vs. EEMSEEM vs. SPEM
Often compared with VGSH:
VGSH vs. sgovVGSH vs. SHVVGSH vs. SHYVGSH vs. SGOVVGSH vs. BNDVGSH vs. VTIPVGSH vs. VCSH

Return for Risk

EEM vs. VGSH — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
EEM
EEM Risk / Return Rank: 8181
Overall Rank
EEM Sharpe Ratio Rank: 8484
Sharpe Ratio Rank
EEM Sortino Ratio Rank: 7979
Sortino Ratio Rank
EEM Omega Ratio Rank: 8383
Omega Ratio Rank
EEM Calmar Ratio Rank: 7979
Calmar Ratio Rank
EEM Martin Ratio Rank: 8080
Martin Ratio Rank
VGSH
VGSH Risk / Return Rank: 8383
Overall Rank
VGSH Sharpe Ratio Rank: 8181
Sharpe Ratio Rank
VGSH Sortino Ratio Rank: 9191
Sortino Ratio Rank
VGSH Omega Ratio Rank: 8888
Omega Ratio Rank
VGSH Calmar Ratio Rank: 7676
Calmar Ratio Rank
VGSH Martin Ratio Rank: 7878
Martin Ratio Rank
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. VGSH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Emerging Markets ETF (EEM) and Vanguard Short-Term Treasury ETF (VGSH). 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.

EEMVGSHDifference

Sharpe ratio

Return per unit of total volatility

2.81

2.68

+0.13

Sortino ratio

Return per unit of downside risk

3.62

4.43

-0.81

Omega ratio

Gain probability vs. loss probability

1.51

1.57

-0.06

Calmar ratio

Return relative to maximum drawdown

4.15

3.90

+0.25

Martin ratio

Return relative to average drawdown

15.99

15.52

+0.47

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. VGSH - Sharpe Ratio Comparison

The current EEM Sharpe Ratio is 2.81, which is comparable to the VGSH Sharpe Ratio of 2.68. The chart below compares the historical Sharpe Ratios of EEM and VGSH, 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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Sharpe Ratios by Period

EEMVGSHDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.81

2.68

+0.13

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.37

0.93

-0.55

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.49

1.11

-0.62

Sharpe Ratio (All Time)

Calculated using the full available price history

0.38

1.01

-0.63

Drawdowns

EEM vs. VGSH - Drawdown Comparison

The maximum EEM drawdown since its inception was -66.43%, which is greater than VGSH's maximum drawdown of -5.70%. Use the drawdown chart below to compare losses from any high point for EEM and VGSH.

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Drawdown Indicators

EEMVGSHDifference

Max Drawdown

Largest peak-to-trough decline

-66.43%

-5.70%

-60.73%

Max Drawdown (1Y)

Largest decline over 1 year

-13.52%

-0.88%

-12.64%

Max Drawdown (3Y)

Largest decline over 3 years

-17.29%

-0.97%

-16.32%

Max Drawdown (5Y)

Largest decline over 5 years

-37.71%

-5.66%

-32.05%

Max Drawdown (10Y)

Largest decline over 10 years

-39.82%

-5.70%

-34.12%

Current Drawdown

Current decline from peak

-1.24%

-0.29%

-0.95%

Average Drawdown

Average peak-to-trough decline

-16.02%

-0.60%

-15.42%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.50%

0.22%

+3.28%

Volatility

EEM vs. VGSH - Volatility Comparison

iShares MSCI Emerging Markets ETF (EEM) has a higher volatility of 8.52% compared to Vanguard Short-Term Treasury ETF (VGSH) at 0.35%. This indicates that EEM's price experiences larger fluctuations and is considered to be riskier than VGSH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

EEMVGSHDifference

Volatility (1M)

Calculated over the trailing 1-month period

8.52%

0.35%

+8.17%

Volatility (6M)

Calculated over the trailing 6-month period

17.42%

0.88%

+16.54%

Volatility (1Y)

Calculated over the trailing 1-year period

19.97%

1.29%

+18.68%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

18.91%

1.97%

+16.94%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

20.50%

1.57%

+18.93%

EEM vs. VGSH - Expense Ratio Comparison

EEM has a 0.72% expense ratio, which is higher than VGSH's 0.03% expense ratio.

Dividends

EEM vs. VGSH - Dividend Comparison

EEM's dividend yield for the trailing twelve months is around 1.74%, less than VGSH's 3.87% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
VGSH
Vanguard Short-Term Treasury ETF		3.87%4.00%4.18%3.31%1.15%0.66%1.74%2.28%1.79%1.10%0.84%0.69%

Frequently Asked Questions

EEM and VGSH have a correlation of 0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

EEM has higher volatility (8.52%) compared to VGSH (0.35%). In terms of maximum drawdown, EEM dropped -66.43% vs VGSH's -5.70%.

On 10-year performance, EEM leads with 9.93% vs 1.74% for VGSH. On fees, VGSH is cheaper at 0.03% per year. On volatility, VGSH has been the lower-risk option at 0.35%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, EEM has performed better with a 9.93% return vs 1.74%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VGSH is cheaper with a 0.03% expense ratio, compared with 0.72% for EEM.

VGSH has the higher dividend yield at 3.87%, compared with 1.74% for EEM.

EEM is categorized as Emerging Markets Diversified, while VGSH is Government Bonds. EEM tracks MSCI Emerging Markets Index, while VGSH tracks Bloomberg U.S. Treasury 1-3 Year Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.72% for EEM and 0.03% for VGSH.

EEM currently has the higher Sharpe Ratio (2.81 vs 2.68), 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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