EEM vs VXUS

Quick Verdict

VXUS has a lower expense ratio. EEM delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.

Lower Fees: VXUSHigher Returns: EEMMore Diversified: VXUS

Side-by-Side Comparison

MetricEEMVXUSWinner
Expense Ratio0.72%0.05%
AUM$28.6B$156.5B
Dividend Yield1.63%2.60%
Holdings1,2248,747
YTD Return+17.32%+14.57%
1Y Return+35.26%+27.82%
3Y Return (annualized)+20.82%+19.27%
5Y Return (annualized)+7.23%+9.28%
Volatility (annualized)20.8%15.1%
Max Drawdown-68.8%-39.9%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
InceptionApr 7, 2003Jan 26, 2011

EEM vs VXUS Performance

iShares MSCI Emerging Markets ETF (EEM) is a ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year EEM returned +35.26% while VXUS returned +27.82%. Year to date, EEM is up 17.32% versus a gain of 14.57% for VXUS.

Over three years, EEM compounded at +20.82% per year against +19.27% for VXUS; over five years the annualized figures are +7.23% and +9.28% respectively. Across the full 16-year window we track, EEM has the edge at +8.49% annualized vs +4.86%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

EEM has been the more volatile fund, with annualized monthly volatility of 20.8% compared with 15.1% for VXUS. 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 -39.9% for VXUS. 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 0.90. 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 VXUS charges 0.05%. On a $10,000 position that is $72 vs $5 annually, a gap of $67 per year that compounds over a long holding period. On income, EEM currently yields 1.63% against 2.60% for VXUS.

Holdings Overlap

16.0%overlap

EEM and VXUS share 736 holdings out of 8234 unique holdings combined, representing a 16.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in EEMWeight in VXUSDifference
2330:TW15.27%3.41%11.86%
000660:KR6.82%0.90%5.92%
9988:HK1.65%0.73%0.92%
2454:TWProProPro
2308:TWProProPro
2317:TWProProPro
RELIANCE:MBProProPro
ICICIBANK:MBProProPro
402340:KRProProPro
7203:SAProProPro
See all 10 holdings EEM shares with VXUS
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, EEM or VXUS?

EEM has an expense ratio of 0.72% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $67 per year of difference.

Which performed better, EEM or VXUS?

Over the past year EEM returned +35.26% vs +27.82% for VXUS, so EEM leads on 1-year performance. Over the longest common window we track (16 years), EEM annualized +8.49% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, EEM or VXUS?

EEM has been the more volatile fund at 20.8% annualized versus 15.1% for VXUS. Worst drawdown: EEM -68.8% vs VXUS -39.9%.

Should I hold both EEM and VXUS?

EEM and VXUS have a monthly-return correlation of 0.90, 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 VXUS?

EEM and VXUS share 736 common holdings with a 16.0% weight overlap. Combined, they hold 8234 unique securities.

Which pays a higher dividend, EEM or VXUS?

EEM yields 1.63% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.

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