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VWO vs. IYH
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VWO vs. IYH

Last updated Jun 16, 2026

VWO (Vanguard FTSE Emerging Markets ETF) and IYH (iShares U.S. Healthcare ETF) are both exchange-traded funds - VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index, while IYH is a Health & Biotech Equities fund tracking the Dow Jones U.S. Health Care Index. Both are passively managed. Over the past 10 years, VWO returned 9.11%/yr vs 9.63%/yr for IYH. A 0.53 correlation means they provide meaningful diversification when combined. VWO charges 0.08%/yr vs 0.43%/yr for IYH.

Performance

VWO vs. IYH - Performance Comparison

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

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Returns By Period

In the year-to-date period, VWO achieves a 13.17% return, which is significantly higher than IYH's -1.10% return. Over the past 10 years, VWO has underperformed IYH with an annualized return of 9.11%, while IYH has yielded a comparatively higher 9.63% annualized return.

VWO

1D
2.17%
1M
4.11%
YTD
13.17%
6M
15.35%
1Y
29.26%
3Y*
16.84%
5Y*
5.83%
10Y*
9.11%

IYH

1D
-0.46%
1M
5.37%
YTD
-1.10%
6M
-1.60%
1Y
14.30%
3Y*
6.09%
5Y*
4.89%
10Y*
9.63%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VWO vs. IYH - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VWO
Vanguard FTSE Emerging Markets ETF		13.17%25.60%10.59%9.25%-17.98%1.26%15.17%20.75%-14.76%31.49%
IYH
iShares U.S. Healthcare ETF		-1.10%13.16%2.99%2.14%-4.46%23.41%15.56%20.80%5.80%22.27%

Correlation

The correlation between VWO and IYH is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.

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

0.27

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

0.29

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

0.36

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

0.44

Correlation (All Time)
Calculated using the full available price history since Mar 10, 2005

0.53

Over the past year, the correlation between VWO and IYH has dropped to 0.27 - well below their long-term average of 0.53, suggesting their price drivers have been diverging.

VWO vs. IYH - Sectors Allocation Comparison

Sectors
VWO
IYH

Technology

29.6%

-

Financial Services

19.5%

-

Consumer Cyclical

10.7%

-

Industrials

8.0%

-

Basic Materials

8.0%

-

Communication Services

7.1%

-

Energy

4.6%

-

Healthcare

3.9%
100.0%

Consumer Defensive

3.7%

-

Utilities

2.9%

-

Real Estate

2.2%

-

Technology

VWO
29.6%
IYH

-

Financial Services

VWO
19.5%
IYH

-

Consumer Cyclical

VWO
10.7%
IYH

-

Industrials

VWO
8.0%
IYH

-

Basic Materials

VWO
8.0%
IYH

-

Communication Services

VWO
7.1%
IYH

-

Energy

VWO
4.6%
IYH

-

Healthcare

VWO
3.9%
IYH
100.0%

Consumer Defensive

VWO
3.7%
IYH

-

Utilities

VWO
2.9%
IYH

-

Real Estate

VWO
2.2%
IYH

-

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 U.S. Healthcare ETF

Often compared with VWO:
VWO vs. VEAVWO vs. IEMGVWO vs. VXUSVWO vs. EEMVWO vs. VOOVWO vs. VTIVWO vs. VEMAX
Often compared with IYH:
IYH vs. VHTIYH vs. XLVIYH vs. SPYIYH vs. IYEIYH vs. IFRAIYH vs. BMEDIYH vs. IBB

Return for Risk

VWO vs. IYH — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VWO
VWO Risk / Return Rank: 5858
Overall Rank
VWO Sharpe Ratio Rank: 5858
Sharpe Ratio Rank
VWO Sortino Ratio Rank: 5757
Sortino Ratio Rank
VWO Omega Ratio Rank: 6060
Omega Ratio Rank
VWO Calmar Ratio Rank: 5959
Calmar Ratio Rank
VWO Martin Ratio Rank: 5858
Martin Ratio Rank
IYH
IYH Risk / Return Rank: 2929
Overall Rank
IYH Sharpe Ratio Rank: 2929
Sharpe Ratio Rank
IYH Sortino Ratio Rank: 3030
Sortino Ratio Rank
IYH Omega Ratio Rank: 2727
Omega Ratio Rank
IYH Calmar Ratio Rank: 3030
Calmar Ratio Rank
IYH Martin Ratio Rank: 2626
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. IYH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets ETF (VWO) and iShares U.S. Healthcare ETF (IYH). 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.

VWOIYHDifference
Sharpe ratioReturn per unit of total volatility
1.77
0.95

+0.82

Sortino ratioReturn per unit of downside risk
2.45
1.53

+0.92

Omega ratioGain probability vs. loss probability

1.33

1.17

+0.16

Calmar ratioReturn relative to maximum drawdown

2.63

1.35

+1.28

Martin ratioReturn relative to average drawdown

9.28

3.21

+6.06

VWO vs. IYH - Sharpe Ratio Comparison

The current VWO Sharpe Ratio is 1.77, which is higher than the IYH Sharpe Ratio of 0.95. The chart below compares the historical Sharpe Ratios of VWO and IYH, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

VWO vs. IYH - Drawdown Comparison

The maximum VWO drawdown since its inception was -67.68%, which is greater than IYH's maximum drawdown of -43.12%. Use the drawdown chart below to compare losses from any high point for VWO and IYH.

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Drawdown Indicators

VWOIYHDifference

Max Drawdown

Largest peak-to-trough decline

-67.68%

-43.12%

-24.56%

Max Drawdown (1Y)

Largest decline over 1 year

-11.17%

-10.64%

-0.53%

Max Drawdown (3Y)

Largest decline over 3 years

-17.37%

-17.91%

+0.54%

Max Drawdown (5Y)

Largest decline over 5 years

-32.60%

-17.91%

-14.69%

Max Drawdown (10Y)

Largest decline over 10 years

-36.39%

-28.40%

-7.99%

Current Drawdown

Current decline from peak

-0.57%

-4.38%

+3.81%

Average Drawdown

Average peak-to-trough decline

-15.80%

-8.96%

-6.84%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.16%

4.46%

-1.30%

Volatility

VWO vs. IYH - Volatility Comparison

Vanguard FTSE Emerging Markets ETF (VWO) has a higher volatility of 6.98% compared to iShares U.S. Healthcare ETF (IYH) at 4.97%. This indicates that VWO's price experiences larger fluctuations and is considered to be riskier than IYH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VWOIYHDifference

Volatility (1M)

Calculated over the trailing 1-month period

6.98%

4.97%

+2.01%

Volatility (6M)

Calculated over the trailing 6-month period

14.18%

10.61%

+3.57%

Volatility (1Y)

Calculated over the trailing 1-year period

16.62%

15.11%

+1.51%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.51%

14.97%

+2.54%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

19.24%

16.75%

+2.49%

VWO vs. IYH - Expense Ratio Comparison

VWO has a 0.08% expense ratio, which is lower than IYH's 0.43% expense ratio.

Dividends

VWO vs. IYH - Dividend Comparison

VWO's dividend yield for the trailing twelve months is around 2.38%, more than IYH's 1.51% yield.

PositionTTM20252024202320222021202020192018201720162015
IYH
iShares U.S. Healthcare ETF		1.51%1.19%1.25%1.18%1.10%0.94%1.16%1.14%1.95%1.10%1.29%2.02%
VWO
Vanguard FTSE Emerging Markets ETF		2.38%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

VWO and IYH have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VWO has higher volatility (6.98%) compared to IYH (4.97%). In terms of maximum drawdown, VWO dropped -67.68% vs IYH's -43.12%.

On 10-year performance, IYH leads with 9.63% vs 9.11% for VWO. On fees, VWO is cheaper at 0.08% per year. On volatility, IYH has been the lower-risk option at 4.97%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, IYH has performed better with a 9.63% return vs 9.11%. 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 0.43% for IYH.

VWO has the higher dividend yield at 2.38%, compared with 1.51% for IYH.

VWO is categorized as Emerging Markets Equities, while IYH is Health & Biotech Equities. VWO tracks FTSE Emerging Index, while IYH tracks Dow Jones U.S. Health Care Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.08% for VWO and 0.43% for IYH.

VWO currently has the higher Sharpe Ratio (1.77 vs 0.95), 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.

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