Dividend comparison
VWO vs EEM: Which Is Better?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Vanguard FTSE Emerging Markets ETF and iShares MSCI Emerging Markets ETF, side by side. Updated October 21, 2026.
VWO vs EEM: key differences
The short answer, from the latest data on this page.
- Fees. VWO is cheaper at 0.06% a year versus 0.72% for EEM. On $10,000 that is $66 a year less in fees.
- Income. VWO pays more income, yielding 2.54% over the last twelve months versus 1.76% for EEM. That is about $78 more a year on $10,000. VWO pays annual, EEM pays semi-annual.
- Performance. Over the last 5 years, EEM returned 35.7% versus 28.9% for VWO, with dividends reinvested. $10,000 would have grown to $13,573 in EEM and $12,887 in VWO.
- Risk. EEM has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -33.8%, against -30.2% for VWO.
- Diversification. VWO holds 5,942 positions and EEM holds 1,186.
- Dividend growth. EEM grew its yearly payout 6.4% a year over the last 4 years, versus 3.6% for VWO.
- Size. VWO is the larger fund with $164.7 billion in assets, against $29.4 billion for EEM.
Bottom line: VWO fits better if you care most about lower fees, more income today, smaller drawdowns and broader diversification. EEM fits better if you care most about stronger 5-year returns and faster dividend growth.
Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
| Metric | VWO Vanguard FTSE Emerging Markets ETF | EEM iShares MSCI Emerging Markets ETF |
|---|---|---|
| Dividend yield (TTM) | 2.54% | 1.76% |
| Dividend / share (TTM) | $1.48 | $1.11 |
| Payout frequency | Annual | Semi-annual |
| Last dividend | $0.1137 on Sep 22, 2026 | $0.3508 on Jun 18, 2026 |
| Ex-dividend date | Sep 18, 2026 | Jun 15, 2026 |
| Dividend growth (CAGR) | 3.6% over 4 yrs | 6.4% over 4 yrs |
| Price | $58.25 | $63.32 |
| Dividend growth streak | 1 year | 1 year |
| Beta | 0.78 | 1.03 |
| Max drawdown (5Y) | -30.2% | -33.8% |
| Market cap | $164.76B | $29.13B |
| Exchange | AMEX | AMEX |
| Expense ratio | 0.06% | 0.72% |
| Assets under management | $164.70B | $29.39B |
| Number of holdings | 5942 | 1186 |
| Top 10 concentration | 27.3% | — |
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.
VWO
$21.17/mo
$254 /yr at 2.54% yield
EEM
$14.66/mo
$176 /yr at 1.76% yield
Dividend history
Total dividends paid per share in each calendar year. VWO pays annual; EEM pays semi-annual.
| Year | VWO | EEM |
|---|---|---|
| 2025 | $1.4973 | $1.2149 |
| 2024 | $1.4089 | $1.0172 |
| 2023 | $1.4472 | $1.0582 |
| 2022 | $1.6037 | $0.9722 |
| 2021 | $1.2994 | $0.9476 |
Strategy: International equity
Funds that hold companies outside the United States, either across developed markets like Europe, Japan and Canada, across emerging markets like China, India and Taiwan, or both. Index providers disagree on edge cases such as whether South Korea is developed or emerging and whether small caps or Canada are included, which explains most of the gap between similar-looking funds. Dividend yields are usually higher than in the US market.
Returns are exposed to currency moves and to political and regulatory risk that US investors do not face at home, and emerging markets add wide swings.
Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $12,887 in VWO and $13,573 in EEM.
| Period | VWO | EEM |
|---|---|---|
| 1 month | -2.93% | -5.53% |
| 3 months | 0.74% | -0.38% |
| Year to date | 8.68% | 16.33% |
| 1 year | 8.25% | 17.56% |
| 3 years | 66.91% | 84.88% |
| 5 years | 28.87% | 35.73% |
- VWO
- EEM
Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.
Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
- VWO
- EEM
Top 10 holdings
Largest positions by portfolio weight.
VWO5942 holdings total
| Name | Weight |
|---|---|
| 2330.TWTaiwan Semiconductor Manufacturing Co Ltd | 15.72% |
| 0700.HKTencent Holdings Ltd | 2.81% |
| 9988.HKAlibaba Group Holding Ltd | 2.11% |
| 2454.TWMediaTek Inc | 1.87% |
| 2308.TWDelta Electronics Inc | 0.94% |
| 0939.HKChina Construction Bank Corp | 0.91% |
| 2317.TWHon Hai Precision Industry Co Ltd | 0.79% |
| HDFCBANK.BOHDFC Bank Ltd | 0.78% |
| HDFCBANK.NSHDFC Bank Ltd | 0.70% |
| RELIANCE.BOReliance Industries Ltd | 0.69% |
Quick verdict
VWO fits better if you care most about lower fees, more income today, smaller drawdowns and broader diversification. EEM fits better if you care most about stronger 5-year returns and faster dividend growth. Model the holding inside your real portfolio before deciding.
Still deciding? Compare them in your portfolio
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Frequently asked questions
Is VWO or EEM better for dividend income?
It depends on your goals. VWO currently yields 2.54% Trailing Twelve Months (TTM) while EEM yields 1.76%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between VWO and EEM?
Vanguard FTSE Emerging Markets ETF (VWO) is an ETF listed on AMEX. iShares MSCI Emerging Markets ETF (EEM) is an ETF listed on AMEX. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, VWO or EEM?
VWO has the lower expense ratio. VWO charges 0.06% a year and EEM charges 0.72%, a difference of $66 a year on a $10,000 investment.
Which has performed better, VWO or EEM?
Over the last 5 years, EEM has the higher total return with dividends reinvested: VWO returned 28.9% and EEM returned 35.7%. Past performance does not predict future returns.
Which is riskier, VWO or EEM?
Measured by the worst peak-to-trough decline over the last five years, EEM has been riskier: VWO fell as much as 30.2% and EEM as much as 33.8%. Their betas are 0.78 and 1.03.
How often do VWO and EEM pay dividends?
VWO pays annual and EEM pays semi-annual.
How much income does $10,000 in VWO vs EEM generate?
At current TTM yields, $10,000 in VWO would generate roughly $21.17 per month ($254 annually). The same amount in EEM would produce about $14.66 per month ($176 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both VWO and EEM?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare VWO vs EEM with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how VWO and EEM fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.
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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.