A head-to-head comparison of iShares MSCI Emerging Markets ETF and Vanguard FTSE Emerging Markets ETF covering yield, cost, risk, and income potential.
Projections assume the current yield and share price remain constant. Actual results will vary.
Total returns
100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.
EEM has outpaced VWO over the trailing twelve months, posting a 28.20% total return against 12.28%. The lead holds up over 10 years too: EEM has compounded at 8.37% a year, against 7.62% for VWO. Figures are total returns: price change plus every distribution reinvested.
Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 2, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Mar 2005” measures every fund from March 10, 2005 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.
Side-by-side snapshot
Side-by-side snapshot. Each row is one metric;
each column is one fund.
Bottom lineEEM and VWO are both for investors who want broad equity exposure — so strategy isn't the deciding factor here. Cost is: VWO charges 0.06% against 0.72% for EEM, and between two funds this similar that gap comes straight out of your return every year you hold.
ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.
iShares is one of the largest ETF providers globally, known for offering a broad, diversified lineup of exchange-traded funds across multiple asset classes and investment strategies. The company operates 215 funds spanning 15 distinct families, including popular offerings in dividend income, covered call strategies, bonds, equities, ESG-focused investments, and factor-based approaches, with widely-held tickers like AGG (bond), ACWI (global equity), and AOA (allocation). iShares is characterized by its comprehensive fund ecosystem that serves both core portfolio holdings and specialized investment strategies, making it a prominent player for investors seeking both traditional and alternative income-generating ETF solutions.
See our curated list of related YouTube videos on EEM.
ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.
Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.
See our curated list of related YouTube videos on VWO.
EEM (iShares MSCI Emerging Markets ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both dividend ETFs, but they take different approaches.
EEM offers the higher yield at 1.04% vs 0.77% for VWO. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.
VWO is cheaper with an expense ratio of 0.06% compared to 0.72%.
They have different reference exposures: EEM is linked to MSCI Emerging Markets Index while VWO is linked to FTSE Emerging Markets All Cap China A Inclusion Index, which means their performance drivers differ.
VWO is the larger fund by assets ($127B), but assets alone do not establish trading costs or liquidity.
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On a $10,000 investment, EEM would generate roughly $52.00 cash per distribution, while VWO would produce $19.25 cash per distribution, at current distribution rates.
EEM yield1.04%
VWO yield0.77%
Cash diff on $10K$32.75
Cost & efficiency
Over 10 years on $10,000, EEM would cost approximately $720 in fees vs $60 for VWO (simplified, not compounded). The $660.00 difference may be offset by yield or performance.
EEM ER0.72%
VWO ER0.06%
Strategy & risk
EEM tracks MSCI Emerging Markets Index with an index approach, while VWO tracks FTSE Emerging Markets All Cap China A Inclusion Index with an international approach. Beta is 1.02 for EEM and 0.75 for VWO, making VWO the less volatile of the two by this measure.
EEM beta1.02
VWO beta0.75
Fund details
EEM is managed by iShares (launched 04/07/2003) with $31.7B in assets. VWO is managed by Vanguard (launched 03/04/2005) with $127B in assets.
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Frequently asked questions
What is the current distribution rate for EEM and VWO?
EEM currently distributes 1.04% and VWO 0.77%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.
Is EEM or VWO better for dividend income?
It depends on your goals. EEM currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.
What is the difference between EEM and VWO?
EEM (iShares MSCI Emerging Markets ETF) tracks MSCI Emerging Markets Index with an index approach, while VWO (Vanguard FTSE Emerging Markets ETF) tracks FTSE Emerging Markets All Cap China A Inclusion Index with an international approach. They are issued by iShares and Vanguard respectively.
Can I hold both EEM and VWO?
Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.
Is EEM or VWO safer?
By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — EEM scores 84, VWO scores 54, so EEM's payout currently looks the more resilient of the two. VWO has also shown lower price volatility (beta 0.75 vs 1.02 for EEM). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.
Which has lower fees, EEM or VWO?
EEM has an expense ratio of 0.72% while VWO charges 0.06%. Lower fees mean more of your investment returns stay in your pocket over time.
How much income does $10,000 in EEM vs VWO generate?
At current rates, $10,000 in EEM would generate roughly $52.00 cash per distribution ($104.00 annually). The same in VWO would produce about $19.25 cash per distribution ($77.00 annually).
Which has performed better historically, EEM or VWO?
EEM has outpaced VWO over the trailing twelve months, posting a 28.20% total return against 12.28%. The lead holds up over 10 years too: EEM has compounded at 8.37% a year, against 7.62% for VWO. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.
Explore related screeners
Lateral filters that include these funds — browse the full peer set on DividendVision.
EEM and VWO are both ETFs tracking emerging-market equity indexes, but they differ materially in size, cost structure, and underlying exposure. The expense gap of 0.66% is the sharpest dividing line between them. The two funds' betas suggest different market sensitivity—EEM reports 1.02 while VWO shows 0.75—though the difference likely reflects index composition and weighting rather than a fundamental strategy divergence.
Who each is best for
EEM: Fits investors seeking broad emerging-market exposure through the MSCI methodology, which may appeal to those comfortable with slightly higher fees in exchange for established index recognition and semi-annual distribution timing.
VWO: Designed for cost-conscious emerging-market allocators who prioritize minimizing drag from expenses and value Vanguard's scale, lower turnover efficiency, and quarterly income cadence.
Key risks to know
Index composition risk:EEM and VWO track different indexes (MSCI versus FTSE All Cap China A Inclusion), which can lead to meaningfully different country allocations, sector weightings, and performance patterns—particularly in Chinese A-share exposure and smaller-cap inclusion. Holdings overlap should be verified before combining positions.
Currency exposure: Both funds carry unhedged exposure to emerging-market currencies, which can amplify or dampen equity returns depending on dollar strength. A prolonged period of currency weakness could meaningfully reduce returns.
Concentration in China and Asia: Emerging markets are dominated by Chinese and other Asian holdings. A downturn in China's economy or policy shift affecting tech, finance, or state-owned enterprises could crimp returns across both funds.
Valuation and cyclicality: Emerging markets tend to trade at cyclical extremes. If growth expectations reset or capital flows reverse, both funds face heightened downside risk relative to developed markets.
Bottom line
VWO's 0.06% expense ratio and $127B asset base make it the lower-cost entry point for emerging-market exposure. EEM offers the MSCI Emerging Markets framework and a higher yield, but at a material cost disadvantage over time. Past performance does not predict future results.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
Learn the method
The metrics behind this comparison, explained in the Academy.
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