VWO vs. EEM: el dilema de costos vs. rendimiento en los fondos EtF de mercados emergentes

The debate between the Vanguard FTSE Emerging Markets ETF (VWO) and the iShares MSCI Emerging Markets ETF (EEM) has long captivated investors seeking exposure to the dynamic yet volatile world of emerging markets. While both funds aim to track the same broad asset class, their divergent expense ratios, return profiles, and structural characteristics create a compelling case study in the trade-offs between cost efficiency and performance. For investors focused on long-term value creation, the choice between these two exchange-traded funds (ETFs) demands a nuanced analysis of how fees, diversification, and risk-adjusted returns interact over time.

The Cost of Ownership: Expense Ratios and Tax Efficiency

The most striking difference between VWO and EEM lies in their expense ratios. VWO charges a mere 0.07%, while EEM's fee stands at 0.72%-a tenfold disparity that compounds significantly over decades. According to a report by the ETF comparison tool Tickeron, this cost gap translates into a material drag on EEM's net returns for investors, particularly in tax-inefficient accounts as per portfolio analysis. For example, over a 30-year horizon, a $10,000 investment in VWO would outperform EEM by approximately $5,000, assuming identical gross returns and annual compounding according to financial modeling. This underscores the critical role of expense ratios in long-term wealth accumulation, where even small differences in fees can amplify into substantial divergences.

Performance: Returns and Diversification

While lower costs are a clear advantage for VWO, its performance also warrants scrutiny. Over the five-year period from 2020 to 2025, VWO delivered an annualized return of 6.33%, outpacing EEM's 4.76% according to performance data. This gap, though modest, reflects VWO's broader diversification: the fund holds 6,059 stocks compared to EEM's 1,198, offering greater exposure to smaller and mid-cap companies in sectors like financial services and technology as reported in analysis. This structural breadth may enhance resilience during market downturns, as demonstrated during the 2020 pandemic selloff, when VWO's larger portfolio likely mitigated sector-specific shocks.

However, the 10-year annualized return data (2015–2025) reveals a narrower gap: VWO returned 6.10% versus EEM's 5.52% according to portfolio comparison. This suggests that while VWO has consistently outperformed EEM in the short to medium term, the latter's active management and MSCI index methodology may occasionally capture growth in high-momentum sectors. Yet, for long-term investors, the compounding effect of VWO's higher returns and lower fees remains a decisive edge.

Risk-Adjusted Returns: Sharpe, Sortino, and Beyond

Both ETFs exhibit nearly identical Sharpe ratios (1.14 for VWO, 1.15 for EEM), indicating comparable returns per unit of risk over the 10-year period as per performance metrics. However, the Sortino ratio-a measure of returns relative to downside risk-favors EEM slightly (1.96 vs. 1.93), while VWO excels in the Calmar ratio (return relative to maximum drawdown) and Martin ratio (return relative to volatility) according to risk analysis. These nuances highlight EEM's potential appeal to tactical investors seeking to hedge against specific risks, but for long-term value creation, VWO's superior Calmar ratio suggests a more favorable risk-reward profile.

Turnover and Tax Efficiency: A Closer Look

Turnover rates, which reflect the frequency of buying and selling within a fund, also influence tax efficiency. VWO's turnover rate in 2025 was reported as 0.5% as of October according to portfolio data, though a summary profile from December 2025 cites 8.00% as per updated reporting. This discrepancy may stem from differing reporting periods or methodologies, but EEM's 8.00% turnover aligns with VWO's higher figure if the latter's 0.5% is an annualized rate for a partial year according to comparison analysis. Regardless, both funds' low turnover rates-relative to actively managed counterparts-suggest minimal tax inefficiencies, though VWO's lower expense ratio still provides a marginal advantage.

Conclusion: The Case for VWO in Long-Term Portfolios

For investors prioritizing long-term value creation, VWO emerges as the superior choice. Its significantly lower expense ratio, broader diversification, and consistently higher returns-coupled with a favorable risk-adjusted performance-position it as a more efficient vehicle for compounding wealth. While EEM's slightly better Sortino ratio and active management may appeal to those seeking tactical flexibility, these benefits are often offset by its higher costs. In an era where fees increasingly dictate long-term outcomes, VWO's structural advantages make it a compelling option for patient, cost-conscious investors.