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VT vs. EEM
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VT vs. EEM

Last updated Jun 13, 2026

VT (Vanguard Total World Stock ETF) and EEM (iShares MSCI Emerging Markets ETF) are both exchange-traded funds - VT is a Global Equities fund tracking the FTSE Global All 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, VT returned 12.93%/yr vs 9.91%/yr for EEM. Their correlation of 0.84 suggests significant overlap in exposure. VT charges 0.06%/yr vs 0.72%/yr for EEM.

Performance

VT vs. EEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total World Stock ETF (VT) 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, VT achieves a 11.06% return, which is significantly lower than EEM's 24.07% return. Over the past 10 years, VT has outperformed EEM with an annualized return of 12.93%, while EEM has yielded a comparatively lower 9.91% annualized return.

VT

1D
0.44%
1M
0.17%
YTD
11.06%
6M
11.82%
1Y
27.43%
3Y*
19.71%
5Y*
10.65%
10Y*
12.93%

EEM

1D
0.56%
1M
0.74%
YTD
24.07%
6M
26.94%
1Y
47.57%
3Y*
21.60%
5Y*
6.56%
10Y*
9.91%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VT vs. EEM - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VT
Vanguard Total World Stock ETF		11.06%22.43%16.49%22.02%-18.00%18.27%16.59%26.81%-9.76%24.50%
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 VT and EEM is 0.85, 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

0.85

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

0.79

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

0.78

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

0.80

Correlation (All Time)
Calculated using the full available price history since Jun 26, 2008

0.84

The correlation between VT and EEM has been stable across timeframes, ranging from 0.78 to 0.85 - a consistent structural relationship.

VT vs. EEM - Sectors Allocation Comparison

Sectors
VT
EEM

Technology

27.8%
43.6%

Financial Services

15.9%
17.5%

Industrials

12.0%
6.2%

Consumer Cyclical

9.5%
8.1%

Communication Services

8.3%
5.7%

Healthcare

8.1%
2.5%

Consumer Defensive

4.8%
2.7%

Energy

4.3%
3.3%

Basic Materials

4.2%
6.1%

Utilities

2.7%
2.0%

Real Estate

2.4%
0.9%

Technology

VT
27.8%
EEM
43.6%

Financial Services

VT
15.9%
EEM
17.5%

Industrials

VT
12.0%
EEM
6.2%

Consumer Cyclical

VT
9.5%
EEM
8.1%

Communication Services

VT
8.3%
EEM
5.7%

Healthcare

VT
8.1%
EEM
2.5%

Consumer Defensive

VT
4.8%
EEM
2.7%

Energy

VT
4.3%
EEM
3.3%

Basic Materials

VT
4.2%
EEM
6.1%

Utilities

VT
2.7%
EEM
2.0%

Real Estate

VT
2.4%
EEM
0.9%

Compare stocks, funds, or ETFs

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

Vanguard Total World Stock ETF

iShares MSCI Emerging Markets ETF

Often compared with VT:
VT vs. VOOVT vs. VTIVT vs. VXUSVT vs. SPYVT vs. ACWIVT vs. VWRA.LVT vs. VWCE.DE
Often compared with EEM:
EEM vs. VWOEEM vs. SPYEEM vs. IEMGEEM vs. IS3N.DEEEM vs. VXUSEEM vs. EEMSEEM vs. SPEM

Return for Risk

VT vs. EEM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VT
VT Risk / Return Rank: 6868
Overall Rank
VT Sharpe Ratio Rank: 6969
Sharpe Ratio Rank
VT Sortino Ratio Rank: 6868
Sortino Ratio Rank
VT Omega Ratio Rank: 6969
Omega Ratio Rank
VT Calmar Ratio Rank: 6262
Calmar Ratio Rank
VT Martin Ratio Rank: 7272
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.

VT vs. EEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total World Stock ETF (VT) 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.

VTEEMDifference
Sharpe ratioReturn per unit of total volatility
1.94
2.10

-0.16

Sortino ratioReturn per unit of downside risk
2.67
2.73

-0.06

Omega ratioGain probability vs. loss probability

1.35

1.40

-0.04

Calmar ratioReturn relative to maximum drawdown

2.68

3.36

-0.68

Martin ratioReturn relative to average drawdown

11.67

12.38

-0.72

VT vs. EEM - Sharpe Ratio Comparison

The current VT Sharpe Ratio is 1.94, which is comparable to the EEM Sharpe Ratio of 2.10. The chart below compares the historical Sharpe Ratios of VT 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

VT vs. EEM - Drawdown Comparison

The maximum VT drawdown since its inception was -50.27%, smaller than the maximum EEM drawdown of -66.43%. Use the drawdown chart below to compare losses from any high point for VT and EEM.

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Drawdown Indicators

VTEEMDifference

Max Drawdown

Largest peak-to-trough decline

-50.27%

-66.43%

+16.16%

Max Drawdown (1Y)

Largest decline over 1 year

-9.67%

-13.52%

+3.85%

Max Drawdown (3Y)

Largest decline over 3 years

-16.51%

-17.29%

+0.78%

Max Drawdown (5Y)

Largest decline over 5 years

-26.38%

-37.49%

+11.11%

Max Drawdown (10Y)

Largest decline over 10 years

-34.24%

-39.82%

+5.58%

Current Drawdown

Current decline from peak

-1.92%

-4.12%

+2.20%

Average Drawdown

Average peak-to-trough decline

-7.01%

-16.00%

+8.99%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.22%

3.67%

-1.45%

Volatility

VT vs. EEM - Volatility Comparison

The current volatility for Vanguard Total World Stock ETF (VT) is 5.26%, while iShares MSCI Emerging Markets ETF (EEM) has a volatility of 10.80%. This indicates that VT 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

VTEEMDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.26%

10.80%

-5.54%

Volatility (6M)

Calculated over the trailing 6-month period

11.01%

19.39%

-8.38%

Volatility (1Y)

Calculated over the trailing 1-year period

13.38%

21.64%

-8.26%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

16.15%

19.26%

-3.11%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

17.27%

20.64%

-3.37%

VT vs. EEM - Expense Ratio Comparison

VT has a 0.06% expense ratio, which is lower than EEM's 0.72% expense ratio.

Dividends

VT vs. EEM - Dividend Comparison

VT's dividend yield for the trailing twelve months is around 1.61%, 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%
VT
Vanguard Total World Stock ETF		1.61%1.82%1.95%2.08%2.20%1.82%1.66%2.32%2.53%2.11%2.39%2.45%

Frequently Asked Questions

VT and EEM have a correlation of 0.85, 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 VT (5.26%). In terms of maximum drawdown, VT dropped -50.27% vs EEM's -66.43%.

On 10-year performance, VT leads with 12.93% vs 9.91% for EEM. On fees, VT is cheaper at 0.06% per year. On volatility, VT has been the lower-risk option at 5.26%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VT has performed better with a 12.93% return vs 9.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VT is cheaper with a 0.06% expense ratio, compared with 0.72% for EEM.

EEM has the higher dividend yield at 1.79%, compared with 1.61% for VT.

VT is categorized as Global Equities, while EEM is Emerging Markets Diversified. VT tracks FTSE Global All Cap Index, while EEM tracks MSCI Emerging Markets Index (Net). They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.06% for VT and 0.72% for EEM.

EEM currently has the higher Sharpe Ratio (2.10 vs 1.94), 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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