EEM vs IVV
EEM vs IVV
iShares MSCI Emerging Markets ETF vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. EEM delivered stronger 1-year returns. EEM offers more diversification with 1109 holdings.
Side-by-Side Comparison
| Metric | EEM | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.72% | 0.03% | |
| AUM | $28.6B | $865.2B | |
| Dividend Yield | 1.63% | 1.09% | |
| Holdings | 1,224 | 508 | |
| YTD Return | +17.32% | +13.80% | |
| 1Y Return | +35.26% | +23.70% | |
| 3Y Return (annualized) | +20.82% | +21.49% | |
| 5Y Return (annualized) | +7.23% | +13.43% | |
| Volatility (annualized) | 20.8% | 15.1% | |
| Max Drawdown | -68.8% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Apr 7, 2003 | May 15, 2000 |
EEM vs IVV Performance
iShares MSCI Emerging Markets ETF (EEM) is a ETF from iShares by BlackRock (US) and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year EEM returned +35.26% while IVV returned +23.70%. Year to date, EEM is up 17.32% versus a gain of 13.80% for IVV.
Over three years, EEM compounded at +20.82% per year against +21.49% for IVV; over five years the annualized figures are +7.23% and +13.43% respectively. Across the full 23-year window we track, EEM has the edge at +8.49% annualized vs +7.05%. 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 IVV. 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 -56.5% for IVV. 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
EEM charges 0.72% per year while IVV 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, EEM currently yields 1.63% against 1.09% for IVV.
Holdings Overlap
EEM and IVV share 3 holdings out of 1611 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, EEM or IVV?
EEM has an expense ratio of 0.72% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $69 per year of difference.
Which performed better, EEM or IVV?
Over the past year EEM returned +35.26% vs +23.70% for IVV, so EEM leads on 1-year performance. Over the longest common window we track (23 years), EEM annualized +8.49% vs +7.05% for IVV. Past performance does not guarantee future results.
Which is riskier, EEM or IVV?
EEM has been the more volatile fund at 20.8% annualized versus 15.1% for IVV. Worst drawdown: EEM -68.8% vs IVV -56.5%.
Should I hold both EEM and IVV?
EEM and IVV have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EEM and IVV?
EEM and IVV share 3 common holdings with a 0.2% weight overlap. Combined, they hold 1611 unique securities.
Which pays a higher dividend, EEM or IVV?
EEM yields 1.63% while IVV yields 1.09%, so EEM currently pays the higher dividend yield.
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