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EEM vs. VWO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

EEM vs. VWO

Last updated Aug 2, 2026
Documentation

EEM (iShares MSCI Emerging Markets ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both Emerging Markets Equities funds - EEM tracks the MSCI Emerging Markets Index (Net) while VWO tracks the FTSE Emerging Index. Both are passively managed. Over the past 10 years, EEM returned 8.32%/yr vs 7.86%/yr for VWO. Their 0.97 correlation means they have historically moved very closely together. EEM charges 0.72%/yr vs 0.08%/yr for VWO.

Performance

EEM vs. VWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Emerging Markets ETF (EEM) and Vanguard FTSE Emerging Markets ETF (VWO). 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 17.75% return, which is significantly higher than VWO's 9.41% return. Over the past 10 years, EEM has outperformed VWO with an annualized return of 8.32%, while VWO has yielded a comparatively lower 7.86% 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%

VWO

1D
0.96%
1M
-0.49%
6M
4.16%
YTD
9.41%
1Y
21.69%
3Y*
14.84%
5Y*
6.08%
10Y*
7.86%
ALL TIME*
6.81%
*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

PositionAvg. Volume Value (2W)Avg. Volume Value (1M)Avg. Volume Value (3M)

EEM

iShares MSCI Emerging Markets ETF
$1.56B$1.60B$1.90B

VWO

Vanguard FTSE Emerging Markets ETF
$386.61M$469.40M$499.89M

EEM vs. VWO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
VWO
Vanguard FTSE Emerging Markets ETF		9.41%25.60%10.59%9.25%-17.98%1.26%15.17%20.75%-14.76%31.49%

Correlation

The correlation between EEM and VWO is 0.94, meaning they have usually moved in the same direction, including during past declines.

Correlation
Correlation (1Y)
Focuses on recent behavior, but can change the most.

0.95

Correlation (3Y)
Balances recent behavior with more history.

0.97

Correlation (5Y)
Shows whether the relationship held over a longer period.

0.98

Correlation (10Y)
Provides a long-term view across more market conditions.

0.98

Correlation (All Time)
Calculated using the full available price history since Mar 10, 2005

0.97

The correlation between EEM and VWO has been stable across timeframes, ranging from 0.94 to 0.98 - a consistent structural relationship.

EEM vs. VWO - Sectors Allocation Comparison

Sectors
EEM
VWO

Technology

45.9%
34.2%

Financial Services

18.2%
19.4%

Consumer Cyclical

7.4%
9.1%

Industrials

6.2%
7.9%

Communication Services

6.0%
6.6%

Basic Materials

5.4%
7.2%

Energy

3.2%
3.8%

Consumer Defensive

2.5%
3.3%

Healthcare

2.5%
3.7%

Utilities

1.8%
2.8%

Real Estate

1.0%
2.0%

Technology

EEM
45.9%
VWO
34.2%

Financial Services

EEM
18.2%
VWO
19.4%

Consumer Cyclical

EEM
7.4%
VWO
9.1%

Industrials

EEM
6.2%
VWO
7.9%

Communication Services

EEM
6.0%
VWO
6.6%

Basic Materials

EEM
5.4%
VWO
7.2%

Energy

EEM
3.2%
VWO
3.8%

Consumer Defensive

EEM
2.5%
VWO
3.3%

Healthcare

EEM
2.5%
VWO
3.7%

Utilities

EEM
1.8%
VWO
2.8%

Real Estate

EEM
1.0%
VWO
2.0%

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 FTSE Emerging Markets ETF

Often compared with EEM:
EEM vs. SPYEEM vs. IEMGEEM vs. VXUSEEM vs. IS3N.DEEEM vs. EEMSEEM vs. SPEMEEM vs. VOO
Often compared with VWO:
VWO vs. VEAVWO vs. IEMGVWO vs. VXUSVWO vs. VOOVWO vs. VTIVWO vs. VEMAXVWO vs. SCHE

Return for Risk

EEM vs. VWO — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.
EEM
EEM Risk / Return Rank: 6363
Overall Rank
EEM Sharpe Ratio Rank: 6161
Sharpe Ratio Rank
EEM Sortino Ratio Rank: 5656
Sortino Ratio Rank
EEM Omega Ratio Rank: 6464
Omega Ratio Rank
EEM Calmar Ratio Rank: 7171
Calmar Ratio Rank
EEM Martin Ratio Rank: 6363
Martin Ratio Rank
VWO
VWO Risk / Return Rank: 5151
Overall Rank
VWO Sharpe Ratio Rank: 4949
Sharpe Ratio Rank
VWO Sortino Ratio Rank: 4848
Sortino Ratio Rank
VWO Omega Ratio Rank: 4949
Omega Ratio Rank
VWO Calmar Ratio Rank: 5454
Calmar Ratio Rank
VWO Martin Ratio Rank: 5353
Martin Ratio Rank
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. VWO - Risk-Adjusted Trends 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.

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.

EEMVWODifference
Sharpe ratioReturn per unit of total volatility
1.42
1.20

+0.22

Sortino ratioReturn per unit of downside risk
1.93
1.72

+0.21

Omega ratioGain probability vs. loss probability

1.27

1.22

+0.05

Calmar ratioReturn relative to maximum drawdown

2.44

1.89

+0.54

Martin ratioReturn relative to average drawdown

7.49

6.16

+1.33

EEM vs. VWO - Sharpe Ratio Comparison

The current EEM Sharpe Ratio is 1.42, which is comparable to the VWO Sharpe Ratio of 1.20. The chart below compares the historical Sharpe Ratios of EEM and VWO, 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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Drawdowns

EEM vs. VWO - Drawdown Comparison

The maximum EEM drawdown since its inception was -66.43%, 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.

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Drawdown Indicators

EEMVWODifference

Max Drawdown

Largest peak-to-trough decline

-66.43%

-67.68%

+1.25%

Max Drawdown (1Y)

Largest decline over 1 year

-14.24%

-11.17%

-3.07%

Max Drawdown (3Y)

Largest decline over 3 years

-17.29%

-17.37%

+0.08%

Max Drawdown (5Y)

Largest decline over 5 years

-35.01%

-30.88%

-4.13%

Max Drawdown (10Y)

Largest decline over 10 years

-39.82%

-36.39%

-3.43%

Current Drawdown

Current decline from peak

-10.00%

-4.07%

-5.93%

Average Drawdown

Average peak-to-trough decline

-15.95%

-15.73%

-0.22%

Ulcer Index

Depth and duration of drawdowns from previous peaks

4.63%

3.43%

+1.20%

Volatility

EEM vs. VWO - Volatility Comparison

iShares MSCI Emerging Markets ETF (EEM) has a higher volatility of 9.09% compared to Vanguard FTSE Emerging Markets ETF (VWO) at 5.58%. 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.

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Volatility by Period

EEMVWODifference

Volatility (1M)

Calculated over the trailing 1-month period

9.09%

5.58%

+3.51%

Volatility (6M)

Calculated over the trailing 6-month period

22.40%

15.22%

+7.18%

Volatility (1Y)

Calculated over the trailing 1-year period

24.46%

17.58%

+6.88%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

19.83%

17.56%

+2.27%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

20.80%

19.17%

+1.63%

EEM vs. VWO - Expense Ratio Comparison

EEM has a 0.72% expense ratio, which is higher than VWO's 0.08% expense ratio.

Dividends

EEM vs. VWO - Dividend Comparison

EEM's dividend yield for the trailing twelve months is around 1.74%, less than VWO's 2.35% 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%
VWO
Vanguard FTSE Emerging Markets ETF		2.35%2.79%3.20%3.52%4.11%2.63%1.91%3.23%2.88%2.30%2.52%3.26%

Frequently Asked Questions

With a correlation of 0.94, EEM and VWO move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

EEM has higher volatility (9.09%) compared to VWO (5.58%). In terms of maximum drawdown, EEM dropped -66.43% vs VWO's -67.68%.

On 10-year performance, EEM leads with 8.32% vs 7.86% for VWO. On fees, VWO is cheaper at 0.08% per year. On volatility, VWO has been the lower-risk option at 5.58%. 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 8.32% return vs 7.86%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VWO is cheaper with a 0.08% expense ratio, compared with 0.72% for EEM.

VWO has the higher dividend yield at 2.35%, compared with 1.74% for EEM.

EEM tracks MSCI Emerging Markets Index (Net), while VWO tracks FTSE Emerging Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.72% for EEM and 0.08% for VWO.

EEM currently has the higher Sharpe Ratio (1.42 vs 1.20), 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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