VWO vs. EEM: One Emerging Markets ETF Costs 10X More. Is It Worth It?
Asset size, sector exposure, and risk profiles set these two emerging markets ETFs apart. Explore how portfolio composition impacts investor outcomes.
VWO vs. EEM: One Emerging Markets ETF Costs 10X More. Is It Worth It?
Overview
Vanguard FTSE Emerging Markets ETF (NYSEMKT:VWO) provides a significantly lower expense ratio and higher dividend yield than iShares MSCI Emerging Markets ETF (NYSEMKT:EEM), which maintains a higher technology weighting.
Both funds provide exposure to developing economies but follow different index providers. While the iShares fund tracks the MSCI Emerging Markets Index, the Vanguard fund follows the FTSE Emerging Markets All Cap China A Inclusion Index, leading to meaningful differences in costs, risk profiles, and specific country weightings.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.
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