BlackRock, Vanguard ETFs Diverge Over 170% AI-Fueled Rally

BlackRock's iShares MSCI Emerging Markets ETF (EEM) and Vanguard's FTSE Emerging Markets ETF (VWO) have tracked similar indexes but diverged significantly during the recent artificial intelligence-driven market rally. EEM gained approximately 170% more than VWO over the measured period, according to performance data. The divergence resulted from different index methodologies and sector weightings, with EEM holding larger positions in technology and artificial intelligence-related holdings compared to VWO. Both funds track emerging-market indexes but with different composition rules that produced substantially different returns during the rally.

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