EEM vs. VWO
Compare and contrast key facts about iShares MSCI Emerging Markets ETF (EEM) and Vanguard FTSE Emerging Markets ETF (VWO).
EEM and VWO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. EEM is a passively managed fund by iShares that tracks the performance of the MSCI Emerging Markets Index. It was launched on Apr 11, 2003. VWO is a passively managed fund by Vanguard that tracks the performance of the FTSE Emerging Index. It was launched on Mar 4, 2005. Both EEM and VWO are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: EEM or VWO.
Key characteristics
| EEM | VWO | |
|---|---|---|
| YTD Return | -0.17% | 0.43% |
| 1Y Return | 5.66% | 7.00% |
| 3Y Return (Ann) | -7.69% | -5.09% |
| 5Y Return (Ann) | 0.55% | 2.15% |
| 10Y Return (Ann) | 2.04% | 3.13% |
| Sharpe Ratio | 0.32 | 0.43 |
| Daily Std Dev | 14.77% | 13.83% |
| Max Drawdown | -66.44% | -67.68% |
| Current Drawdown | -25.78% | -19.15% |
Correlation
The correlation between EEM and VWO is 0.97, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
EEM vs. VWO - Performance Comparison
In the year-to-date period, EEM achieves a -0.17% return, which is significantly lower than VWO's 0.43% return. Over the past 10 years, EEM has underperformed VWO with an annualized return of 2.04%, while VWO has yielded a comparatively higher 3.13% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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EEM vs. VWO - Expense Ratio Comparison
EEM has a 0.68% expense ratio, which is higher than VWO's 0.08% expense ratio.
Risk-Adjusted Performance
EEM vs. VWO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Emerging Markets ETF (EEM) and Vanguard FTSE Emerging Markets ETF (VWO). 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.
Dividends
EEM vs. VWO - Dividend Comparison
EEM's dividend yield for the trailing twelve months is around 2.64%, less than VWO's 3.53% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EEM iShares MSCI Emerging Markets ETF | 2.64% | 2.63% | 2.50% | 1.99% | 1.45% | 2.76% | 2.22% | 1.87% | 1.88% | 2.48% | 2.22% | 2.04% |
VWO Vanguard FTSE Emerging Markets ETF | 3.53% | 3.52% | 4.11% | 2.63% | 1.91% | 3.23% | 2.88% | 2.30% | 2.52% | 3.26% | 2.86% | 2.73% |
Drawdowns
EEM vs. VWO - Drawdown Comparison
The maximum EEM drawdown since its inception was -66.44%, roughly equal to the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for EEM and VWO. For additional features, visit the drawdowns tool.
Volatility
EEM vs. VWO - Volatility Comparison
iShares MSCI Emerging Markets ETF (EEM) has a higher volatility of 3.67% compared to Vanguard FTSE Emerging Markets ETF (VWO) at 3.27%. This indicates that EEM's price experiences larger fluctuations and is considered to be riskier than VWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.