VO vs. IEMG

Last updated Jun 9, 2026

VO (Vanguard Mid-Cap ETF) and IEMG (iShares Core 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 IEMG is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Investable Market Index (USD) (Net). Both are passively managed. Over the past 10 years, VO returned 11.44%/yr vs 9.88%/yr for IEMG. A 0.67 correlation means they provide meaningful diversification when combined. VO charges 0.03%/yr vs 0.09%/yr for IEMG.

Performance

VO vs. IEMG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Mid-Cap ETF (VO) and iShares Core MSCI Emerging Markets ETF (IEMG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VO achieves a 8.60% return, which is significantly lower than IEMG's 18.97% return. Over the past 10 years, VO has outperformed IEMG with an annualized return of 11.44%, while IEMG has yielded a comparatively lower 9.88% annualized return.

VO

• 1D: -0.04%
• 1M: 1.75%
• YTD: 8.60%
• 6M: 8.43%
• 1Y: 16.32%
• 3Y*: 15.78%
• 5Y*: 7.59%
• 10Y*: 11.44%

IEMG

• 1D: 1.70%
• 1M: -3.66%
• YTD: 18.97%
• 6M: 20.80%
• 1Y: 40.80%
• 3Y*: 20.51%
• 5Y*: 6.57%
• 10Y*: 9.88%

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

VO vs. IEMG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VO Vanguard Mid-Cap ETF	8.60%	11.62%	15.31%	16.03%	-18.73%	24.70%	18.10%	30.98%	-9.24%	19.28%
IEMG iShares Core MSCI Emerging Markets ETF	18.97%	32.56%	6.50%	11.52%	-19.98%	-0.64%	17.87%	17.81%	-14.92%	37.38%

Correlation

The correlation between VO and IEMG is 0.59, 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	0.59
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 Oct 25, 2012	0.67

The correlation between VO and IEMG has been stable across timeframes, ranging from 0.59 to 0.67 - a consistent structural relationship.

VO vs. IEMG - Sectors Allocation Comparison

Sectors	VO	IEMG
Technology	18.6%	35.0%
Industrials	17.9%	9.0%
Financial Services	12.8%	18.4%
Consumer Cyclical	8.6%	9.5%
Energy	8.5%	3.8%
Utilities	8.3%	2.2%
Healthcare	7.6%	3.7%
Real Estate	5.4%	1.7%
Consumer Defensive	4.8%	3.3%
Basic Materials	4.2%	6.9%
Communication Services	3.1%	6.4%

Return for Risk

VO vs. IEMG — Risk / Return Rank

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

VO

VO Risk / Return Rank: 43
VO Sharpe Ratio Rank: 41
VO Sortino Ratio Rank: 41
VO Omega Ratio Rank: 38
VO Calmar Ratio Rank: 45
VO Martin Ratio Rank: 50

IEMG

IEMG Risk / Return Rank: 67
IEMG Sharpe Ratio Rank: 67
IEMG Sortino Ratio Rank: 61
IEMG Omega Ratio Rank: 71
IEMG Calmar Ratio Rank: 68
IEMG Martin Ratio Rank: 69

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. IEMG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Mid-Cap ETF (VO) and iShares Core MSCI Emerging Markets ETF (IEMG). 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.

	VO	IEMG	Difference
Sharpe ratio: Return per unit of total volatility	1.31	1.99	-0.68
Sortino ratio: Return per unit of downside risk	1.89	2.58	-0.69
Omega ratio: Gain probability vs. loss probability	1.23	1.38	-0.15
Calmar ratio: Return relative to maximum drawdown	2.01	3.10	-1.10
Martin ratio: Return relative to average drawdown	7.62	11.68	-4.07
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VO vs. IEMG - Sharpe Ratio Comparison

The current VO Sharpe Ratio is 1.31, which is lower than the IEMG Sharpe Ratio of 1.99. The chart below compares the historical Sharpe Ratios of VO and IEMG, 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

	VO	IEMG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.31	1.99	-0.68
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.43	0.35	+0.08
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.61	0.49	+0.11
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.33	+0.17

Drawdowns

VO vs. IEMG - Drawdown Comparison

The maximum VO drawdown since its inception was -58.87%, which is greater than IEMG's maximum drawdown of -38.71%. Use the drawdown chart below to compare losses from any high point for VO and IEMG.

Drawdown Indicators

	VO	IEMG	Difference
Max Drawdown Largest peak-to-trough decline	-58.87%	-38.71%	-20.16%
Max Drawdown (1Y) Largest decline over 1 year	-8.17%	-13.21%	+5.04%
Max Drawdown (3Y) Largest decline over 3 years	-19.02%	-17.21%	-1.81%
Max Drawdown (5Y) Largest decline over 5 years	-27.57%	-35.75%	+8.18%
Max Drawdown (10Y) Largest decline over 10 years	-39.37%	-38.71%	-0.66%
Current Drawdown Current decline from peak	-2.10%	-7.00%	+4.90%
Average Drawdown Average peak-to-trough decline	-7.86%	-12.97%	+5.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.15%	3.50%	-1.35%

Volatility

VO vs. IEMG - Volatility Comparison

The current volatility for Vanguard Mid-Cap ETF (VO) is 3.51%, while iShares Core MSCI Emerging Markets ETF (IEMG) has a volatility of 10.33%. This indicates that VO experiences smaller price fluctuations and is considered to be less risky than IEMG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VO	IEMG	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.51%	10.33%	-6.82%
Volatility (6M) Calculated over the trailing 6-month period	9.46%	18.35%	-8.89%
Volatility (1Y) Calculated over the trailing 1-year period	12.51%	20.62%	-8.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.62%	18.62%	-1.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.96%	20.14%	-1.18%

VO vs. IEMG - Expense Ratio Comparison

VO has a 0.03% expense ratio, which is lower than IEMG's 0.09% 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

VO vs. IEMG - Dividend Comparison

VO's dividend yield for the trailing twelve months is around 1.38%, less than IEMG's 2.31% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IEMG iShares Core MSCI Emerging Markets ETF	2.31%	2.75%	3.20%	2.89%	2.71%	3.06%	1.87%	3.15%	2.76%	2.35%	2.28%	2.53%
VO Vanguard Mid-Cap ETF	1.38%	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

Can I hold both VO and IEMG in my portfolio?

VO and IEMG have a correlation of 0.59, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VO or IEMG?

IEMG has higher volatility (10.33%) compared to VO (3.51%). In terms of maximum drawdown, VO dropped -58.87% vs IEMG's -38.71%.

Which ETF is better, VO or IEMG?

On 10-year performance, VO leads with 11.44% vs 9.88% for IEMG. On fees, VO is cheaper at 0.03% per year. On volatility, VO has been the lower-risk option at 3.51%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VO or IEMG?

Over the 10-year period, VO has performed better with a 11.44% return vs 9.88%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VO or IEMG?

VO is cheaper with a 0.03% expense ratio, compared with 0.09% for IEMG.

Which ETF pays a higher dividend yield, VO or IEMG?

IEMG has the higher dividend yield at 2.31%, compared with 1.38% for VO.

What is the main difference between VO and IEMG?

VO is categorized as Mid Cap Blend Equities, while IEMG is Emerging Markets Diversified. VO tracks CRSP US Mid Cap Index, while IEMG tracks MSCI Emerging Markets Investable Market Index (USD) (Net). They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for VO and 0.09% for IEMG.

Which has better risk-adjusted returns?

IEMG currently has the higher Sharpe Ratio (1.99 vs 1.31), 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.