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IEEM.L vs. VFEM.L
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IEEM.L vs. VFEM.L

Last updated Jun 5, 2026

IEEM.L (iShares MSCI EM UCITS ETF (Dist)) and VFEM.L (Vanguard FTSE Emerging Markets UCITS ETF Distributing) are both Emerging Markets Equities funds tracking the MSCI EM NR USD, from iShares and Vanguard respectively. Both are passively managed. Over the past 10 years, IEEM.L returned 11.54%/yr vs 11.67%/yr for VFEM.L. With a 0.96 correlation, they move nearly in lockstep. IEEM.L charges 0.18%/yr vs 0.22%/yr for VFEM.L.

Performance

IEEM.L vs. VFEM.L - Performance Comparison

The chart below illustrates the hypothetical performance of a £10,000 investment in iShares MSCI EM UCITS ETF (Dist) (IEEM.L) and Vanguard FTSE Emerging Markets UCITS ETF Distributing (VFEM.L). The values are adjusted to include any dividend payments, if applicable.

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Different Trading Currencies

IEEM.L is traded in GBp, while VFEM.L is traded in GBP. To make them comparable, the VFEM.L values have been converted to GBp using the latest available exchange rates.

Returns By Period

In the year-to-date period, IEEM.L achieves a 25.90% return, which is significantly higher than VFEM.L's 11.78% return. Both investments have delivered pretty close results over the past 10 years, with IEEM.L having a 11.54% annualized return and VFEM.L not far ahead at 11.67%.

IEEM.L

1D
-1.34%
1M
3.99%
YTD
25.90%
6M
26.73%
1Y
54.02%
3Y*
21.65%
5Y*
9.24%
10Y*
11.54%

VFEM.L

1D
-0.13%
1M
2.65%
YTD
11.78%
6M
12.41%
1Y
30.99%
3Y*
16.84%
5Y*
8.88%
10Y*
11.67%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IEEM.L vs. VFEM.L - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IEEM.L
iShares MSCI EM UCITS ETF (Dist)		25.90%26.66%9.88%3.86%-9.90%-1.38%15.96%12.64%-9.08%25.04%
VFEM.L
Vanguard FTSE Emerging Markets UCITS ETF Distributing		11.78%16.90%15.28%5.45%-3.23%3.99%15.04%16.30%-6.83%20.89%

Correlation

The correlation between IEEM.L and VFEM.L is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

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

0.93

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

0.93

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

0.95

Correlation (10Y)
Calculated over the trailing 10-year period

0.97

Correlation (All Time)
Calculated using the full available price history since May 24, 2012

0.96

The correlation between IEEM.L and VFEM.L has been stable across timeframes, ranging from 0.93 to 0.97 - a consistent structural relationship.

IEEM.L vs. VFEM.L - Sectors Allocation Comparison

Sectors
IEEM.L
VFEM.L

Technology

36.8%
29.6%

Financial Services

19.5%
20.8%

Consumer Cyclical

9.5%
10.8%

Industrials

7.5%
7.1%

Communication Services

6.9%
7.5%

Basic Materials

6.5%
7.8%

Energy

4.1%
4.9%

Consumer Defensive

3.0%
3.6%

Healthcare

2.9%
3.4%

Utilities

2.1%
3.0%

Real Estate

1.1%
1.7%

Technology

IEEM.L
36.8%
VFEM.L
29.6%

Financial Services

IEEM.L
19.5%
VFEM.L
20.8%

Consumer Cyclical

IEEM.L
9.5%
VFEM.L
10.8%

Industrials

IEEM.L
7.5%
VFEM.L
7.1%

Communication Services

IEEM.L
6.9%
VFEM.L
7.5%

Basic Materials

IEEM.L
6.5%
VFEM.L
7.8%

Energy

IEEM.L
4.1%
VFEM.L
4.9%

Consumer Defensive

IEEM.L
3.0%
VFEM.L
3.6%

Healthcare

IEEM.L
2.9%
VFEM.L
3.4%

Utilities

IEEM.L
2.1%
VFEM.L
3.0%

Real Estate

IEEM.L
1.1%
VFEM.L
1.7%

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iShares MSCI EM UCITS ETF (Dist)

Vanguard FTSE Emerging Markets UCITS ETF Distributing

Often compared with IEEM.L:
IEEM.L vs. EIMI.LIEEM.L vs. VFEM.DEIEEM.L vs. HMEF.LIEEM.L vs. ISP6.LIEEM.L vs. 36B5.DEIEEM.L vs. VFEG.LIEEM.L vs. VOO
Often compared with VFEM.L:
VFEM.L vs. VWRP.LVFEM.L vs. EEMAVFEM.L vs. VUSA.LVFEM.L vs. VOOVFEM.L vs. VUKE.LVFEM.L vs. LGGG.LVFEM.L vs. VUAG.L

Return for Risk

IEEM.L vs. VFEM.L — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IEEM.L
IEEM.L Risk / Return Rank: 8989
Overall Rank
IEEM.L Sharpe Ratio Rank: 9292
Sharpe Ratio Rank
IEEM.L Sortino Ratio Rank: 9090
Sortino Ratio Rank
IEEM.L Omega Ratio Rank: 9191
Omega Ratio Rank
IEEM.L Calmar Ratio Rank: 8787
Calmar Ratio Rank
IEEM.L Martin Ratio Rank: 8585
Martin Ratio Rank
VFEM.L
VFEM.L Risk / Return Rank: 6868
Overall Rank
VFEM.L Sharpe Ratio Rank: 6969
Sharpe Ratio Rank
VFEM.L Sortino Ratio Rank: 6666
Sortino Ratio Rank
VFEM.L Omega Ratio Rank: 6868
Omega Ratio Rank
VFEM.L Calmar Ratio Rank: 7070
Calmar Ratio Rank
VFEM.L Martin Ratio Rank: 6464
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.

IEEM.L vs. VFEM.L - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI EM UCITS ETF (Dist) (IEEM.L) and Vanguard FTSE Emerging Markets UCITS ETF Distributing (VFEM.L). 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.

IEEM.LVFEM.LDifference
Sharpe ratioReturn per unit of total volatility
3.23
2.23

+1.00

Sortino ratioReturn per unit of downside risk
4.13
3.00

+1.13

Omega ratioGain probability vs. loss probability

1.60

1.40

+0.20

Calmar ratioReturn relative to maximum drawdown

4.93

3.46

+1.48

Martin ratioReturn relative to average drawdown

17.58

11.41

+6.17

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IEEM.L vs. VFEM.L - Sharpe Ratio Comparison

The current IEEM.L Sharpe Ratio is 3.23, which is higher than the VFEM.L Sharpe Ratio of 2.23. The chart below compares the historical Sharpe Ratios of IEEM.L and VFEM.L, 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

IEEM.LVFEM.LDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

3.23

2.23

+1.00

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.57

0.57

-0.01

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.64

0.67

-0.03

Sharpe Ratio (All Time)

Calculated using the full available price history

0.41

0.54

-0.13

Drawdowns

IEEM.L vs. VFEM.L - Drawdown Comparison

The maximum IEEM.L drawdown since its inception was -53.22%, which is greater than VFEM.L's maximum drawdown of -31.32%. Use the drawdown chart below to compare losses from any high point for IEEM.L and VFEM.L.

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Drawdown Indicators

IEEM.LVFEM.LDifference

Max Drawdown

Largest peak-to-trough decline

-53.22%

-31.32%

-21.90%

Max Drawdown (1Y)

Largest decline over 1 year

-11.12%

-8.92%

-2.20%

Max Drawdown (3Y)

Largest decline over 3 years

-15.47%

-14.68%

-0.79%

Max Drawdown (5Y)

Largest decline over 5 years

-23.27%

-15.28%

-7.99%

Max Drawdown (10Y)

Largest decline over 10 years

-26.63%

-25.91%

-0.72%

Current Drawdown

Current decline from peak

-2.43%

-1.46%

-0.97%

Average Drawdown

Average peak-to-trough decline

-10.41%

-6.87%

-3.54%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.13%

2.71%

+0.42%

Volatility

IEEM.L vs. VFEM.L - Volatility Comparison

iShares MSCI EM UCITS ETF (Dist) (IEEM.L) has a higher volatility of 7.42% compared to Vanguard FTSE Emerging Markets UCITS ETF Distributing (VFEM.L) at 5.23%. This indicates that IEEM.L's price experiences larger fluctuations and is considered to be riskier than VFEM.L based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

IEEM.LVFEM.LDifference

Volatility (1M)

Calculated over the trailing 1-month period

7.42%

5.23%

+2.19%

Volatility (6M)

Calculated over the trailing 6-month period

14.55%

11.12%

+3.43%

Volatility (1Y)

Calculated over the trailing 1-year period

17.03%

13.85%

+3.18%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

16.32%

15.47%

+0.85%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

18.11%

17.50%

+0.61%

IEEM.L vs. VFEM.L - Expense Ratio Comparison

IEEM.L has a 0.18% expense ratio, which is lower than VFEM.L's 0.22% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

IEEM.L vs. VFEM.L - Dividend Comparison

IEEM.L's dividend yield for the trailing twelve months is around 2.01%, less than VFEM.L's 2.04% yield.

PositionTTM20252024202320222021202020192018201720162015
IEEM.L
iShares MSCI EM UCITS ETF (Dist)		2.01%2.48%2.86%2.91%3.40%2.74%1.98%2.32%2.51%1.86%2.09%3.38%
VFEM.L
Vanguard FTSE Emerging Markets UCITS ETF Distributing		2.04%2.36%2.93%6.58%7.88%6.20%4.92%3.39%3.61%2.98%2.96%4.36%

Frequently Asked Questions

With a correlation of 0.93, IEEM.L and VFEM.L 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.

On fees, IEEM.L is cheaper at 0.18% per year. The better choice depends on whether you care most about return, fees, risk, or income.

IEEM.L is cheaper with a 0.18% expense ratio, compared with 0.22% for VFEM.L.

Both ETFs track MSCI EM NR USD. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.18% for IEEM.L and 0.22% for VFEM.L.

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