EEM’s best feature is its liquidity. 46.2 million shares trade per day as opposed to 1.6 million for VWO. For investors that deal with large trades, EEM takes the front position, as there is more liquidity and less chance for small discounts to pop up, say insiders.
VWO gives exposure to China at 13.9%, Brazil 13.5%, South Korea 12.9%, Taiwan 11.7%, and India at 7%. The top three holdings are Gazprom 3.7%, China Mobile Ltd 2.8% and Samsung Electronics 1.8%. VWO gives Asia a heavier weighting than EEM, and the exposure to India is a plus.
When it comes down to which one you choose, it’s a matter of deciding where you’d like your exposure and what’s most important to you. Both funds right now are sitting below their 200-day moving averages, so you have awhile to decide.