PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan
VWO vs. IEMG
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VWO vs. IEMG

Last updated Jun 12, 2026

VWO (Vanguard FTSE Emerging Markets ETF) and IEMG (iShares Core MSCI Emerging Markets ETF) are both exchange-traded funds - VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index, while IEMG is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Investable Market Index (USD) (Net). Both are passively managed. Over the past 10 years, VWO returned 8.88%/yr vs 10.32%/yr for IEMG. With a 0.98 correlation, they move nearly in lockstep. VWO charges 0.08%/yr vs 0.09%/yr for IEMG.

Performance

VWO vs. IEMG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Emerging Markets ETF (VWO) and iShares Core MSCI Emerging Markets ETF (IEMG). The values are adjusted to include any dividend payments, if applicable.

Loading charts...

Returns By Period

In the year-to-date period, VWO achieves a 9.93% return, which is significantly lower than IEMG's 22.09% return. Over the past 10 years, VWO has underperformed IEMG with an annualized return of 8.88%, while IEMG has yielded a comparatively higher 10.32% annualized return.

VWO

1D
2.39%
1M
-0.49%
YTD
9.93%
6M
10.69%
1Y
23.70%
3Y*
16.63%
5Y*
4.87%
10Y*
8.88%

IEMG

1D
4.39%
1M
2.01%
YTD
22.09%
6M
23.42%
1Y
41.78%
3Y*
21.45%
5Y*
7.02%
10Y*
10.32%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VWO vs. IEMG - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VWO
Vanguard FTSE Emerging Markets ETF		9.93%25.60%10.59%9.25%-17.98%1.26%15.17%20.75%-14.76%31.49%
IEMG
iShares Core MSCI Emerging Markets ETF		22.09%32.56%6.50%11.52%-19.98%-0.64%17.87%17.81%-14.92%37.38%

Correlation

The correlation between VWO and IEMG is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.96

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

0.98

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

0.98

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

0.99

Correlation (All Time)
Calculated using the full available price history since Oct 24, 2012

0.98

The correlation between VWO and IEMG has been stable across timeframes, ranging from 0.96 to 0.99 - a consistent structural relationship.

VWO vs. IEMG - Sectors Allocation Comparison

Sectors
VWO
IEMG

Technology

29.6%
35.0%

Financial Services

19.5%
18.4%

Consumer Cyclical

10.7%
9.5%

Industrials

8.0%
9.0%

Basic Materials

8.0%
6.9%

Communication Services

7.1%
6.4%

Energy

4.6%
3.8%

Healthcare

3.9%
3.7%

Consumer Defensive

3.7%
3.3%

Utilities

2.9%
2.2%

Real Estate

2.2%
1.7%

Technology

VWO
29.6%
IEMG
35.0%

Financial Services

VWO
19.5%
IEMG
18.4%

Consumer Cyclical

VWO
10.7%
IEMG
9.5%

Industrials

VWO
8.0%
IEMG
9.0%

Basic Materials

VWO
8.0%
IEMG
6.9%

Communication Services

VWO
7.1%
IEMG
6.4%

Energy

VWO
4.6%
IEMG
3.8%

Healthcare

VWO
3.9%
IEMG
3.7%

Consumer Defensive

VWO
3.7%
IEMG
3.3%

Utilities

VWO
2.9%
IEMG
2.2%

Real Estate

VWO
2.2%
IEMG
1.7%

Compare stocks, funds, or ETFs

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

Vanguard FTSE Emerging Markets ETF

iShares Core MSCI Emerging Markets ETF

Often compared with VWO:
VWO vs. VEAVWO vs. VXUSVWO vs. EEMVWO vs. VOOVWO vs. VTIVWO vs. VEMAXVWO vs. SPY
Often compared with IEMG:
IEMG vs. EEMIEMG vs. IEFAIEMG vs. EMXCIEMG vs. SCHEIEMG vs. IXUSIEMG vs. SPYIEMG vs. EEMV

Return for Risk

VWO vs. IEMG — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VWO
VWO Risk / Return Rank: 5252
Overall Rank
VWO Sharpe Ratio Rank: 5151
Sharpe Ratio Rank
VWO Sortino Ratio Rank: 4949
Sortino Ratio Rank
VWO Omega Ratio Rank: 5252
Omega Ratio Rank
VWO Calmar Ratio Rank: 5252
Calmar Ratio Rank
VWO Martin Ratio Rank: 5353
Martin Ratio Rank
IEMG
IEMG Risk / Return Rank: 7575
Overall Rank
IEMG Sharpe Ratio Rank: 7575
Sharpe Ratio Rank
IEMG Sortino Ratio Rank: 7070
Sortino Ratio Rank
IEMG Omega Ratio Rank: 7878
Omega Ratio Rank
IEMG Calmar Ratio Rank: 7575
Calmar Ratio Rank
IEMG 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.

VWO vs. IEMG - Risk-Adjusted Trends 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.

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.

VWOIEMGDifference
Sharpe ratioReturn per unit of total volatility
1.44
1.99

-0.55

Sortino ratioReturn per unit of downside risk
2.03
2.62

-0.58

Omega ratioGain probability vs. loss probability

1.27

1.38

-0.11

Calmar ratioReturn relative to maximum drawdown

2.13

3.18

-1.05

Martin ratioReturn relative to average drawdown

7.51

11.70

-4.19

VWO vs. IEMG - Sharpe Ratio Comparison

The current VWO Sharpe Ratio is 1.44, which is comparable to the IEMG Sharpe Ratio of 1.99. The chart below compares the historical Sharpe Ratios of VWO and IEMG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Loading charts...

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 -38.71%. Use the drawdown chart below to compare losses from any high point for VWO and IEMG.

Loading charts...

Drawdown Indicators

VWOIEMGDifference

Max Drawdown

Largest peak-to-trough decline

-67.68%

-38.71%

-28.97%

Max Drawdown (1Y)

Largest decline over 1 year

-11.17%

-13.21%

+2.04%

Max Drawdown (3Y)

Largest decline over 3 years

-17.37%

-17.21%

-0.16%

Max Drawdown (5Y)

Largest decline over 5 years

-32.60%

-35.75%

+3.15%

Max Drawdown (10Y)

Largest decline over 10 years

-36.39%

-38.71%

+2.32%

Current Drawdown

Current decline from peak

-3.42%

-4.56%

+1.14%

Average Drawdown

Average peak-to-trough decline

-15.81%

-12.96%

-2.85%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.16%

3.58%

-0.42%

Volatility

VWO vs. IEMG - Volatility Comparison

The current volatility for Vanguard FTSE Emerging Markets ETF (VWO) is 6.66%, while iShares Core MSCI Emerging Markets ETF (IEMG) has a volatility of 10.76%. This indicates that VWO experiences smaller price fluctuations and is considered to be less risky than IEMG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Loading charts...

Volatility by Period

VWOIEMGDifference

Volatility (1M)

Calculated over the trailing 1-month period

6.66%

10.76%

-4.10%

Volatility (6M)

Calculated over the trailing 6-month period

14.04%

18.90%

-4.86%

Volatility (1Y)

Calculated over the trailing 1-year period

16.53%

21.08%

-4.55%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.48%

18.73%

-1.25%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

19.23%

20.17%

-0.94%

VWO vs. IEMG - Expense Ratio Comparison

VWO has a 0.08% expense ratio, which is lower than IEMG's 0.09% 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%.

Dividends

VWO vs. IEMG - Dividend Comparison

VWO's dividend yield for the trailing twelve months is around 2.45%, more than IEMG's 2.25% yield.

PositionTTM20252024202320222021202020192018201720162015
IEMG
iShares Core MSCI Emerging Markets ETF		2.25%2.75%3.20%2.89%2.71%3.06%1.87%3.15%2.76%2.35%2.28%2.53%
VWO
Vanguard FTSE Emerging Markets ETF		2.45%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

With a correlation of 0.96, VWO and IEMG move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

IEMG has higher volatility (10.76%) compared to VWO (6.66%). In terms of maximum drawdown, VWO dropped -67.68% vs IEMG's -38.71%.

On 10-year performance, IEMG leads with 10.32% vs 8.88% for VWO. On fees, VWO is cheaper at 0.08% per year. On volatility, VWO has been the lower-risk option at 6.66%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, IEMG has performed better with a 10.32% return vs 8.88%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VWO is cheaper with a 0.08% expense ratio, compared with 0.09% for IEMG.

VWO has the higher dividend yield at 2.45%, compared with 2.25% for IEMG.

VWO is categorized as Emerging Markets Equities, while IEMG is Emerging Markets Diversified. VWO tracks FTSE Emerging Index, while IEMG tracks MSCI Emerging Markets Investable Market Index (USD) (Net). They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.08% for VWO and 0.09% for IEMG.

IEMG currently has the higher Sharpe Ratio (1.99 vs 1.44), 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

Find the right allocation for VWO and IEMG

Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.

Open Portfolio Optimizer