VWO vs. EEM
Compare and contrast key facts about Vanguard FTSE Emerging Markets ETF (VWO) and iShares MSCI Emerging Markets ETF (EEM).
VWO and EEM are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VWO is a passively managed fund by Vanguard that tracks the performance of the FTSE Emerging Index. It was launched on Mar 4, 2005. EEM is a passively managed fund by iShares that tracks the performance of the MSCI Emerging Markets Index. It was launched on Apr 11, 2003. Both VWO and EEM are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VWO or EEM.
Key characteristics
| VWO | EEM | |
|---|---|---|
| YTD Return | 1.58% | 0.99% |
| 1Y Return | 10.23% | 9.20% |
| 3Y Return (Ann) | -4.71% | -7.31% |
| 5Y Return (Ann) | 2.33% | 0.74% |
| 10Y Return (Ann) | 3.24% | 2.16% |
| Sharpe Ratio | 0.60 | 0.48 |
| Daily Std Dev | 13.83% | 14.76% |
| Max Drawdown | -67.68% | -66.44% |
| Current Drawdown | -18.23% | -24.91% |
Correlation
The correlation between VWO and EEM is 0.97, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VWO vs. EEM - Performance Comparison
In the year-to-date period, VWO achieves a 1.58% return, which is significantly higher than EEM's 0.99% return. Over the past 10 years, VWO has outperformed EEM with an annualized return of 3.24%, while EEM has yielded a comparatively lower 2.16% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VWO vs. EEM - Expense Ratio Comparison
VWO has a 0.08% expense ratio, which is lower than EEM's 0.68% expense ratio.
Risk-Adjusted Performance
VWO vs. EEM - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets ETF (VWO) 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.
Dividends
VWO vs. EEM - Dividend Comparison
VWO's dividend yield for the trailing twelve months is around 3.49%, more than EEM's 2.61% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VWO Vanguard FTSE Emerging Markets ETF | 3.49% | 3.52% | 4.11% | 2.63% | 1.91% | 3.23% | 2.88% | 2.30% | 2.52% | 3.26% | 2.86% | 2.73% |
EEM iShares MSCI Emerging Markets ETF | 2.61% | 2.63% | 2.50% | 1.99% | 1.45% | 2.76% | 2.22% | 1.87% | 1.88% | 2.48% | 2.22% | 2.04% |
Drawdowns
VWO vs. EEM - Drawdown Comparison
The maximum VWO drawdown since its inception was -67.68%, roughly equal to the maximum EEM drawdown of -66.44%. Use the drawdown chart below to compare losses from any high point for VWO and EEM. For additional features, visit the drawdowns tool.
Volatility
VWO vs. EEM - Volatility Comparison
The current volatility for Vanguard FTSE Emerging Markets ETF (VWO) is 3.34%, while iShares MSCI Emerging Markets ETF (EEM) has a volatility of 3.75%. This indicates that VWO 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.