EEM vs. VNQ
EEM (iShares MSCI Emerging Markets ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - EEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index (Net), while VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index. Both are passively managed. Over the past 10 years, EEM returned 9.87%/yr vs 5.44%/yr for VNQ. A 0.51 correlation means they provide meaningful diversification when combined. EEM charges 0.72%/yr vs 0.13%/yr for VNQ.
Performance
EEM vs. VNQ - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, EEM achieves a 23.41% return, which is significantly higher than VNQ's 11.77% return. Over the past 10 years, EEM has outperformed VNQ with an annualized return of 9.87%, while VNQ has yielded a comparatively lower 5.44% annualized return.
EEM
- 1D
- -5.67%
- 1M
- 2.49%
- YTD
- 23.41%
- 6M
- 24.32%
- 1Y
- 46.62%
- 3Y*
- 22.58%
- 5Y*
- 6.54%
- 10Y*
- 9.87%
VNQ
- 1D
- 1.31%
- 1M
- 1.13%
- YTD
- 11.77%
- 6M
- 12.16%
- 1Y
- 11.59%
- 3Y*
- 11.30%
- 5Y*
- 2.83%
- 10Y*
- 5.44%
EEM vs. VNQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
EEM iShares MSCI Emerging Markets ETF | 23.41% | 33.98% | 6.49% | 8.95% | -20.56% | -3.63% | 17.02% | 18.22% | -15.31% | 37.26% |
VNQ Vanguard Real Estate ETF | 11.77% | 3.24% | 4.81% | 11.85% | -26.25% | 40.54% | -4.61% | 28.91% | -6.03% | 4.90% |
Correlation
The correlation between EEM and VNQ is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.21 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.35 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.40 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.39 |
Correlation (All Time) Calculated using the full available price history since Sep 29, 2004 | 0.51 |
Over the past year, the correlation between EEM and VNQ has dropped to 0.21 - well below their long-term average of 0.51, suggesting their price drivers have been diverging.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
EEM vs. VNQ — Risk / Return Rank
EEM
VNQ
EEM vs. VNQ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Emerging Markets ETF (EEM) and Vanguard Real Estate ETF (VNQ). 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.
| EEM | VNQ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.21 | ||
| Sortino ratioReturn per unit of downside risk | +1.40 | ||
| Omega ratioGain probability vs. loss probability | 1.39 | 1.15 | +0.24 |
| Calmar ratioReturn relative to maximum drawdown | 3.46 | 1.40 | +2.07 |
| Martin ratioReturn relative to average drawdown | 12.70 | 4.37 | +8.33 |
Loading charts...
Drawdowns
EEM vs. VNQ - Drawdown Comparison
The maximum EEM drawdown since its inception was -66.43%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for EEM and VNQ.
Loading charts...
Drawdown Indicators
| EEM | VNQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -66.43% | -73.07% | +6.64% |
Max Drawdown (1Y)Largest decline over 1 year | -13.52% | -8.34% | -5.18% |
Max Drawdown (3Y)Largest decline over 3 years | -17.29% | -17.46% | +0.17% |
Max Drawdown (5Y)Largest decline over 5 years | -37.49% | -34.48% | -3.01% |
Max Drawdown (10Y)Largest decline over 10 years | -39.82% | -42.40% | +2.58% |
Current DrawdownCurrent decline from peak | -5.67% | -0.66% | -5.01% |
Average DrawdownAverage peak-to-trough decline | -15.99% | -13.60% | -2.39% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.68% | 2.66% | +1.02% |
Volatility
EEM vs. VNQ - Volatility Comparison
iShares MSCI Emerging Markets ETF (EEM) has a higher volatility of 12.59% compared to Vanguard Real Estate ETF (VNQ) at 5.19%. This indicates that EEM's price experiences larger fluctuations and is considered to be riskier than VNQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| EEM | VNQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 12.59% | 5.19% | +7.40% |
Volatility (6M)Calculated over the trailing 6-month period | 20.73% | 10.20% | +10.53% |
Volatility (1Y)Calculated over the trailing 1-year period | 22.77% | 13.84% | +8.93% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.55% | 18.86% | +0.69% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.67% | 20.75% | -0.08% |
EEM vs. VNQ - Expense Ratio Comparison
EEM has a 0.72% expense ratio, which is higher than VNQ's 0.13% expense ratio.
Dividends
EEM vs. VNQ - Dividend Comparison
EEM's dividend yield for the trailing twelve months is around 1.66%, less than VNQ's 3.56% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EEM iShares MSCI Emerging Markets ETF | 1.66% | 2.22% | 2.43% | 2.63% | 2.50% | 1.99% | 1.45% | 2.76% | 2.24% | 1.89% | 1.89% | 2.49% |
VNQ Vanguard Real Estate ETF | 3.56% | 3.92% | 3.85% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% |
Frequently Asked Questions
EEM and VNQ have a correlation of 0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
EEM has higher volatility (12.59%) compared to VNQ (5.19%). In terms of maximum drawdown, EEM dropped -66.43% vs VNQ's -73.07%.
On 10-year performance, EEM leads with 9.87% vs 5.44% for VNQ. On fees, VNQ is cheaper at 0.13% per year. On volatility, VNQ has been the lower-risk option at 5.19%. 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 9.87% return vs 5.44%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VNQ is cheaper with a 0.13% expense ratio, compared with 0.72% for EEM.
VNQ has the higher dividend yield at 3.56%, compared with 1.66% for EEM.
EEM is categorized as Emerging Markets Diversified, while VNQ is REIT. EEM tracks MSCI Emerging Markets Index (Net), while VNQ tracks MSCI US Investable Market Real Estate 25/50 Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.72% for EEM and 0.13% for VNQ.
EEM currently has the higher Sharpe Ratio (2.06 vs 0.85), 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.
Find the right allocation for EEM and VNQ
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer