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VMMSX vs. EEM
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VMMSX vs. EEM

Last updated Jun 4, 2026

VMMSX (Vanguard Emerging Markets Select Stock Fund) and EEM (iShares MSCI Emerging Markets ETF) are both funds - VMMSX is a Emerging Markets Equities fund managed by Vanguard, while EEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index. Over the past 10 years, VMMSX returned 10.72%/yr vs 9.93%/yr for EEM. Their correlation of 0.94 suggests significant overlap in exposure. VMMSX charges 0.84%/yr vs 0.72%/yr for EEM.

Performance

VMMSX vs. EEM - Performance Comparison

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

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Returns By Period

In the year-to-date period, VMMSX achieves a 20.95% return, which is significantly lower than EEM's 27.80% return. Over the past 10 years, VMMSX has outperformed EEM with an annualized return of 10.72%, while EEM has yielded a comparatively lower 9.93% annualized return.

VMMSX

1D
1.46%
1M
5.99%
YTD
20.95%
6M
22.99%
1Y
48.86%
3Y*
22.11%
5Y*
6.94%
10Y*
10.72%

EEM

1D
-1.24%
1M
9.08%
YTD
27.80%
6M
30.51%
1Y
55.80%
3Y*
23.95%
5Y*
7.01%
10Y*
9.93%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VMMSX vs. EEM - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VMMSX
Vanguard Emerging Markets Select Stock Fund		20.95%35.68%5.91%10.58%-18.15%-1.40%15.79%21.42%-12.53%32.01%
EEM
iShares MSCI Emerging Markets ETF		27.80%33.98%6.49%8.95%-20.56%-3.63%17.02%18.22%-15.31%37.26%

Correlation

The correlation between VMMSX and EEM is 0.94, 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

0.94

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

0.95

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

0.96

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

0.95

Correlation (All Time)
Calculated using the full available price history since Jun 28, 2011

0.94

The correlation between VMMSX and EEM has been stable across timeframes, ranging from 0.94 to 0.96 - a consistent structural relationship.

VMMSX vs. EEM - Sectors Allocation Comparison

Sectors
VMMSX
EEM

Technology

23.4%
43.6%

Financial Services

20.1%
17.5%

Consumer Cyclical

13.3%
8.1%

Industrials

7.2%
6.2%

Communication Services

6.6%
5.7%

Basic Materials

6.1%
6.1%

Energy

5.5%
3.3%

Consumer Defensive

5.2%
2.7%

Utilities

2.1%
2.0%

Real Estate

1.9%
0.9%

Healthcare

1.2%
2.5%

Technology

VMMSX
23.4%
EEM
43.6%

Financial Services

VMMSX
20.1%
EEM
17.5%

Consumer Cyclical

VMMSX
13.3%
EEM
8.1%

Industrials

VMMSX
7.2%
EEM
6.2%

Communication Services

VMMSX
6.6%
EEM
5.7%

Basic Materials

VMMSX
6.1%
EEM
6.1%

Energy

VMMSX
5.5%
EEM
3.3%

Consumer Defensive

VMMSX
5.2%
EEM
2.7%

Utilities

VMMSX
2.1%
EEM
2.0%

Real Estate

VMMSX
1.9%
EEM
0.9%

Healthcare

VMMSX
1.2%
EEM
2.5%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard Emerging Markets Select Stock Fund

iShares MSCI Emerging Markets ETF

Often compared with VMMSX:
VMMSX vs. VEMIXVMMSX vs. AVEMVMMSX vs. FEMKXVMMSX vs. VAIGXVMMSX vs. GSYVMMSX vs. VTSAXVMMSX vs. XEMD.DE
Often compared with EEM:
EEM vs. VWOEEM vs. SPYEEM vs. IEMGEEM vs. IS3N.DEEEM vs. VXUSEEM vs. EEMSEEM vs. SPEM

Return for Risk

VMMSX vs. EEM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VMMSX
VMMSX Risk / Return Rank: 8282
Overall Rank
VMMSX Sharpe Ratio Rank: 9090
Sharpe Ratio Rank
VMMSX Sortino Ratio Rank: 7979
Sortino Ratio Rank
VMMSX Omega Ratio Rank: 8383
Omega Ratio Rank
VMMSX Calmar Ratio Rank: 8080
Calmar Ratio Rank
VMMSX Martin Ratio Rank: 7777
Martin Ratio Rank
EEM
EEM Risk / Return Rank: 8181
Overall Rank
EEM Sharpe Ratio Rank: 8484
Sharpe Ratio Rank
EEM Sortino Ratio Rank: 7979
Sortino Ratio Rank
EEM Omega Ratio Rank: 8383
Omega Ratio Rank
EEM Calmar Ratio Rank: 7979
Calmar Ratio Rank
EEM Martin Ratio Rank: 8080
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.

VMMSX vs. EEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Emerging Markets Select Stock Fund (VMMSX) 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.

VMMSXEEMDifference
Sharpe ratioReturn per unit of total volatility
2.96
2.81

+0.15

Sortino ratioReturn per unit of downside risk
3.76
3.62

+0.15

Omega ratioGain probability vs. loss probability

1.55

1.51

+0.04

Calmar ratioReturn relative to maximum drawdown

3.66

4.15

-0.49

Martin ratioReturn relative to average drawdown

14.53

15.99

-1.45

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

VMMSX vs. EEM - Sharpe Ratio Comparison

The current VMMSX Sharpe Ratio is 2.96, which is comparable to the EEM Sharpe Ratio of 2.81. The chart below compares the historical Sharpe Ratios of VMMSX 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.

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Sharpe Ratios by Period

VMMSXEEMDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.96

2.81

+0.15

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.39

0.37

+0.02

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.59

0.49

+0.10

Sharpe Ratio (All Time)

Calculated using the full available price history

0.33

0.38

-0.05

Drawdowns

VMMSX vs. EEM - Drawdown Comparison

The maximum VMMSX drawdown since its inception was -39.28%, smaller than the maximum EEM drawdown of -66.43%. Use the drawdown chart below to compare losses from any high point for VMMSX and EEM.

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Drawdown Indicators

VMMSXEEMDifference

Max Drawdown

Largest peak-to-trough decline

-39.28%

-66.43%

+27.15%

Max Drawdown (1Y)

Largest decline over 1 year

-13.46%

-13.52%

+0.06%

Max Drawdown (3Y)

Largest decline over 3 years

-18.37%

-17.29%

-1.08%

Max Drawdown (5Y)

Largest decline over 5 years

-37.39%

-37.71%

+0.32%

Max Drawdown (10Y)

Largest decline over 10 years

-38.82%

-39.82%

+1.00%

Current Drawdown

Current decline from peak

0.00%

-1.24%

+1.24%

Average Drawdown

Average peak-to-trough decline

-13.41%

-16.02%

+2.61%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.38%

3.50%

-0.12%

Volatility

VMMSX vs. EEM - Volatility Comparison

The current volatility for Vanguard Emerging Markets Select Stock Fund (VMMSX) is 6.08%, while iShares MSCI Emerging Markets ETF (EEM) has a volatility of 8.52%. This indicates that VMMSX 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.

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Volatility by Period

VMMSXEEMDifference

Volatility (1M)

Calculated over the trailing 1-month period

6.08%

8.52%

-2.44%

Volatility (6M)

Calculated over the trailing 6-month period

13.89%

17.42%

-3.53%

Volatility (1Y)

Calculated over the trailing 1-year period

16.63%

19.97%

-3.34%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.78%

18.91%

-1.13%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

18.38%

20.50%

-2.12%

VMMSX vs. EEM - Expense Ratio Comparison

VMMSX has a 0.84% expense ratio, which is higher than EEM's 0.72% expense ratio.

Dividends

VMMSX vs. EEM - Dividend Comparison

VMMSX's dividend yield for the trailing twelve months is around 1.92%, more than EEM's 1.74% yield.

PositionTTM20252024202320222021202020192018201720162015
EEM
iShares MSCI Emerging Markets ETF		1.74%2.22%2.43%2.63%2.50%1.99%1.45%2.76%2.24%1.89%1.89%2.49%
VMMSX
Vanguard Emerging Markets Select Stock Fund		1.92%2.32%3.33%3.05%3.71%6.80%1.04%2.04%2.53%1.54%1.44%1.87%

Frequently Asked Questions

With a correlation of 0.94, VMMSX and EEM 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.

EEM has higher volatility (8.52%) compared to VMMSX (6.08%). In terms of maximum drawdown, VMMSX dropped -39.28% vs EEM's -66.43%.

VMMSX currently has the higher Sharpe Ratio (2.96 vs 2.81), 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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