EEM vs VOO
EEM vs VOO
iShares MSCI Emerging Markets ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. EEM delivered stronger 1-year returns. EEM offers more diversification with 1109 holdings.
Side-by-Side Comparison
| Metric | EEM | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.72% | 0.03% | |
| AUM | $28.6B | $979.0B | |
| Dividend Yield | 1.63% | 1.09% | |
| Holdings | 1,224 | 509 | |
| YTD Return | +17.32% | +13.80% | |
| 1Y Return | +35.26% | +23.71% | |
| 3Y Return (annualized) | +20.82% | +21.50% | |
| 5Y Return (annualized) | +7.23% | +13.44% | |
| Volatility (annualized) | 20.8% | 14.1% | |
| Max Drawdown | -68.8% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 7, 2003 | Sep 7, 2010 |
EEM vs VOO Performance
iShares MSCI Emerging Markets ETF (EEM) 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 EEM returned +35.26% while VOO returned +23.71%. Year to date, EEM is up 17.32% versus a gain of 13.80% for VOO.
Over three years, EEM compounded at +20.82% per year against +21.50% for VOO; over five years the annualized figures are +7.23% and +13.44% respectively. Across the full 16-year window we track, VOO has the edge at +13.58% annualized vs +8.49%. 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 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 -68.8% for EEM 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
EEM 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, EEM currently yields 1.63% against 1.09% for VOO.
Holdings Overlap
EEM and VOO share 1 holdings out of 1613 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in EEM | Weight in VOO | Difference |
|---|---|---|---|
| HAL | 0.06% | 0.04% | 0.02% |
Frequently Asked Questions
Which is cheaper, EEM or VOO?
EEM 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, EEM or VOO?
Over the past year EEM returned +35.26% vs +23.71% for VOO, so EEM leads on 1-year performance. Over the longest common window we track (16 years), EEM annualized +8.49% vs +13.58% for VOO. Past performance does not guarantee future results.
Which is riskier, EEM or VOO?
EEM has been the more volatile fund at 20.8% annualized versus 14.1% for VOO. Worst drawdown: EEM -68.8% vs VOO -34.3%.
Should I hold both EEM and VOO?
EEM and VOO have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EEM and VOO?
EEM and VOO share 1 common holdings with a 0.0% weight overlap. Combined, they hold 1613 unique securities.
Which pays a higher dividend, EEM or VOO?
EEM yields 1.63% while VOO yields 1.09%, so EEM currently pays the higher dividend yield.
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