EWO vs. EEM

Last updated Jun 3, 2026

EWO (iShares MSCI Austria ETF) and EEM (iShares MSCI Emerging Markets ETF) are both exchange-traded funds - EWO is a Europe Equities fund tracking the MSCI Austria Investable Market Index, while EEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index. Both are passively managed. Over the past 10 years, EWO returned 14.21%/yr vs 10.06%/yr for EEM. A 0.63 correlation means they provide meaningful diversification when combined. EWO charges 0.49%/yr vs 0.72%/yr for EEM.

Performance

EWO vs. EEM - Performance Comparison

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

Returns By Period

In the year-to-date period, EWO achieves a 16.61% return, which is significantly lower than EEM's 29.41% return. Over the past 10 years, EWO has outperformed EEM with an annualized return of 14.21%, while EEM has yielded a comparatively lower 10.06% annualized return.

EWO

• 1D: 1.05%
• 1M: 6.00%
• YTD: 16.61%
• 6M: 23.65%
• 1Y: 44.58%
• 3Y*: 33.99%
• 5Y*: 15.24%
• 10Y*: 14.21%

EEM

• 1D: 1.03%
• 1M: 10.40%
• YTD: 29.41%
• 6M: 32.25%
• 1Y: 58.14%
• 3Y*: 24.46%
• 5Y*: 7.47%
• 10Y*: 10.06%

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

EWO vs. EEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EWO iShares MSCI Austria ETF	16.61%	74.21%	4.05%	20.63%	-21.95%	31.50%	-3.67%	17.05%	-22.88%	52.47%
EEM iShares MSCI Emerging Markets ETF	29.41%	33.98%	6.49%	8.95%	-20.56%	-3.63%	17.02%	18.22%	-15.31%	37.26%

Correlation

The correlation between EWO and EEM is 0.56, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.56
Correlation (3Y) Calculated over the trailing 3-year period	0.60
Correlation (5Y) Calculated over the trailing 5-year period	0.64
Correlation (10Y) Calculated over the trailing 10-year period	0.62
Correlation (All Time) Calculated using the full available price history since Apr 15, 2003	0.63

The correlation between EWO and EEM has been stable across timeframes, ranging from 0.56 to 0.64 - a consistent structural relationship.

EWO vs. EEM - Sectors Allocation Comparison

Sectors	EWO	EEM
Financial Services	46.6%	17.5%
Industrials	14.2%	6.2%
Energy	10.8%	3.3%
Basic Materials	8.1%	6.1%
Utilities	7.5%	2.0%
Technology	6.6%	43.6%
Real Estate	4.4%	0.9%
Consumer Cyclical	1.9%	8.1%
Communication Services	-	5.7%
Consumer Defensive	-	2.7%
Healthcare	-	2.5%

Return for Risk

EWO vs. EEM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

EWO

EWO Risk / Return Rank: 68
EWO Sharpe Ratio Rank: 73
EWO Sortino Ratio Rank: 73
EWO Omega Ratio Rank: 67
EWO Calmar Ratio Rank: 65
EWO Martin Ratio Rank: 62

EEM

EEM Risk / Return Rank: 84
EEM Sharpe Ratio Rank: 87
EEM Sortino Ratio Rank: 83
EEM Omega Ratio Rank: 86
EEM Calmar Ratio Rank: 82
EEM Martin Ratio Rank: 83

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.

EWO vs. EEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Austria ETF (EWO) and iShares MSCI Emerging Markets ETF (EEM). 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.

	EWO	EEM	Difference
Sharpe ratio Return per unit of total volatility	2.43	2.93	-0.50
Sortino ratio Return per unit of downside risk	3.34	3.75	-0.41
Omega ratio Gain probability vs. loss probability	1.41	1.53	-0.12
Calmar ratio Return relative to maximum drawdown	3.32	4.39	-1.06
Martin ratio Return relative to average drawdown	11.30	16.94	-5.64
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EWO vs. EEM - Sharpe Ratio Comparison

The current EWO Sharpe Ratio is 2.43, which is comparable to the EEM Sharpe Ratio of 2.93. The chart below compares the historical Sharpe Ratios of EWO and EEM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	EWO	EEM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.43	2.93	-0.50
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.70	0.40	+0.30
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.62	0.49	+0.13
Sharpe Ratio (All Time) Calculated using the full available price history	0.28	0.38	-0.11

Drawdowns

EWO vs. EEM - Drawdown Comparison

The maximum EWO drawdown since its inception was -75.69%, which is greater than EEM's maximum drawdown of -66.43%. Use the drawdown chart below to compare losses from any high point for EWO and EEM.

Drawdown Indicators

	EWO	EEM	Difference
Max Drawdown Largest peak-to-trough decline	-75.69%	-66.43%	-9.26%
Max Drawdown (1Y) Largest decline over 1 year	-14.08%	-13.52%	-0.56%
Max Drawdown (3Y) Largest decline over 3 years	-16.75%	-17.29%	+0.54%
Max Drawdown (5Y) Largest decline over 5 years	-41.82%	-37.71%	-4.11%
Max Drawdown (10Y) Largest decline over 10 years	-58.10%	-39.82%	-18.28%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-28.13%	-16.02%	-12.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.14%	3.50%	+0.64%

Volatility

EWO vs. EEM - Volatility Comparison

The current volatility for iShares MSCI Austria ETF (EWO) is 6.61%, while iShares MSCI Emerging Markets ETF (EEM) has a volatility of 8.36%. This indicates that EWO experiences smaller price fluctuations and is considered to be less risky than EEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EWO	EEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.61%	8.36%	-1.75%
Volatility (6M) Calculated over the trailing 6-month period	14.95%	17.36%	-2.41%
Volatility (1Y) Calculated over the trailing 1-year period	18.47%	19.93%	-1.46%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.83%	18.91%	+2.92%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.86%	20.50%	+2.36%

EWO vs. EEM - Expense Ratio Comparison

EWO has a 0.49% expense ratio, which is lower than EEM's 0.72% expense ratio.

Dividends

EWO vs. EEM - Dividend Comparison

EWO's dividend yield for the trailing twelve months is around 2.04%, more than EEM's 1.72% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EEM iShares MSCI Emerging Markets ETF	1.72%	2.22%	2.43%	2.63%	2.50%	1.99%	1.45%	2.76%	2.24%	1.89%	1.89%	2.49%
EWO iShares MSCI Austria ETF	2.04%	2.38%	7.40%	5.66%	4.75%	2.42%	0.98%	3.11%	4.04%	2.03%	1.99%	1.51%

Frequently Asked Questions

Can I hold both EWO and EEM in my portfolio?

EWO and EEM have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EWO or EEM?

EEM has higher volatility (8.36%) compared to EWO (6.61%). In terms of maximum drawdown, EWO dropped -75.69% vs EEM's -66.43%.

Which ETF is better, EWO or EEM?

On 10-year performance, EWO leads with 14.21% vs 10.06% for EEM. On fees, EWO is cheaper at 0.49% per year. On volatility, EWO has been the lower-risk option at 6.61%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EWO or EEM?

Over the 10-year period, EWO has performed better with a 14.21% return vs 10.06%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EWO or EEM?

EWO is cheaper with a 0.49% expense ratio, compared with 0.72% for EEM.

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

EWO has the higher dividend yield at 2.04%, compared with 1.72% for EEM.

What is the main difference between EWO and EEM?

EWO is categorized as Europe Equities, while EEM is Emerging Markets Diversified. EWO tracks MSCI Austria Investable Market Index, while EEM tracks MSCI Emerging Markets Index. Their fees differ too: 0.49% for EWO and 0.72% for EEM.

Which has better risk-adjusted returns?

EEM currently has the higher Sharpe Ratio (2.93 vs 2.43), 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.