What five years of weekly data say
- VWO returned +6.6% a year and EEM +8.2% a year over the past five years, dividends reinvested.
- VWO was the calmer ride: 16% annual volatility, against 18%.
- Near twins (correlation 0.97). They rise and fall in lockstep, so holding both adds almost no diversification.
- VWO costs less to hold: 0.06% a year against 0.72%, or $66 less per $10,000 each year.
The numbers side by side
| Metric | VWVWO | EEEEM |
|---|---|---|
| Price | $60.01 | $67.03 |
| Fund size | $168.36B | $31.21B |
| 1-year return | +13.6% | +28.9% (ahead) |
| 3-year return, a year | +18.0% | +23.2% (ahead) |
| 5-year return, a year | +6.6% | +8.2% (ahead) |
| Volatility, a year | 16% (ahead) | 18% |
| Worst drawdown | −29% (ahead) | −33% |
| Worst week | −7.0% (ahead)Mar 2025 | −8.4%Mar 2026 |
| Beta | 0.75 | 1.02 |
| Dividend yield | 2.29% | 1.66% |
| Expense ratio | 0.06% (ahead) | 0.72% |
Do VWO and EEM move together?
Correlation compares VWO’s and EEM’s weekly returns from Sep 2021 to Sep 2026. Two holdings near +1 fall on the same weeks, so owning both doesn’t cushion anything. Your portfolio has more than two lines, and Portfolio Terminal runs this check across every pair you hold.
How far each one fell
VWO
−29%
From its Nov 2021 high to Oct 2022. Back at that high by Sep 2024.
EEM
−33%
From its Oct 2021 high to Oct 2022. Back at that high by Jun 2025.
Worst peak-to-trough fall on weekly closes · dividends reinvested
How much of it is the same money
VWO vs EEM: what people ask
Is VWO better than EEM?
Over the past five years, EEM delivered the higher return: +8.2% a year against +6.6% for VWO, dividends reinvested. It also fell further at its worst (−33% against −29%), so the extra return came with a rougher ride. Which is better depends on the job it does in your portfolio, and past returns don’t predict future ones.
What is the difference between VWO and EEM?
VWO is Vanguard FTSE Emerging Markets ETF, a fund with $168.36B in assets. EEM is iShares MSCI Emerging Markets ETF, a fund with $31.21B in assets. VWO charges 0.06% a year and EEM 0.72%. Counting only each fund’s ten largest positions, 23% of their money sits in the same companies.
Should I own both VWO and EEM?
Their weekly returns had a correlation of 0.97 over the past five years. They rise and fall in lockstep, so holding both adds almost no diversification. Whether that suits you depends on everything else you hold, which is the check Portfolio Terminal runs across a whole portfolio.
Which is riskier, VWO or EEM?
EEM swung more: 18% annual volatility against 16% for VWO. At their worst, VWO fell 29% and EEM 33% from a previous high. Against the broad market, their betas are 0.75 and 1.02.
Which pays a higher dividend, VWO or EEM?
VWO currently yields 2.29%, against 1.66% for EEM. Yields move with price, so a higher yield can also mean a falling price.
Which is cheaper to hold, VWO or EEM?
VWO charges 0.06% a year and EEM 0.72%. On $10,000, that is $66.00 a year in favor of VWO.
Returns use weekly closes adjusted for dividends and splits, from Sep 2021 to Sep 2026. Quotes, fees and holdings come from public market data and refresh hourly. This page describes what happened; it is not investment advice, and past performance doesn’t predict future returns.