Which Is the Better Buy: Vanguard's Total World ETF or iShares' Emerging Markets EEM?

Sara Appino, The Motley Fool

Sat, July 18, 2026 astatine 9:38 AM CDT 4 min read

Comparing Vanguard Total World Stock ETF (NYSEMKT:VT) and iShares MSCI Emerging Markets ETF (NYSEMKT:EEM) reveals a trade-off betwixt wide planetary diversification and concentrated emerging marketplace vulnerability astatine a higher cost.

While some funds connection important vulnerability to planetary stocks, they service antithetic strategical roles successful a portfolio. iShares MSCI Emerging Markets ETF focuses strictly connected the volatile but high-growth imaginable of processing economies similar China and South Korea. Conversely, Vanguard Total World Stock ETF provides a "one-stop shop" for planetary equity vulnerability crossed each marketplace caps.

Snapshot (cost & size)

Beta measures terms volatility comparative to the S&P 500; beta is calculated from monthly returns implicit the disposable money past (up to 5 years). The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months. Dividend output is the trailing-12-month organisation yield.

Vanguard Total World Stock ETF is the acold much affordable enactment for semipermanent investors, featuring an disbursal ratio of 0.06% compared to 0.72% for iShares MSCI Emerging Markets ETF. The trailing-12-month dividend yields are precise similar, showing lone a 0.12 percent constituent quality betwixt the 2 funds.

Performance & hazard examination

What's wrong

Vanguard Total World Stock ETF holds 10,070 stocks, seeking to way the FTSE Global All Cap Index. Its largest positions see Nvidia (NASDAQ:NVDA) astatine 4%, Apple (NASDAQ:AAPL) astatine 3.59%, and Microsoft (NASDAQ:MSFT) astatine 2.38%. The portfolio is diversified crossed assorted sectors, including Technology (31%), Financial Services (16%), and Industrials (12%). The money was launched successful 2008. Vanguard Total World Stock ETF has paid $2.48 per stock implicit the trailing 12 months, which connected its caller ~$156.13 stock terms works retired to a 1.60% yield.

iShares MSCI Emerging Markets ETF aims to replicate an scale of ample and mid-sized companies successful emerging markets, holding 1,225 stocks. Its apical holdings see Taiwan Semiconductor Manufacturing (2330.TW) astatine 15.37%, Samsung Electronics Ltd (005930.KS) astatine 7.24%, and SK Hynix (000660.KS) astatine 6.37%. Primary assemblage concentrations for the money see Technology (46%), Financial Services (18%), and Consumer Cyclical (7%). The money was launched successful 2003. iShares MSCI Emerging Markets ETF has paid $1.11 per stock implicit the trailing 12 months, which connected its caller ~$64.19 stock terms works retired to a 1.70% yield.