Comparison of VWO and EEM: Both the Vanguard FTSE Emerging Markets ETF (VWO) and the iShares MSCI Emerging Markets ETF (EEM) provide exposure to large- and mid-cap stocks in emerging markets, with VWO offering broader diversification and a significantly lower expense ratio of 0.07% compared to EEM's 0.72%.
Sector Exposure: VWO has a more diversified portfolio with 6,059 stocks across various sectors, while EEM focuses more on technology with 1,198 stocks, leading to different sector weightings and potential country exposures over time.
Investment Considerations: Both ETFs offer similar dividend yields and five-year returns, but VWO's lower fees can result in substantial savings for investors with larger account balances, making it more appealing for cost-conscious investors.
Volatility and Risk: Investing in emerging markets can be riskier due to higher volatility, but both VWO and EEM provide ample diversification to help mitigate some of that risk, with EEM being more targeted and VWO offering a broader range of holdings.
Wall Street analysts forecast EEM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EEM is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
Wall Street analysts forecast EEM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EEM is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 58.260
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Current: 58.260
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
