EEM vs VWO
iShares MSCI Emerging Markets ETF vs Vanguard FTSE Emerging Markets ETF
Quick Verdict
VWO has a lower expense ratio. EEM delivered stronger 1-year returns. VWO offers more diversification with 6,334 holdings.
Side-by-Side Comparison
| Metric | EEM | VWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.72% | 0.06% | |
| AUM | $31.2B | $122.0B | |
| Dividend Yield | 1.77% | 2.39% | |
| Holdings | 1,224 | 6,334 | |
| YTD Return | +19.34% | +10.60% | |
| 1Y Return | +36.65% | +21.00% | |
| 3Y Return (annualized) | +22.27% | +17.78% | |
| 5Y Return (annualized) | +7.19% | +6.05% | |
| Volatility (annualized) | 20.7% | 20.0% | |
| Max Drawdown | -68.8% | -68.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 7, 2003 | Mar 4, 2005 |
EEM vs VWO Performance
iShares MSCI Emerging Markets ETF (EEM) is a ETF from iShares by BlackRock (US) and Vanguard FTSE Emerging Markets ETF (VWO) is a ETF from Vanguard (US). Over the past year EEM returned +36.65% while VWO returned +21.00%. Year to date, EEM is up 19.34% versus a gain of 10.60% for VWO.
Over three years, EEM compounded at +22.27% per year against +17.78% for VWO; over five years the annualized figures are +7.19% and +6.05% respectively. Across the full 22-year window we track, EEM has the edge at +8.55% annualized vs +4.99%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EEM has been the more volatile fund, with annualized monthly volatility of 20.7% 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 worth weighing if you expect to sell during market stress rather than ride it out.
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 1.77% against 2.39% for VWO.
Holdings Overlap
EEM and VWO share 678 holdings out of 5126 unique holdings combined, representing a 33.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in EEM | Weight in VWO | Difference |
|---|---|---|---|
| 9988:HK | 1.65% | 1.80% | 0.15% |
| 2454:TW | 1.50% | 1.64% | 0.14% |
| 2308:TW | 0.98% | 0.99% | 0.01% |
| 2317:TW | Pro | Pro | Pro |
| RELIANCE:MB | Pro | Pro | Pro |
| ICICIBANK:MB | Pro | Pro | Pro |
| 601398:SH | Pro | Pro | Pro |
| PDD:IE | Pro | Pro | Pro |
| VALE3:BV | Pro | Pro | Pro |
| 2327:TW | Pro | Pro | Pro |
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. On a $10,000 investment, that is $66 per year of difference.
Which performed better, EEM or VWO?
Over the past year EEM returned +36.65% vs +21.00% for VWO, so EEM leads on 1-year performance. Over the longest common window we track (22 years), EEM annualized +8.55% vs +4.99% for VWO. Past performance does not guarantee future results.
Which is riskier, EEM or VWO?
EEM has been the more volatile fund at 20.7% 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. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between EEM and VWO?
EEM and VWO share 678 common holdings with a 33.6% weight overlap. Combined, they hold 5126 unique securities.
Which pays a higher dividend, EEM or VWO?
EEM yields 1.77% while VWO yields 2.39%, so VWO currently pays the higher dividend yield.
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