EEM vs VTI
EEM vs VTI
iShares MSCI Emerging Markets ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. EEM delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | EEM | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.72% | 0.03% | |
| AUM | $28.6B | $663.5B | |
| Dividend Yield | 1.63% | 1.07% | |
| Holdings | 1,224 | 3,543 | |
| YTD Return | +17.32% | +14.20% | |
| 1Y Return | +35.26% | +24.16% | |
| 3Y Return (annualized) | +20.82% | +21.12% | |
| 5Y Return (annualized) | +7.23% | +12.37% | |
| Volatility (annualized) | 20.8% | 15.3% | |
| Max Drawdown | -68.8% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 7, 2003 | May 24, 2001 |
EEM vs VTI Performance
iShares MSCI Emerging Markets ETF (EEM) is a ETF from iShares by BlackRock (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year EEM returned +35.26% while VTI returned +24.16%. Year to date, EEM is up 17.32% versus a gain of 14.20% for VTI.
Over three years, EEM compounded at +20.82% per year against +21.12% for VTI; over five years the annualized figures are +7.23% and +12.37% respectively. Across the full 23-year window we track, EEM has the edge at +8.49% annualized vs +8.14%. 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 15.3% for VTI. 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 -56.6% for VTI. 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
EEM charges 0.72% per year while VTI 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 1.07% for VTI.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, EEM or VTI?
EEM has an expense ratio of 0.72% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $69 per year of difference.
Which performed better, EEM or VTI?
Over the past year EEM returned +35.26% vs +24.16% for VTI, so EEM leads on 1-year performance. Over the longest common window we track (23 years), EEM annualized +8.49% vs +8.14% for VTI. Past performance does not guarantee future results.
Which is riskier, EEM or VTI?
EEM has been the more volatile fund at 20.8% annualized versus 15.3% for VTI. Worst drawdown: EEM -68.8% vs VTI -56.6%.
Should I hold both EEM and VTI?
EEM and VTI have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EEM and VTI?
EEM and VTI share 2 common holdings with a 0.0% weight overlap. Combined, they hold 3890 unique securities.
Which pays a higher dividend, EEM or VTI?
EEM yields 1.63% while VTI yields 1.07%, so EEM currently pays the higher dividend yield.
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