VWO vs. EEMO

Last updated Jun 4, 2026

VWO (Vanguard FTSE Emerging Markets ETF) and EEMO (Invesco S&P Emerging Markets Momentum ETF) are both exchange-traded funds - VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index, while EEMO is a Momentum fund tracking the S&P Momentum Emerging Plus LargeMidCap Index. Both are passively managed. Over the past 10 years, VWO returned 8.85%/yr vs 8.88%/yr for EEMO. A 0.69 correlation means they provide meaningful diversification when combined. VWO charges 0.08%/yr vs 0.31%/yr for EEMO.

Performance

VWO vs. EEMO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Emerging Markets ETF (VWO) and Invesco S&P Emerging Markets Momentum ETF (EEMO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VWO achieves a 12.22% return, which is significantly lower than EEMO's 40.25% return. Both investments have delivered pretty close results over the past 10 years, with VWO having a 8.85% annualized return and EEMO not far ahead at 8.88%.

VWO

• 1D: -1.41%
• 1M: 2.72%
• YTD: 12.22%
• 6M: 13.79%
• 1Y: 30.72%
• 3Y*: 18.02%
• 5Y*: 5.17%
• 10Y*: 8.85%

EEMO

• 1D: -1.32%
• 1M: 18.59%
• YTD: 40.25%
• 6M: 41.33%
• 1Y: 57.41%
• 3Y*: 25.30%
• 5Y*: 7.19%
• 10Y*: 8.88%

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

VWO vs. EEMO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VWO Vanguard FTSE Emerging Markets ETF	12.22%	25.60%	10.59%	9.25%	-17.98%	1.26%	15.17%	20.75%	-14.76%	31.49%
EEMO Invesco S&P Emerging Markets Momentum ETF	40.25%	10.99%	9.88%	13.90%	-18.73%	-5.57%	9.66%	21.17%	-17.24%	49.65%

Correlation

The correlation between VWO and EEMO 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	0.80
Correlation (5Y) Calculated over the trailing 5-year period	0.82
Correlation (10Y) Calculated over the trailing 10-year period	0.80
Correlation (All Time) Calculated using the full available price history since Feb 27, 2012	0.69

The correlation between VWO and EEMO shifts across timeframes, from 0.69 (all time) to 0.85 (1 year), reflecting how their relationship changes across market environments.

VWO vs. EEMO - Sectors Allocation Comparison

Sectors	VWO	EEMO
Technology	29.6%	43.8%
Financial Services	19.5%	18.0%
Consumer Cyclical	10.7%	3.2%
Industrials	8.0%	11.5%
Basic Materials	8.0%	12.9%
Communication Services	7.1%	1.5%
Energy	4.6%	2.5%
Healthcare	3.9%	3.0%
Consumer Defensive	3.7%	1.2%
Utilities	2.9%	2.0%
Real Estate	2.2%	0.5%

Return for Risk

VWO vs. EEMO — Risk / Return Rank

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

VWO

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

EEMO

EEMO Risk / Return Rank: 75
EEMO Sharpe Ratio Rank: 71
EEMO Sortino Ratio Rank: 72
EEMO Omega Ratio Rank: 77
EEMO Calmar Ratio Rank: 77
EEMO Martin Ratio Rank: 79

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.

VWO vs. EEMO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets ETF (VWO) and Invesco S&P Emerging Markets Momentum ETF (EEMO). 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.

	VWO	EEMO	Difference
Sharpe ratio: Return per unit of total volatility	1.94	2.36	-0.42
Sortino ratio: Return per unit of downside risk	2.69	3.28	-0.59
Omega ratio: Gain probability vs. loss probability	1.36	1.46	-0.11
Calmar ratio: Return relative to maximum drawdown	2.76	3.91	-1.15
Martin ratio: Return relative to average drawdown	9.96	15.67	-5.71
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VWO vs. EEMO - Sharpe Ratio Comparison

The current VWO Sharpe Ratio is 1.94, which is comparable to the EEMO Sharpe Ratio of 2.36. The chart below compares the historical Sharpe Ratios of VWO and EEMO, 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

	VWO	EEMO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.94	2.36	-0.42
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.30	0.37	-0.07
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.46	0.41	+0.05
Sharpe Ratio (All Time) Calculated using the full available price history	0.27	0.13	+0.14

Drawdowns

VWO vs. EEMO - Drawdown Comparison

The maximum VWO drawdown since its inception was -67.68%, which is greater than EEMO's maximum drawdown of -48.47%. Use the drawdown chart below to compare losses from any high point for VWO and EEMO.

Drawdown Indicators

	VWO	EEMO	Difference
Max Drawdown Largest peak-to-trough decline	-67.68%	-48.47%	-19.21%
Max Drawdown (1Y) Largest decline over 1 year	-11.17%	-14.75%	+3.58%
Max Drawdown (3Y) Largest decline over 3 years	-17.37%	-26.06%	+8.69%
Max Drawdown (5Y) Largest decline over 5 years	-32.64%	-34.03%	+1.39%
Max Drawdown (10Y) Largest decline over 10 years	-36.39%	-46.57%	+10.18%
Current Drawdown Current decline from peak	-1.41%	-1.32%	-0.09%
Average Drawdown Average peak-to-trough decline	-15.82%	-20.17%	+4.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.09%	3.67%	-0.58%

Volatility

VWO vs. EEMO - Volatility Comparison

The current volatility for Vanguard FTSE Emerging Markets ETF (VWO) is 5.61%, while Invesco S&P Emerging Markets Momentum ETF (EEMO) has a volatility of 14.32%. This indicates that VWO experiences smaller price fluctuations and is considered to be less risky than EEMO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VWO	EEMO	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.61%	14.32%	-8.71%
Volatility (6M) Calculated over the trailing 6-month period	13.22%	22.10%	-8.88%
Volatility (1Y) Calculated over the trailing 1-year period	15.89%	24.45%	-8.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.37%	19.33%	-1.96%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.20%	21.59%	-2.39%

VWO vs. EEMO - Expense Ratio Comparison

VWO has a 0.08% expense ratio, which is lower than EEMO's 0.31% expense ratio.

Dividends

VWO vs. EEMO - Dividend Comparison

VWO's dividend yield for the trailing twelve months is around 2.40%, more than EEMO's 1.64% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EEMO Invesco S&P Emerging Markets Momentum ETF	1.64%	2.31%	2.57%	3.65%	3.82%	1.51%	1.53%	2.13%	13.10%	5.13%	1.55%	2.92%
VWO Vanguard FTSE Emerging Markets ETF	2.40%	2.79%	3.20%	3.52%	4.11%	2.63%	1.91%	3.23%	2.88%	2.30%	2.52%	3.26%

Frequently Asked Questions

Can I hold both VWO and EEMO in my portfolio?

VWO and EEMO 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.

Which is riskier, VWO or EEMO?

EEMO has higher volatility (14.32%) compared to VWO (5.61%). In terms of maximum drawdown, VWO dropped -67.68% vs EEMO's -48.47%.

Which ETF is better, VWO or EEMO?

On 10-year performance, EEMO leads with 8.88% vs 8.85% for VWO. On fees, VWO is cheaper at 0.08% per year. On volatility, VWO has been the lower-risk option at 5.61%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VWO or EEMO?

Over the 10-year period, EEMO has performed better with a 8.88% return vs 8.85%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VWO or EEMO?

VWO is cheaper with a 0.08% expense ratio, compared with 0.31% for EEMO.

Which ETF pays a higher dividend yield, VWO or EEMO?

VWO has the higher dividend yield at 2.40%, compared with 1.64% for EEMO.

What is the main difference between VWO and EEMO?

VWO is categorized as Emerging Markets Equities, while EEMO is Momentum. VWO tracks FTSE Emerging Index, while EEMO tracks S&P Momentum Emerging Plus LargeMidCap Index. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.08% for VWO and 0.31% for EEMO.

Which has better risk-adjusted returns?

EEMO currently has the higher Sharpe Ratio (2.36 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.