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EEM vs. VWO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

EEM vs. VWO

Last updated Apr 12, 2026

EEM (iShares MSCI Emerging Markets ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both exchange-traded funds — EEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index, while VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index. Both are passively managed. Over the past 10 years, EEM returned 8.21%/yr vs 8.10%/yr for VWO. With a 0.97 correlation, they move nearly in lockstep. 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 10.69% return, which is significantly higher than VWO's 5.56% return. Both investments have delivered pretty close results over the past 10 years, with EEM having a 8.21% annualized return and VWO not far behind at 8.10%.

EEM

1D
0.46%
1M
6.34%
YTD
10.69%
6M
18.27%
1Y
48.55%
3Y*
18.02%
5Y*
4.91%
10Y*
8.21%

VWO

1D
0.55%
1M
4.49%
YTD
5.56%
6M
10.14%
1Y
35.34%
3Y*
15.31%
5Y*
4.99%
10Y*
8.10%
*Multi-year figures are annualized to reflect compound growth (CAGR)

EEM vs. VWO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
EEM
iShares MSCI Emerging Markets ETF		10.69%33.98%6.49%8.95%-20.56%-3.63%17.02%18.22%-15.31%37.26%
VWO
Vanguard FTSE Emerging Markets ETF		5.56%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 0.97 — these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

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

0.97

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

0.98

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

0.98

Correlation (All Time)
Calculated using the full available price history since Mar 11, 2005

0.97

The correlation between EEM and VWO has been stable across timeframes, ranging from 0.97 to 0.98 — a consistent structural relationship.

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

Return for Risk

EEM vs. VWO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
EEM
EEM Risk / Return Rank: 8080
Overall Rank
EEM Sharpe Ratio Rank: 8484
Sharpe Ratio Rank
EEM Sortino Ratio Rank: 7979
Sortino Ratio Rank
EEM Omega Ratio Rank: 8484
Omega Ratio Rank
EEM Calmar Ratio Rank: 7575
Calmar Ratio Rank
EEM Martin Ratio Rank: 7777
Martin Ratio Rank
VWO
VWO Risk / Return Rank: 7171
Overall Rank
VWO Sharpe Ratio Rank: 7474
Sharpe Ratio Rank
VWO Sortino Ratio Rank: 7272
Sortino Ratio Rank
VWO Omega Ratio Rank: 7373
Omega Ratio Rank
VWO Calmar Ratio Rank: 6868
Calmar Ratio Rank
VWO Martin Ratio Rank: 6767
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. 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.

EEMVWODifference

Sharpe ratio

Return per unit of total volatility

2.93

2.55

+0.38

Sortino ratio

Return per unit of downside risk

3.80

3.50

+0.30

Omega ratio

Gain probability vs. loss probability

1.55

1.48

+0.07

Calmar ratio

Return relative to maximum drawdown

4.51

4.14

+0.37

Martin ratio

Return relative to average drawdown

17.80

15.31

+2.49

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. VWO - Sharpe Ratio Comparison

The current EEM Sharpe Ratio is 2.93, which is comparable to the VWO Sharpe Ratio of 2.55. 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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Sharpe Ratios by Period

EEMVWODifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.93

2.55

+0.38

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.27

0.29

-0.02

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.40

0.42

-0.02

Sharpe Ratio (All Time)

Calculated using the full available price history

0.36

0.26

+0.10

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

-13.52%

-11.17%

-2.35%

Max Drawdown (5Y)

Largest decline over 5 years

-37.82%

-32.80%

-5.02%

Max Drawdown (10Y)

Largest decline over 10 years

-39.82%

-36.39%

-3.43%

Current Drawdown

Current decline from peak

-4.34%

-3.83%

-0.51%

Average Drawdown

Average peak-to-trough decline

-16.11%

-15.92%

-0.19%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.43%

3.02%

+0.41%

Volatility

EEM vs. VWO - Volatility Comparison

iShares MSCI Emerging Markets ETF (EEM) has a higher volatility of 10.52% compared to Vanguard FTSE Emerging Markets ETF (VWO) at 8.43%. 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

10.52%

8.43%

+2.09%

Volatility (6M)

Calculated over the trailing 6-month period

16.03%

13.00%

+3.03%

Volatility (1Y)

Calculated over the trailing 1-year period

18.45%

15.55%

+2.90%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

18.58%

17.29%

+1.29%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

20.36%

19.19%

+1.17%

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 2.01%, less than VWO's 2.56% yield.

TTM20252024202320222021202020192018201720162015
EEM
iShares MSCI Emerging Markets ETF		2.01%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		2.56%2.79%3.20%3.52%4.11%2.63%1.91%3.23%2.88%2.30%2.52%3.26%