VWO vs EEM: Differences, Fees and Returns
VWO is cheaper: it charges 0.06% a year against 0.72% for EEM. That is €66 less a year per 10,000 invested; over a plan of 10,000 up front plus 200 a month for 30 years, the accumulated cost gap comes to about €43,368.
They do not track the same thing: VWO follows the FTSE Emerging Markets All Cap China A Inclusion Index and EEM the MSCI Emerging Markets Index. Any difference in returns will come mainly from that exposure, not from the fee.
Over the last 10 years, EEM returned 8.62% a year against 8.00% for VWO. That is past performance and may not repeat.
Head-to-head comparison
| VWO | EEM | |
|---|---|---|
| Name | Vanguard FTSE Emerging Markets ETF | iShares MSCI Emerging Markets ETF |
| Provider | Vanguard | BlackRock |
| Index | FTSE Emerging Markets All Cap China A Inclusion Index | MSCI Emerging Markets Index |
| TER | 0.06% | 0.72% |
| Type | ETF | ETF |
| Domicile | United States | United States |
| Dividends | Distributing | Distributing |
| Launch date | March 4, 2005 | April 7, 2003 |
| Fund size | $168B | $31B |
| ISIN | — | — |
| Available to EU retail investors | No | No |
| Tax-free switch (Spain) | No | No |
Historical returns: VWO vs EEM (Aug 2016 – Aug 2026)
10,000 invested in Aug 2016 would be worth $21,592 in VWO and $22,855 in EEM today.
| VWO | EEM | |
|---|---|---|
| Annualised return | 8.00% | 8.62% |
| Total return | 115.92% | 128.55% |
| Annual volatility | 15.50% | 17.22% |
| Maximum drawdown | -31.86% | -36.52% |
| Monthly correlation | 0.98 | |
Calendar-year returns
| Year | VWO | EEM |
|---|---|---|
| 2026* | 12.71% | 23.12% |
| 2025 | 25.58% | 33.98% |
| 2024 | 10.58% | 6.50% |
| 2023 | 9.27% | 8.99% |
| 2022 | -17.99% | -20.56% |
| 2021 | 1.30% | -3.62% |
| 2020 | 15.19% | 17.03% |
| 2019 | 20.76% | 18.20% |
| 2018 | -14.77% | -15.31% |
| 2017 | 31.48% | 37.28% |
* Current year, to Aug 2026.
Month-end closing prices adjusted for dividends and net of fund costs. Broker fees and taxes are not included. Past performance does not guarantee future results.