EEM vs. VOO

Last updated Aug 2, 2026

EEM (iShares MSCI Emerging Markets ETF) and VOO (Vanguard S&P 500 ETF) are both exchange-traded funds - EEM is a Emerging Markets Equities fund tracking the MSCI Emerging Markets Index (Net), while VOO is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, EEM returned 8.32%/yr vs 15.14%/yr for VOO. Their 0.72 correlation means they have sometimes moved together and sometimes differently. EEM charges 0.72%/yr vs 0.03%/yr for VOO.

Performance

EEM vs. VOO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Emerging Markets ETF (EEM) and Vanguard S&P 500 ETF (VOO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, EEM achieves a 17.75% return, which is significantly higher than VOO's 10.16% return. Over the past 10 years, EEM has underperformed VOO with an annualized return of 8.32%, while VOO has yielded a comparatively higher 15.14% annualized return.

EEM

• 1D: 0.79%
• 1M: -2.45%
• 6M: 9.01%
• YTD: 17.75%
• 1Y: 35.57%
• 3Y*: 18.45%
• 5Y*: 6.91%
• 10Y*: 8.32%
• ALL TIME*: 9.87%

VOO

• 1D: 0.71%
• 1M: 0.26%
• 6M: 8.58%
• YTD: 10.16%
• 1Y: 21.58%
• 3Y*: 19.42%
• 5Y*: 12.83%
• 10Y*: 15.14%
• ALL TIME*: 14.78%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
EEM iShares MSCI Emerging Markets ETF	$1.56B	$1.60B	$1.90B
VOO Vanguard S&P 500 ETF	$3.82B	$3.78B	$5.44B

EEM vs. VOO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EEM iShares MSCI Emerging Markets ETF	17.75%	33.98%	6.49%	8.95%	-20.56%	-3.63%	17.02%	18.22%	-15.31%	37.26%
VOO Vanguard S&P 500 ETF	10.16%	17.82%	24.98%	26.32%	-18.17%	28.79%	18.32%	31.37%	-4.50%	21.77%

Correlation

The correlation between EEM and VOO is 0.76, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.76
Correlation (3Y) Balances recent behavior with more history.	0.67
Correlation (5Y) Shows whether the relationship held over a longer period.	0.66
Correlation (10Y) Provides a long-term view across more market conditions.	0.68
Correlation (All Time) Calculated using the full available price history since Sep 9, 2010	0.72

The correlation between EEM and VOO shifts across timeframes, from 0.66 (5 years) to 0.76 (1 year), reflecting how their relationship changes across market environments.

EEM vs. VOO - Sectors Allocation Comparison

Sectors	EEM	VOO
Technology	45.9%	38.6%
Financial Services	18.2%	11.4%
Consumer Cyclical	7.4%	9.5%
Industrials	6.2%	8.5%
Communication Services	6.0%	9.9%
Basic Materials	5.4%	1.7%
Energy	3.2%	3.0%
Consumer Defensive	2.5%	4.5%
Healthcare	2.5%	8.9%
Utilities	1.8%	2.2%
Real Estate	1.0%	1.8%

Return for Risk

EEM vs. VOO — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

EEM

EEM Risk / Return Rank: 63
EEM Sharpe Ratio Rank: 61
EEM Sortino Ratio Rank: 56
EEM Omega Ratio Rank: 64
EEM Calmar Ratio Rank: 71
EEM Martin Ratio Rank: 63

VOO

VOO Risk / Return Rank: 68
VOO Sharpe Ratio Rank: 68
VOO Sortino Ratio Rank: 65
VOO Omega Ratio Rank: 66
VOO Calmar Ratio Rank: 64
VOO Martin Ratio Rank: 76

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. VOO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Emerging Markets ETF (EEM) and Vanguard S&P 500 ETF (VOO). 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	VOO	Difference
Sharpe ratio: Return per unit of total volatility	1.42	1.53	-0.11
Sortino ratio: Return per unit of downside risk	1.93	2.13	-0.20
Omega ratio: Gain probability vs. loss probability	1.27	1.28	0.00
Calmar ratio: Return relative to maximum drawdown	2.44	2.21	+0.23
Martin ratio: Return relative to average drawdown	7.49	9.44	-1.94

EEM vs. VOO - Sharpe Ratio Comparison

The current EEM Sharpe Ratio is 1.42, which is comparable to the VOO Sharpe Ratio of 1.53. The chart below compares the historical Sharpe Ratios of EEM and VOO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

EEM vs. VOO - Drawdown Comparison

The maximum EEM drawdown since its inception was -66.43%, which is greater than VOO's maximum drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for EEM and VOO.

Drawdown Indicators

	EEM	VOO	Difference
Max Drawdown Largest peak-to-trough decline	-66.43%	-33.99%	-32.44%
Max Drawdown (1Y) Largest decline over 1 year	-14.24%	-8.90%	-5.34%
Max Drawdown (3Y) Largest decline over 3 years	-17.29%	-18.69%	+1.40%
Max Drawdown (5Y) Largest decline over 5 years	-35.01%	-24.52%	-10.49%
Max Drawdown (10Y) Largest decline over 10 years	-39.82%	-33.99%	-5.83%
Current Drawdown Current decline from peak	-10.00%	-1.38%	-8.62%
Average Drawdown Average peak-to-trough decline	-15.95%	-3.67%	-12.28%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.63%	2.08%	+2.55%

Volatility

EEM vs. VOO - Volatility Comparison

iShares MSCI Emerging Markets ETF (EEM) has a higher volatility of 9.09% compared to Vanguard S&P 500 ETF (VOO) at 3.54%. This indicates that EEM's price experiences larger fluctuations and is considered to be riskier than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EEM	VOO	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.09%	3.54%	+5.55%
Volatility (6M) Calculated over the trailing 6-month period	22.40%	10.10%	+12.30%
Volatility (1Y) Calculated over the trailing 1-year period	24.46%	12.82%	+11.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.83%	16.93%	+2.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.80%	18.01%	+2.79%

EEM vs. VOO - Expense Ratio Comparison

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

Dividends

EEM vs. VOO - Dividend Comparison

EEM's dividend yield for the trailing twelve months is around 1.74%, more than VOO's 1.07% 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%
VOO Vanguard S&P 500 ETF	1.07%	1.13%	1.24%	1.46%	1.69%	1.25%	1.54%	1.88%	2.06%	1.78%	2.02%	2.10%

Frequently Asked Questions

Can I hold both EEM and VOO in my portfolio?

EEM and VOO have a correlation of 0.76, 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 VOO?

EEM has higher volatility (9.09%) compared to VOO (3.54%). In terms of maximum drawdown, EEM dropped -66.43% vs VOO's -33.99%.

Which ETF is better, EEM or VOO?

On 10-year performance, VOO leads with 15.14% vs 8.32% for EEM. On fees, VOO is cheaper at 0.03% per year. On volatility, VOO has been the lower-risk option at 3.54%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EEM or VOO?

Over the 10-year period, VOO has performed better with a 15.14% return vs 8.32%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EEM or VOO?

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

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

EEM has the higher dividend yield at 1.74%, compared with 1.07% for VOO.

What is the main difference between EEM and VOO?

EEM is categorized as Emerging Markets Equities, while VOO is S&P 500. EEM tracks MSCI Emerging Markets Index (Net), while VOO tracks S&P 500 Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.72% for EEM and 0.03% for VOO.

Which has better risk-adjusted returns?

VOO currently has the higher Sharpe Ratio (1.53 vs 1.42), 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.