EEM vs VWO
iShares MSCI Emerging Markets ETF vs Vanguard FTSE Emerging Markets ETF
Which is better, EEM or VWO?
Nearly the same fund. VWO costs less.
VWO has a lower expense ratio. EEM led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.98.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | EEM | VWO |
|---|---|---|
| Expense Ratio | 0.72% | 0.06%Best |
| AUM | $31.1B | $122.0B |
| Dividend Yield | 1.66% | 2.29% |
| Holdings | 1,224 | 6,334 |
| YTD Return | +23.50%Best | +11.36% |
| 1Y Return | +32.26%Best | +15.36% |
| 3Y Return (annualized) | +24.74%Best | +18.93% |
| 5Y Return (annualized) | +8.80%Best | +6.89% |
| Volatility (annualized) | 20.9% | 20.0%Best |
| Max Drawdown | -68.8% | -68.3%Best |
| $10,000 over 5 years | $15,246Best | $13,954 |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Apr 7, 2003 | Mar 4, 2005 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Mar 10, 2005 to Sep 22, 2026 (21.5 years).
EEM vs VWO growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 21.5 years both funds cover.
EEM vs VWO Performance
iShares MSCI Emerging Markets ETF (EEM) is an ETF from iShares by BlackRock (US) and Vanguard FTSE Emerging Markets ETF (VWO) is an ETF from Vanguard (US). Over the past year EEM returned +32.26% while VWO returned +15.36%. Year to date, EEM is up 23.50% versus a gain of 11.36% for VWO.
Over three years, EEM compounded at +24.74% per year against +18.93% for VWO; over five years the annualized figures are +8.80% and +6.89% respectively. Across the full 22-year window we track, EEM has the edge at +5.61% annualized vs +5.01%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EEM has been the more volatile fund, with annualized monthly volatility of 20.9% compared with 20.0% for VWO. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -68.8% for EEM and -68.3% for VWO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.98. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
EEM charges 0.72% per year while VWO charges 0.06%. On a $10,000 position that is $72 vs $6 annually, a gap of $66 per year that compounds over a long holding period. On income, EEM currently yields 1.66% against 2.29% for VWO.
Holdings Overlap
At least 51.9% of EEM's money is in holdings VWO also owns.
Stated as a floor: for VWO, our book for it covers 89.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
The two portfolios partly overlap.
676 positions in common, counted across the 1,114 positions we hold weights for in EEM and 4,688 in VWO, against full books of 1,224 and 6,334.
Top Shared Holdings
| Stock | Weight in EEM | Weight in VWO | Difference |
|---|---|---|---|
| 2330:TWTaiwan Semiconductor Manufacturing Co. Ltd. | 15.07% | 0.02% | 15.05% |
| 2454:TWMediatek, Inc. | 1.44% | 1.31% | 0.13% |
| 2308:TWDelta Electronics Inc | 0.91% | 0.79% | 0.12% |
| 2317:TWHon Hai Precision Industry Co | 0.78% | 0.78% | 0.00% |
| RELIANCE:MBReliance Industries Ltd | 0.62% | 0.77% | 0.15% |
| ICICIBANK:MBIcici Bank Ltd Ord Inr2 (demat) | 0.64% | 0.67% | 0.03% |
| 601398:SHIndustrial & Commercial Bank Of China Ltd | 0.51% | 0.64% | 0.13% |
| 3711:TWAse Technology Holding Co Lt | 0.50% | 0.47% | 0.03% |
| BHARTIARTL:MBBharti Airtel Ltd | 0.43% | 0.53% | 0.10% |
| 3690:SHMeituan Dianping | 0.41% | 0.54% | 0.13% |
51.9% of EEM is already inside VWO.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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Frequently Asked Questions
Which is cheaper, EEM or VWO?
EEM has an expense ratio of 0.72% while VWO charges 0.06%. VWO is the cheaper option, by $66 a year on a $10,000 investment.
Which performed better, EEM or VWO?
Over the past year EEM returned +32.26% vs +15.36% for VWO, so EEM leads on 1-year performance. Over the longest common window we track (22 years), EEM annualized +5.61% vs +5.01% for VWO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, EEM or VWO?
EEM has been the more volatile fund at 20.9% annualized versus 20.0% for VWO. Worst drawdown: EEM -68.8% vs VWO -68.3%.
Should I hold both EEM and VWO?
EEM and VWO have a monthly-return correlation of 0.98, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between EEM and VWO?
At least 51.9% of EEM's money is in holdings VWO also owns. Our book for VWO is partial, so the real figure is this or higher. They hold 676 positions in common, counted across the 1,114 positions we hold weights for in EEM and 4,688 in VWO.
Which pays a higher dividend, EEM or VWO?
EEM yields 1.66% while VWO yields 2.29%, so VWO currently pays the higher dividend yield.
Is VWO better than EEM?
VWO has a lower expense ratio. EEM led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.98. Which one suits a particular account depends on what it is for. This is information, not a recommendation.