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HEEM vs. VWO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

HEEM vs. VWO

Last updated Aug 2, 2026
Documentation

HEEM (iShares Currency Hedged MSCI Emerging Markets ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both Emerging Markets Equities funds - HEEM tracks the MSCI Emerging Markets 100% USD Hedged Index while VWO tracks the FTSE Emerging Index. Both are passively managed. Over the past 10 years, HEEM returned 9.86%/yr vs 7.86%/yr for VWO. Their correlation of 0.93 means they have usually moved in the same direction. HEEM charges 0.72%/yr vs 0.08%/yr for VWO.

Performance

HEEM vs. VWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) 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, HEEM achieves a 18.23% return, which is significantly higher than VWO's 9.41% return. Over the past 10 years, HEEM has outperformed VWO with an annualized return of 9.86%, while VWO has yielded a comparatively lower 7.86% annualized return.

HEEM

1D
0.85%
1M
-4.02%
6M
9.21%
YTD
18.23%
1Y
40.11%
3Y*
20.86%
5Y*
9.65%
10Y*
9.86%
ALL TIME*
7.84%

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)

HEEM

iShares Currency Hedged MSCI Emerging Markets ETF
$10.32M$12.63M$6.04M

VWO

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

HEEM vs. VWO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
HEEM
iShares Currency Hedged MSCI Emerging Markets ETF		18.23%34.02%12.59%10.14%-16.85%-1.82%17.94%18.53%-11.09%27.59%
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 HEEM and VWO is 0.91, 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.

0.91

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

0.92

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

0.94

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

0.94

Correlation (All Time)
Calculated using the full available price history since Sep 25, 2014

0.93

The correlation between HEEM and VWO has been stable across timeframes, ranging from 0.91 to 0.94 - a consistent structural relationship.

HEEM vs. VWO - Sectors Allocation Comparison

Sectors
HEEM
VWO

Technology

45.2%
34.2%

Financial Services

18.5%
19.4%

Consumer Cyclical

7.5%
9.1%

Industrials

6.3%
7.9%

Communication Services

6.0%
6.6%

Basic Materials

5.5%
7.2%

Energy

3.2%
3.8%

Consumer Defensive

2.6%
3.3%

Healthcare

2.5%
3.7%

Utilities

1.8%
2.8%

Real Estate

1.0%
2.0%

Technology

HEEM
45.2%
VWO
34.2%

Financial Services

HEEM
18.5%
VWO
19.4%

Consumer Cyclical

HEEM
7.5%
VWO
9.1%

Industrials

HEEM
6.3%
VWO
7.9%

Communication Services

HEEM
6.0%
VWO
6.6%

Basic Materials

HEEM
5.5%
VWO
7.2%

Energy

HEEM
3.2%
VWO
3.8%

Consumer Defensive

HEEM
2.6%
VWO
3.3%

Healthcare

HEEM
2.5%
VWO
3.7%

Utilities

HEEM
1.8%
VWO
2.8%

Real Estate

HEEM
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 Currency Hedged MSCI Emerging Markets ETF

Vanguard FTSE Emerging Markets ETF

Often compared with HEEM:
HEEM vs. HEWJHEEM vs. IEMS.LHEEM vs. IEMGHEEM vs. AVEMHEEM vs. EDIVHEEM vs. VYMIHEEM vs. SPEM
Often compared with VWO:
VWO vs. VEAVWO vs. IEMGVWO vs. VXUSVWO vs. EEMVWO vs. VOOVWO vs. VTIVWO vs. VEMAX

Return for Risk

HEEM vs. VWO — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.
HEEM
HEEM Risk / Return Rank: 7575
Overall Rank
HEEM Sharpe Ratio Rank: 7676
Sharpe Ratio Rank
HEEM Sortino Ratio Rank: 7171
Sortino Ratio Rank
HEEM Omega Ratio Rank: 7878
Omega Ratio Rank
HEEM Calmar Ratio Rank: 7575
Calmar Ratio Rank
HEEM Martin Ratio Rank: 7676
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.

HEEM vs. VWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) 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.

HEEMVWODifference
Sharpe ratioReturn per unit of total volatility
1.72
1.20

+0.52

Sortino ratioReturn per unit of downside risk
2.29
1.72

+0.57

Omega ratioGain probability vs. loss probability

1.33

1.22

+0.10

Calmar ratioReturn relative to maximum drawdown

2.60

1.89

+0.70

Martin ratioReturn relative to average drawdown

9.49

6.16

+3.32

HEEM vs. VWO - Sharpe Ratio Comparison

The current HEEM Sharpe Ratio is 1.72, which is higher than the VWO Sharpe Ratio of 1.20. The chart below compares the historical Sharpe Ratios of HEEM 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

HEEM vs. VWO - Drawdown Comparison

The maximum HEEM drawdown since its inception was -33.53%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for HEEM and VWO.

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Drawdown Indicators

HEEMVWODifference

Max Drawdown

Largest peak-to-trough decline

-33.53%

-67.68%

+34.15%

Max Drawdown (1Y)

Largest decline over 1 year

-15.01%

-11.17%

-3.84%

Max Drawdown (3Y)

Largest decline over 3 years

-15.01%

-17.37%

+2.36%

Max Drawdown (5Y)

Largest decline over 5 years

-28.15%

-30.88%

+2.73%

Max Drawdown (10Y)

Largest decline over 10 years

-33.53%

-36.39%

+2.86%

Current Drawdown

Current decline from peak

-11.28%

-4.07%

-7.21%

Average Drawdown

Average peak-to-trough decline

-11.08%

-15.73%

+4.65%

Ulcer Index

Depth and duration of drawdowns from previous peaks

4.10%

3.43%

+0.67%

Volatility

HEEM vs. VWO - Volatility Comparison

iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) has a higher volatility of 9.41% compared to Vanguard FTSE Emerging Markets ETF (VWO) at 5.58%. This indicates that HEEM'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

HEEMVWODifference

Volatility (1M)

Calculated over the trailing 1-month period

9.41%

5.58%

+3.83%

Volatility (6M)

Calculated over the trailing 6-month period

20.67%

15.22%

+5.45%

Volatility (1Y)

Calculated over the trailing 1-year period

22.65%

17.58%

+5.07%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

18.03%

17.56%

+0.47%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

18.40%

19.17%

-0.77%

HEEM vs. VWO - Expense Ratio Comparison

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

Dividends

HEEM vs. VWO - Dividend Comparison

HEEM's dividend yield for the trailing twelve months is around 3.25%, more than VWO's 2.35% yield.

PositionTTM20252024202320222021202020192018201720162015
HEEM
iShares Currency Hedged MSCI Emerging Markets ETF		3.25%3.98%2.38%2.75%7.49%1.93%1.49%3.04%2.37%2.05%1.84%6.28%
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 0.91, HEEM 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.

HEEM has higher volatility (9.41%) compared to VWO (5.58%). In terms of maximum drawdown, HEEM dropped -33.53% vs VWO's -67.68%.

On 10-year performance, HEEM leads with 9.86% 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, HEEM has performed better with a 9.86% 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 HEEM.

HEEM has the higher dividend yield at 3.25%, compared with 2.35% for VWO.

HEEM tracks MSCI Emerging Markets 100% USD Hedged Index, while VWO tracks FTSE Emerging Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.72% for HEEM and 0.08% for VWO.

HEEM currently has the higher Sharpe Ratio (1.72 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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