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EEMS vs. VWO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

EEMS vs. VWO

Last updated Aug 2, 2026
Documentation

EEMS (iShares MSCI Emerging Markets Small-Cap ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both Emerging Markets Equities funds - EEMS tracks the MSCI Emerging Markets Small Cap Index while VWO tracks the FTSE Emerging Index. Both are passively managed. Over the past 10 years, EEMS returned 7.78%/yr vs 7.86%/yr for VWO. Their correlation of 0.84 means they have usually moved in the same direction. EEMS charges 0.73%/yr vs 0.08%/yr for VWO.

Performance

EEMS vs. VWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Emerging Markets Small-Cap ETF (EEMS) 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, EEMS achieves a 3.97% return, which is significantly lower than VWO's 9.41% return. Both investments have delivered pretty close results over the past 10 years, with EEMS having a 7.78% annualized return and VWO not far ahead at 7.86%.

EEMS

1D
0.35%
1M
-6.86%
6M
-2.58%
YTD
3.97%
1Y
12.59%
3Y*
10.45%
5Y*
4.98%
10Y*
7.78%
ALL TIME*
5.02%

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)

EEMS

iShares MSCI Emerging Markets Small-Cap ETF
$1.19M$5.05M$6.10M

VWO

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

EEMS vs. VWO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
EEMS
iShares MSCI Emerging Markets Small-Cap ETF		3.97%19.78%3.13%23.09%-19.12%18.12%19.47%11.25%-18.98%34.80%
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 EEMS and VWO is 0.88, 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.

0.88

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

0.86

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

0.87

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

0.88

Correlation (All Time)
Calculated using the full available price history since Aug 18, 2011

0.84

The correlation between EEMS and VWO has been stable across timeframes, ranging from 0.84 to 0.88 - a consistent structural relationship.

EEMS vs. VWO - Sectors Allocation Comparison

Sectors
EEMS
VWO

Technology

26.4%
34.2%

Industrials

18.3%
7.9%

Consumer Cyclical

10.3%
9.1%

Financial Services

10.3%
19.4%

Healthcare

8.6%
3.7%

Basic Materials

8.5%
7.2%

Real Estate

5.6%
2.0%

Consumer Defensive

4.9%
3.3%

Communication Services

2.7%
6.6%

Utilities

2.7%
2.8%

Energy

2.0%
3.8%

Technology

EEMS
26.4%
VWO
34.2%

Industrials

EEMS
18.3%
VWO
7.9%

Consumer Cyclical

EEMS
10.3%
VWO
9.1%

Financial Services

EEMS
10.3%
VWO
19.4%

Healthcare

EEMS
8.6%
VWO
3.7%

Basic Materials

EEMS
8.5%
VWO
7.2%

Real Estate

EEMS
5.6%
VWO
2.0%

Consumer Defensive

EEMS
4.9%
VWO
3.3%

Communication Services

EEMS
2.7%
VWO
6.6%

Utilities

EEMS
2.7%
VWO
2.8%

Energy

EEMS
2.0%
VWO
3.8%

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 Small-Cap ETF

Vanguard FTSE Emerging Markets ETF

Often compared with EEMS:
EEMS vs. EEMEEMS vs. EWXEEMS vs. EDIVEEMS vs. AVEEEEMS vs. EYLDEEMS vs. DRESXEEMS vs. ECOW
Often compared with VWO:
VWO vs. VEAVWO vs. IEMGVWO vs. VXUSVWO vs. EEMVWO vs. VOOVWO vs. VTIVWO vs. VEMAX

Return for Risk

EEMS vs. VWO — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.
EEMS
EEMS Risk / Return Rank: 2828
Overall Rank
EEMS Sharpe Ratio Rank: 2727
Sharpe Ratio Rank
EEMS Sortino Ratio Rank: 2626
Sortino Ratio Rank
EEMS Omega Ratio Rank: 2727
Omega Ratio Rank
EEMS Calmar Ratio Rank: 2828
Calmar Ratio Rank
EEMS Martin Ratio Rank: 3232
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.

EEMS vs. VWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Emerging Markets Small-Cap ETF (EEMS) 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.

EEMSVWODifference
Sharpe ratioReturn per unit of total volatility
0.62
1.20

-0.58

Sortino ratioReturn per unit of downside risk
0.95
1.72

-0.77

Omega ratioGain probability vs. loss probability

1.13

1.22

-0.09

Calmar ratioReturn relative to maximum drawdown

0.93

1.89

-0.97

Martin ratioReturn relative to average drawdown

3.00

6.16

-3.16

EEMS vs. VWO - Sharpe Ratio Comparison

The current EEMS Sharpe Ratio is 0.62, which is lower than the VWO Sharpe Ratio of 1.20. The chart below compares the historical Sharpe Ratios of EEMS 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

EEMS vs. VWO - Drawdown Comparison

The maximum EEMS drawdown since its inception was -48.89%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for EEMS and VWO.

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Drawdown Indicators

EEMSVWODifference

Max Drawdown

Largest peak-to-trough decline

-48.89%

-67.68%

+18.79%

Max Drawdown (1Y)

Largest decline over 1 year

-13.31%

-11.17%

-2.14%

Max Drawdown (3Y)

Largest decline over 3 years

-19.71%

-17.37%

-2.34%

Max Drawdown (5Y)

Largest decline over 5 years

-27.07%

-30.88%

+3.81%

Max Drawdown (10Y)

Largest decline over 10 years

-48.89%

-36.39%

-12.50%

Current Drawdown

Current decline from peak

-11.48%

-4.07%

-7.41%

Average Drawdown

Average peak-to-trough decline

-10.46%

-15.73%

+5.27%

Ulcer Index

Depth and duration of drawdowns from previous peaks

4.11%

3.43%

+0.68%

Volatility

EEMS vs. VWO - Volatility Comparison

iShares MSCI Emerging Markets Small-Cap ETF (EEMS) has a higher volatility of 6.47% compared to Vanguard FTSE Emerging Markets ETF (VWO) at 5.58%. This indicates that EEMS'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

EEMSVWODifference

Volatility (1M)

Calculated over the trailing 1-month period

6.47%

5.58%

+0.89%

Volatility (6M)

Calculated over the trailing 6-month period

18.25%

15.22%

+3.03%

Volatility (1Y)

Calculated over the trailing 1-year period

19.85%

17.58%

+2.27%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

16.69%

17.56%

-0.87%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

18.17%

19.17%

-1.00%

EEMS vs. VWO - Expense Ratio Comparison

EEMS has a 0.73% expense ratio, which is higher than VWO's 0.08% expense ratio.

Dividends

EEMS vs. VWO - Dividend Comparison

EEMS's dividend yield for the trailing twelve months is around 3.07%, more than VWO's 2.35% yield.

PositionTTM20252024202320222021202020192018201720162015
EEMS
iShares MSCI Emerging Markets Small-Cap ETF		3.07%3.09%2.60%2.69%0.89%3.56%2.14%2.64%3.06%2.47%2.51%2.33%
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

EEMS and VWO have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

EEMS has higher volatility (6.47%) compared to VWO (5.58%). In terms of maximum drawdown, EEMS dropped -48.89% vs VWO's -67.68%.

On 10-year performance, VWO leads with 7.86% vs 7.78% for EEMS. 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, VWO has performed better with a 7.86% return vs 7.78%. 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 0.73% for EEMS.

EEMS has the higher dividend yield at 3.07%, compared with 2.35% for VWO.

EEMS tracks MSCI Emerging Markets Small Cap Index, while VWO tracks FTSE Emerging Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.73% for EEMS and 0.08% for VWO.

VWO currently has the higher Sharpe Ratio (1.20 vs 0.62), 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.

Portfolio Optimizer

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