VV vs. EEM

Last updated Jun 24, 2026

VV (Vanguard Large-Cap ETF) and EEM (iShares MSCI Emerging Markets ETF) are both exchange-traded funds - VV is a Large Cap Blend Equities fund tracking the CRSP US Large 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, VV returned 15.62%/yr vs 9.87%/yr for EEM. A 0.75 correlation means they provide meaningful diversification when combined. VV charges 0.04%/yr vs 0.72%/yr for EEM.

Performance

VV vs. EEM - Performance Comparison

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

Returns By Period

In the year-to-date period, VV achieves a 7.90% return, which is significantly lower than EEM's 23.41% return. Over the past 10 years, VV has outperformed EEM with an annualized return of 15.62%, while EEM has yielded a comparatively lower 9.87% annualized return.

VV

• 1D: -1.44%
• 1M: -1.27%
• YTD: 7.90%
• 6M: 6.95%
• 1Y: 23.37%
• 3Y*: 21.00%
• 5Y*: 12.65%
• 10Y*: 15.62%

EEM

• 1D: -5.67%
• 1M: 2.49%
• YTD: 23.41%
• 6M: 24.32%
• 1Y: 46.62%
• 3Y*: 22.58%
• 5Y*: 6.54%
• 10Y*: 9.87%

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

VV vs. EEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VV Vanguard Large-Cap ETF	7.90%	18.11%	25.25%	27.18%	-19.91%	27.41%	21.04%	31.25%	-4.46%	22.00%
EEM iShares MSCI Emerging Markets ETF	23.41%	33.98%	6.49%	8.95%	-20.56%	-3.63%	17.02%	18.22%	-15.31%	37.26%

Correlation

The correlation between VV and EEM is 0.75, 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	0.75
Correlation (3Y) Calculated over the trailing 3-year period	0.67
Correlation (5Y) Calculated over the trailing 5-year period	0.66
Correlation (10Y) Calculated over the trailing 10-year period	0.68
Correlation (All Time) Calculated using the full available price history since Jan 30, 2004	0.75

The correlation between VV and EEM has been stable across timeframes, ranging from 0.66 to 0.75 - a consistent structural relationship.

VV vs. EEM - Sectors Allocation Comparison

Sectors	VV	EEM
Technology	35.9%	46.4%
Financial Services	11.8%	17.8%
Communication Services	11.2%	5.6%
Consumer Cyclical	9.8%	7.2%
Healthcare	8.6%	2.3%
Industrials	8.0%	5.9%
Consumer Defensive	4.8%	2.4%
Energy	3.6%	3.0%
Utilities	2.7%	1.8%
Real Estate	1.7%	0.9%
Basic Materials	1.6%	5.7%

Return for Risk

VV vs. EEM — Risk / Return Rank

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

VV

VV Risk / Return Rank: 57
VV Sharpe Ratio Rank: 57
VV Sortino Ratio Rank: 55
VV Omega Ratio Rank: 56
VV Calmar Ratio Rank: 54
VV Martin Ratio Rank: 65

EEM

EEM Risk / Return Rank: 67
EEM Sharpe Ratio Rank: 65
EEM Sortino Ratio Rank: 57
EEM Omega Ratio Rank: 69
EEM Calmar Ratio Rank: 71
EEM Martin Ratio Rank: 70

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.

VV vs. EEM - Risk-Adjusted Trends Comparison

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

	VV	EEM	Difference
Sharpe ratio: Return per unit of total volatility	1.86	2.06	-0.20
Sortino ratio: Return per unit of downside risk	2.54	2.63	-0.10
Omega ratio: Gain probability vs. loss probability	1.33	1.39	-0.06
Calmar ratio: Return relative to maximum drawdown	2.55	3.46	-0.92
Martin ratio: Return relative to average drawdown	11.23	12.70	-1.46

VV vs. EEM - Sharpe Ratio Comparison

The current VV Sharpe Ratio is 1.86, which is comparable to the EEM Sharpe Ratio of 2.06. The chart below compares the historical Sharpe Ratios of VV 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.

Drawdowns

VV vs. EEM - Drawdown Comparison

The maximum VV drawdown since its inception was -54.81%, smaller than the maximum EEM drawdown of -66.43%. Use the drawdown chart below to compare losses from any high point for VV and EEM.

Drawdown Indicators

	VV	EEM	Difference
Max Drawdown Largest peak-to-trough decline	-54.81%	-66.43%	+11.62%
Max Drawdown (1Y) Largest decline over 1 year	-9.21%	-13.52%	+4.31%
Max Drawdown (3Y) Largest decline over 3 years	-18.97%	-17.29%	-1.68%
Max Drawdown (5Y) Largest decline over 5 years	-25.66%	-37.49%	+11.83%
Max Drawdown (10Y) Largest decline over 10 years	-34.28%	-39.82%	+5.54%
Current Drawdown Current decline from peak	-3.21%	-5.67%	+2.46%
Average Drawdown Average peak-to-trough decline	-6.83%	-15.99%	+9.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.09%	3.68%	-1.59%

Volatility

VV vs. EEM - Volatility Comparison

The current volatility for Vanguard Large-Cap ETF (VV) is 4.94%, while iShares MSCI Emerging Markets ETF (EEM) has a volatility of 12.59%. This indicates that VV 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.

Volatility by Period

	VV	EEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.94%	12.59%	-7.65%
Volatility (6M) Calculated over the trailing 6-month period	9.93%	20.73%	-10.80%
Volatility (1Y) Calculated over the trailing 1-year period	12.66%	22.77%	-10.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.33%	19.55%	-2.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.21%	20.67%	-2.46%

VV vs. EEM - Expense Ratio Comparison

VV has a 0.04% expense ratio, which is lower than EEM's 0.72% expense ratio.

Dividends

VV vs. EEM - Dividend Comparison

VV's dividend yield for the trailing twelve months is around 1.00%, less than EEM's 1.66% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EEM iShares MSCI Emerging Markets ETF	1.66%	2.22%	2.43%	2.63%	2.50%	1.99%	1.45%	2.76%	2.24%	1.89%	1.89%	2.49%
VV Vanguard Large-Cap ETF	1.00%	1.08%	1.24%	1.41%	1.66%	1.19%	1.46%	1.81%	2.09%	1.75%	1.98%	1.96%

Frequently Asked Questions

Can I hold both VV and EEM in my portfolio?

VV and EEM have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VV or EEM?

EEM has higher volatility (12.59%) compared to VV (4.94%). In terms of maximum drawdown, VV dropped -54.81% vs EEM's -66.43%.

Which ETF is better, VV or EEM?

On 10-year performance, VV leads with 15.62% vs 9.87% for EEM. On fees, VV is cheaper at 0.04% per year. On volatility, VV has been the lower-risk option at 4.94%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VV or EEM?

Over the 10-year period, VV has performed better with a 15.62% return vs 9.87%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VV or EEM?

VV is cheaper with a 0.04% expense ratio, compared with 0.72% for EEM.

Which ETF pays a higher dividend yield, VV or EEM?

EEM has the higher dividend yield at 1.66%, compared with 1.00% for VV.

What is the main difference between VV and EEM?

VV is categorized as Large Cap Blend Equities, while EEM is Emerging Markets Diversified. VV tracks CRSP US Large Cap Index, while EEM tracks MSCI Emerging Markets Index (Net). They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.04% for VV and 0.72% for EEM.

Which has better risk-adjusted returns?

EEM currently has the higher Sharpe Ratio (2.06 vs 1.86), 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.