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VOO vs. IEMG

Vanguard S&P 500 ETF

VOO
$--
vs

iShares Core MSCI Emerging Markets ETF

IEMG
$--

Correlation

0.65
VOOVanguard S&P 500 ETF
IEMGiShares Core MSCI Emerging Markets ETF

What is VOO?

Invests in stocks in the S&P 500 Index representing 500 of the largest U.S. companies. Goal is to closely track the index return which is considered a gauge of overall U.S. stock returns. Offers high potential for investment growth; share value rises and falls more sharply than that of funds holding bonds. More appropriate for long-term goals where your moneys growth is essential.

Snapshot
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VOO Vanguard S&P 500 ETF
IEMG iShares Core MSCI Emerging Markets ETF
Inception date
Sep 07 2010
Oct 18 2012
Expense ratio
0.03%
0.09%
VOO has a lower expense ratio than IEMG by 0.06%. This can indicate that it’s cheaper to invest in VOO than IEMG.
Type
US Equities
Global Ex. US Equities
VOO targets investing in US Equities, while IEMG targets investing in Global Ex. US Equities.
Fund owner
Vanguard
Blackrock (iShares)
VOO is managed by Vanguard, while IEMG is managed by Blackrock (iShares).
Volume (1m avg. daily)
$1,621,694,598
$497,040,322
Both VOO and IEMG are considered high-volume assets. They’re less likely to be affected by issues like slippage and failed orders on Composer than low-volume assets.
AUM
$325,714,712,538
$70,028,258,238
VOO has more assets under management than IEMG by $255,686,454,300. Higher AUM can be associated with better liquidity and lower slippage in trading.
Associated index
S&P 500 Index
MSCI Emerging Markets Investable Market Index
VOO is based off of the S&P 500 Index, while IEMG is based off of the MSCI Emerging Markets Investable Market Index
Inverse/Leveraged
No
No
VOO and IEMG use the same leverage ratio. Inverse and leveraged ETFs can be used to either take an opposite position or amplify returns of a given index.
Passive/Active
Passive
Passive
VOO and IEMG both use a Passive investing strategy. In an actively managed fund, the fund manager makes decisions about how funds are invested. A passively managed fund typically tries to track or follow a market index.
Dividend
No
No
VOO and IEMG may offer dividends. The frequency and yield of the dividend may not be the same.
Prospectus
Neither VOO nor IEMG require a K1.
VOO and IEMG’s Correlation
When ETFs are correlated, there are 3 main topics to analyze that will help you build your automated trading strategy: liquidity, expense, and risk.
  • Liquidity: In an active trading strategy (trading multiple time per week), it’s important to consider the liquidity of the ETF you’re using. Lower liquidity can mean more money lost in slippage. AUM and average daily volume are both indicators of liquidity.
  • Expense: Some ETFs are more expensive to use than others. For strategies that are focused on longer holding periods, it’s important to factor in how expensive it is to hold this ETF. Expense ratio is the main indicator of how expensive an ETF is.
  • Risk: Some ETFs will be highly correlated, but have varying degrees of returns, due to leverage. It’s important to consider if an ETF is using leverage or not. The main indicators of a riskier ETF will be the use of leverage and higher standard deviation or max drawdown in a backtest.

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Disclaimers

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We show information directly obtained from our data provider, Xignite. Data shown here is provided by Xignite, an unaffiliated third party. Composer believes the information shown here is reliable, but has not been verified and there is no guarantee that the information is accurate.

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We show information based on calculations performed by Composer using data from our provider. Information provided here is based on calculations performed by Composer using data sourced from Xignite, an unaffiliated third party. Composer believes this information is reliable, but has not verified the data and there is no guarantee that the calculations are accurate.