HEEM vs VOO
iShares Currency Hedged MSCI Emerging Markets ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. HEEM delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | HEEM | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.72% | 0.03% | |
| AUM | $276M | $979.0B | |
| Dividend Yield | 1.75% | 1.09% | |
| Holdings | 1,327 | 509 | |
| YTD Return | +16.51% | +13.44% | |
| 1Y Return | +34.34% | +22.62% | |
| 3Y Return (annualized) | +21.53% | +21.47% | |
| 5Y Return (annualized) | +8.83% | +13.27% | |
| Volatility (annualized) | 14.2% | 14.1% | |
| Max Drawdown | -33.5% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 23, 2014 | Sep 7, 2010 |
HEEM vs VOO Performance
iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) is a ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year HEEM returned +34.34% while VOO returned +22.62%. Year to date, HEEM is up 16.51% versus a gain of 13.44% for VOO.
Over three years, HEEM compounded at +21.53% per year against +21.47% for VOO; over five years the annualized figures are +8.83% and +13.27% respectively. Across the full 12-year window we track, VOO has the edge at +13.55% annualized vs +7.63%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HEEM has been the more volatile fund, with annualized monthly volatility of 14.2% compared with 14.1% for VOO. 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 -33.5% for HEEM and -34.3% for VOO. 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HEEM charges 0.72% per year while VOO charges 0.03%. On a $10,000 position that is $72 vs $3 annually, a gap of $69 per year that compounds over a long holding period. On income, HEEM currently yields 1.75% against 1.09% for VOO.
Holdings Overlap
HEEM and VOO share 0 holdings out of 534 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HEEM or VOO?
HEEM has an expense ratio of 0.72% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $69 per year of difference.
Which performed better, HEEM or VOO?
Over the past year HEEM returned +34.34% vs +22.62% for VOO, so HEEM leads on 1-year performance. Over the longest common window we track (12 years), HEEM annualized +7.63% vs +13.55% for VOO. Past performance does not guarantee future results.
Which is riskier, HEEM or VOO?
HEEM has been the more volatile fund at 14.2% annualized versus 14.1% for VOO. Worst drawdown: HEEM -33.5% vs VOO -34.3%.
Should I hold both HEEM and VOO?
HEEM and VOO have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HEEM and VOO?
HEEM and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 534 unique securities.
Which pays a higher dividend, HEEM or VOO?
HEEM yields 1.75% while VOO yields 1.09%, so HEEM currently pays the higher dividend yield.
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