VWO vs. IEMG
Compare and contrast key facts about Vanguard FTSE Emerging Markets ETF (VWO) and iShares Core MSCI Emerging Markets ETF (IEMG).
VWO and IEMG 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. IEMG is a passively managed fund by iShares that tracks the performance of the MSCI Emerging Markets Investable Market Index. It was launched on Oct 18, 2012. Both VWO and IEMG 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 IEMG.
Key characteristics
| VWO | IEMG | |
|---|---|---|
| YTD Return | 10.63% | 7.27% |
| 1Y Return | 15.46% | 12.36% |
| 3Y Return (Ann) | -1.59% | -2.72% |
| 5Y Return (Ann) | 4.26% | 3.55% |
| 10Y Return (Ann) | 3.58% | 3.48% |
| Sharpe Ratio | 0.96 | 0.76 |
| Sortino Ratio | 1.44 | 1.15 |
| Omega Ratio | 1.18 | 1.14 |
| Calmar Ratio | 0.61 | 0.45 |
| Martin Ratio | 5.01 | 3.77 |
| Ulcer Index | 2.85% | 3.02% |
| Daily Std Dev | 14.79% | 15.04% |
| Max Drawdown | -67.68% | -38.72% |
| Current Drawdown | -10.94% | -15.04% |
Correlation
The correlation between VWO and IEMG is 0.99, 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. IEMG - Performance Comparison
In the year-to-date period, VWO achieves a 10.63% return, which is significantly higher than IEMG's 7.27% return. Both investments have delivered pretty close results over the past 10 years, with VWO having a 3.58% annualized return and IEMG not far behind at 3.48%. 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. IEMG - Expense Ratio Comparison
VWO has a 0.08% expense ratio, which is lower than IEMG's 0.14% 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%.
Risk-Adjusted Performance
VWO vs. IEMG - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets ETF (VWO) 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.
Dividends
VWO vs. IEMG - Dividend Comparison
VWO's dividend yield for the trailing twelve months is around 2.68%, less than IEMG's 2.77% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VWO Vanguard FTSE Emerging Markets ETF | 2.68% | 3.52% | 4.11% | 2.63% | 1.91% | 3.24% | 2.88% | 2.30% | 2.52% | 3.26% | 2.86% | 2.73% |
IEMG iShares Core MSCI Emerging Markets ETF | 2.77% | 2.89% | 2.70% | 3.06% | 1.87% | 3.15% | 2.76% | 2.34% | 2.28% | 2.52% | 2.30% | 1.76% |
Drawdowns
VWO vs. IEMG - Drawdown Comparison
The maximum VWO drawdown since its inception was -67.68%, which is greater than IEMG's maximum drawdown of -38.72%. Use the drawdown chart below to compare losses from any high point for VWO and IEMG. For additional features, visit the drawdowns tool.
Volatility
VWO vs. IEMG - Volatility Comparison
Vanguard FTSE Emerging Markets ETF (VWO) and iShares Core MSCI Emerging Markets ETF (IEMG) have volatilities of 4.61% and 4.55%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.