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VO vs. EEM
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VO vs. EEM

Last updated Jun 13, 2026

VO (Vanguard Mid-Cap ETF) and EEM (iShares MSCI Emerging Markets ETF) are both exchange-traded funds - VO is a Mid Cap Blend Equities fund tracking the CRSP US Mid Cap Index, while EEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index (Net). Both are passively managed. Over the past 10 years, VO returned 11.77%/yr vs 9.91%/yr for EEM. A 0.73 correlation means they provide meaningful diversification when combined. VO charges 0.03%/yr vs 0.72%/yr for EEM.

Performance

VO vs. EEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Mid-Cap ETF (VO) 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, VO achieves a 10.43% return, which is significantly lower than EEM's 24.07% return. Over the past 10 years, VO has outperformed EEM with an annualized return of 11.77%, while EEM has yielded a comparatively lower 9.91% annualized return.

VO

1D
0.97%
1M
3.61%
YTD
10.43%
6M
9.31%
1Y
18.17%
3Y*
15.74%
5Y*
7.79%
10Y*
11.77%

EEM

1D
0.56%
1M
1.00%
YTD
24.07%
6M
26.94%
1Y
45.22%
3Y*
21.60%
5Y*
6.56%
10Y*
9.91%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VO vs. EEM - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VO
Vanguard Mid-Cap ETF		10.43%11.62%15.31%16.03%-18.73%24.70%18.10%30.98%-9.24%19.28%
EEM
iShares MSCI Emerging Markets ETF		24.07%33.98%6.49%8.95%-20.56%-3.63%17.02%18.22%-15.31%37.26%

Correlation

The correlation between VO and EEM is 0.60, 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

0.60

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

0.60

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

0.63

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

0.66

Correlation (All Time)
Calculated using the full available price history since Jan 30, 2004

0.73

The correlation between VO and EEM shifts across timeframes, from 0.60 (3 years) to 0.73 (all time), reflecting how their relationship changes across market environments.

VO vs. EEM - Sectors Allocation Comparison

Sectors
VO
EEM

Technology

18.6%
43.6%

Industrials

17.9%
6.2%

Financial Services

12.8%
17.5%

Consumer Cyclical

8.6%
8.1%

Energy

8.5%
3.3%

Utilities

8.3%
2.0%

Healthcare

7.6%
2.5%

Real Estate

5.4%
0.9%

Consumer Defensive

4.8%
2.7%

Basic Materials

4.2%
6.1%

Communication Services

3.1%
5.7%

Technology

VO
18.6%
EEM
43.6%

Industrials

VO
17.9%
EEM
6.2%

Financial Services

VO
12.8%
EEM
17.5%

Consumer Cyclical

VO
8.6%
EEM
8.1%

Energy

VO
8.5%
EEM
3.3%

Utilities

VO
8.3%
EEM
2.0%

Healthcare

VO
7.6%
EEM
2.5%

Real Estate

VO
5.4%
EEM
0.9%

Consumer Defensive

VO
4.8%
EEM
2.7%

Basic Materials

VO
4.2%
EEM
6.1%

Communication Services

VO
3.1%
EEM
5.7%

Compare stocks, funds, or ETFs

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

Vanguard Mid-Cap ETF

iShares MSCI Emerging Markets ETF

Often compared with VO:
VO vs. VOOVO vs. VOTVO vs. IJHVO vs. VOEVO vs. VIMAXVO vs. VXFVO vs. SCHM
Often compared with EEM:
EEM vs. VWOEEM vs. SPYEEM vs. IEMGEEM vs. IS3N.DEEEM vs. VXUSEEM vs. EEMSEEM vs. SPEM

Return for Risk

VO vs. EEM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VO
VO Risk / Return Rank: 4949
Overall Rank
VO Sharpe Ratio Rank: 4747
Sharpe Ratio Rank
VO Sortino Ratio Rank: 4646
Sortino Ratio Rank
VO Omega Ratio Rank: 4444
Omega Ratio Rank
VO Calmar Ratio Rank: 5151
Calmar Ratio Rank
VO Martin Ratio Rank: 5555
Martin Ratio Rank
EEM
EEM Risk / Return Rank: 7575
Overall Rank
EEM Sharpe Ratio Rank: 7676
Sharpe Ratio Rank
EEM Sortino Ratio Rank: 7070
Sortino Ratio Rank
EEM Omega Ratio Rank: 7878
Omega Ratio Rank
EEM Calmar Ratio Rank: 7575
Calmar Ratio Rank
EEM Martin Ratio Rank: 7575
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.

VO vs. EEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Mid-Cap ETF (VO) 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.

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.

VOEEMDifference
Sharpe ratioReturn per unit of total volatility
1.43
2.10

-0.67

Sortino ratioReturn per unit of downside risk
2.05
2.73

-0.68

Omega ratioGain probability vs. loss probability

1.25

1.40

-0.14

Calmar ratioReturn relative to maximum drawdown

2.23

3.36

-1.13

Martin ratioReturn relative to average drawdown

8.44

12.38

-3.95

VO vs. EEM - Sharpe Ratio Comparison

The current VO Sharpe Ratio is 1.43, which is lower than the EEM Sharpe Ratio of 2.10. The chart below compares the historical Sharpe Ratios of VO 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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Drawdowns

VO vs. EEM - Drawdown Comparison

The maximum VO drawdown since its inception was -58.87%, smaller than the maximum EEM drawdown of -66.43%. Use the drawdown chart below to compare losses from any high point for VO and EEM.

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Drawdown Indicators

VOEEMDifference

Max Drawdown

Largest peak-to-trough decline

-58.87%

-66.43%

+7.56%

Max Drawdown (1Y)

Largest decline over 1 year

-8.17%

-13.52%

+5.35%

Max Drawdown (3Y)

Largest decline over 3 years

-19.02%

-17.29%

-1.73%

Max Drawdown (5Y)

Largest decline over 5 years

-27.57%

-37.49%

+9.92%

Max Drawdown (10Y)

Largest decline over 10 years

-39.37%

-39.82%

+0.45%

Current Drawdown

Current decline from peak

-0.45%

-4.12%

+3.67%

Average Drawdown

Average peak-to-trough decline

-7.85%

-16.00%

+8.15%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.16%

3.67%

-1.51%

Volatility

VO vs. EEM - Volatility Comparison

The current volatility for Vanguard Mid-Cap ETF (VO) is 4.31%, while iShares MSCI Emerging Markets ETF (EEM) has a volatility of 10.80%. This indicates that VO 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

VOEEMDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.31%

10.80%

-6.49%

Volatility (6M)

Calculated over the trailing 6-month period

9.71%

19.39%

-9.68%

Volatility (1Y)

Calculated over the trailing 1-year period

12.74%

21.64%

-8.90%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.65%

19.26%

-1.61%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

18.96%

20.64%

-1.68%

VO vs. EEM - Expense Ratio Comparison

VO has a 0.03% expense ratio, which is lower than EEM's 0.72% expense ratio.

Dividends

VO vs. EEM - Dividend Comparison

VO's dividend yield for the trailing twelve months is around 1.36%, less than EEM's 1.79% yield.

PositionTTM20252024202320222021202020192018201720162015
EEM
iShares MSCI Emerging Markets ETF		1.79%2.22%2.43%2.63%2.50%1.99%1.45%2.76%2.24%1.89%1.89%2.49%
VO
Vanguard Mid-Cap ETF		1.36%1.52%1.49%1.52%1.60%1.12%1.45%1.48%1.82%1.35%1.45%1.47%

Frequently Asked Questions

VO and EEM have a correlation of 0.60, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

EEM has higher volatility (10.80%) compared to VO (4.31%). In terms of maximum drawdown, VO dropped -58.87% vs EEM's -66.43%.

On 10-year performance, VO leads with 11.77% vs 9.91% for EEM. On fees, VO is cheaper at 0.03% per year. On volatility, VO has been the lower-risk option at 4.31%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VO has performed better with a 11.77% return vs 9.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VO is cheaper with a 0.03% expense ratio, compared with 0.72% for EEM.

EEM has the higher dividend yield at 1.79%, compared with 1.36% for VO.

VO is categorized as Mid Cap Blend Equities, while EEM is Emerging Markets Diversified. VO tracks CRSP US Mid Cap Index, while EEM tracks MSCI Emerging Markets Index (Net). They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for VO and 0.72% for EEM.

EEM currently has the higher Sharpe Ratio (2.10 vs 1.43), 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.

Portfolio Optimizer

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