Relative Intelligence · Emerging Markets Equity
How Vanguard FTSE Emerging Markets ETF (VWO) compares with the whole market and its popular alternatives
Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on VWO alone. It places VWO (Vanguard FTSE Emerging Markets ETF) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where VWO stands in the market, and of the alternatives worth a closer look.
Period covered: VWO's full trading record, from March 2005 through September 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of October 22, 2026.
Data as of October 22, 2026. Full tables and charts read best on a larger screen.
This page answers the following questions about VWO
Key findings
Not AI-generatedThese key findings are generated by our proprietary relative intelligence engine, directly from the data on this page.
- Right nowOver the past 6 months, VWO fell 3.0% while the S&P 500 rose 8.0%. Not every peer went the same way. Over the past 6 months, SPYM (State Street SPDR Portfolio S&P 500 ETF) rose 8.0% and EMQQ (EMQQ The Emerging Markets Internet ETF) fell 12.3%. Consistency ↓
- Fund or market?Not a move of its own: the emerging markets ETF EEM (iShares MSCI Emerging Markets ETF) fell 5.0% over the past 3 months, with IEMG (iShares Core MSCI Emerging Markets ETF, down 4.5%) and EEM (down 5.0%), while the S&P 500 rose 2.5%. Its similar funds did not move as one over the past 3 months: SPYM (State Street SPDR Portfolio S&P 500 ETF) rose 2.5%, while EEM fell 5.0%.
- Long termVWO turned $10,000 into $19,600 over the past decade, against $41,600 in the S&P 500. Growth of $10,000 ↓
- In a crashAcross six sell-offs, VWO has typically fallen 1.2 times as far as the S&P 500. Crash tests ↓
- DiversificationVWO is some diversification, but not a hedge: a correlation of 0.63 with the S&P 500 over 5 years and 0.64 with the total US market, less closely than 70% of ETFs with at least $100 million in assets. When the S&P 500 had a down month, VWO usually fell with it (17 of 22 months). By year ↓
- Better options
- Popular alternatives
- VXUS (Vanguard Total International Stock ETF), DEM (WisdomTree Emerging Markets High Dividend Fund) and DGS (WisdomTree Emerging Markets SmallCap Dividend Fund) earned more than VWO with less volatility over the past 5 years. VXUS returned 8.0% a year at 16.4% volatility, against 5.0% a year at 17.5%.
- Nearby categories and themes
- EFAV (iShares MSCI EAFE Min Vol Factor ETF, international equity) and DFIV (Dimensional - International Value ETF, international large-cap value) earned more than VWO with less volatility over the past 5 years. EFAV returned 7.7% a year at 11.9% volatility, against 5.0% a year at 17.5%.
- Whole market
- 234 of the 3,641 stocks and funds worth at least $500 million earned more than VWO with less volatility over the past 5 years, among them VXUS (Vanguard Total International Stock ETF), VTV (Vanguard Morningstar Value ETF) and VIG (Vanguard Dividend Appreciation ETF).
How much would $10,000 in VWO have grown?
This chart tracks a hypothetical $10,000 investment in VWO over the past 19 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of VWO over the same span and VWO's popular alternatives, among those that traded for the entire period. A second view covers the past 5 years, the period the better options further down the page are judged on. It shows not only where each investment ended up but also how smooth or uneven the path was.
Note: The chart covers the past 19 years rather than VWO's full 21 years, because most of its popular alternatives have not traded that long.
- $10,000 invested in VWO at the end of September 2007 would have grown to $19,401 by September 2026, less than the $70,725 it would have become in SPY, an S&P 500 fund.
- Five of the six other investments on the chart ended ahead of VWO, and CHT finished highest, at $45,026.
Choose a period
From the end of September 2007 to the end of September 2026. Hover over a fund in the key to pick out its line. 1,394 of the 1,801 stocks and funds worth at least $500 million that traded the whole period ended ahead of VWO; the chart shows 5, closest alternatives first. The other 1 line is a popular alternative, shown for context.
- SPY (S&P 500)$70,725+607% total · +10.8% a year
- CHT$45,026+350% total · +8.2% a year
- VEA$25,083+151% total · +5.0% a year
- DEM$24,927+149% total · +4.9% a year
- SPEM$21,940+119% total · +4.2% a year
- EEM$20,027+100% total · +3.7% a year
- VWO$19,401+94.0% total · +3.5% a year
- EWW$18,452+84.5% total · +3.3% a year
From the end of September 2021 to the end of September 2026. Hover over a fund in the key to pick out its line. 1,807 of the 3,630 stocks and funds worth at least $500 million that traded the whole period ended ahead of VWO; the chart shows 5, closest alternatives first. The other 3 lines are popular alternatives, shown for context.
- SPY (S&P 500)$19,000+90.0% total · +13.7% a year
- XCEM$17,957+79.6% total · +12.4% a year
- DEM$16,526+65.3% total · +10.6% a year
- FNDE$16,394+63.9% total · +10.4% a year
- VEA$16,310+63.1% total · +10.3% a year
- PIE$15,898+59.0% total · +9.7% a year
- VXUS$15,652+56.5% total · +9.4% a year
- DGS$14,527+45.3% total · +7.8% a year
- EFAV$14,016+40.2% total · +7.0% a year
- VWO$13,754+37.5% total · +6.6% a year
VWO at a glance
This section summarizes the key facts about the fund, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout. These figures serve as the baseline for every comparison that follows.
Note: VWO began trading on March 10, 2005, so every figure here, including its worst decline, covers only the time since then. None of them reflect the dot-com bust.
- VWO's deepest decline since it began trading in 2005 was 67.7%, from October 2007 to November 2008. It took about nine years from the low to climb back to its old high.
- Over 20 full calendar years, VWO's best was 2009, when it returned 76.3%, and its worst was 2008, when it lost 52.5%. It lost money in seven of those years.
- VWO is 7.3% below its all-time high.
The fund
- Issuer
- Vanguard
- Began trading
- March 2005
- Expense ratio
- 0.06%per year
- Assets
- $165B
- Category
- International
Returns
- Past 1 year
- +6.7%total return
- Past 3 years
- +63.5%+17.8% a year
- Past 5 years
- +27.4%+5.0% a year
- Past 10 years
- +95.9%+7.0% a year
- Best calendar year
- +76.3%2009
- Worst calendar year
- −52.5%2008
- Losing years
- 7 of 20full calendar years
Risk
- Volatility
- 17.5%typical yearly swing, 5 years
- Sharpe ratio
- 0.36return per unit of risk, 5 years
- Worst decline ever
- −67.7%Oct 2007 to Nov 2008
- From its all-time high
- −7.3%below the peak
VWO against the whole market
Where VWO ranks among every stock and fund, and what across the market has done better.
How does VWO rank among all ETFs?
This section ranks VWO on return, volatility, risk-adjusted return and worst decline against every ETF worth at least $100 million with enough history. Where the comparisons with its popular alternatives show how VWO stacks up against its peers, these rankings show where it stands in the market as a whole.
- VWO lands in the broad middle of the market on every measure here. VWO's worst decline of the past 10 years ranks in the top 43% of the 951 ETFs with at least $100 million in assets, where the top fell the least.
Ranked against U.S.-listed ETFs with at least $100M in assets that have enough history for each measure, so the count changes from row to row; smaller ETFs and leveraged funds are left out. Lower volatility and smaller declines rank higher.
| Measure | VWO | Rank | Standing |
|---|---|---|---|
| 1-year return | +6.7% | 1,502 of 2,488 | bottom 41% |
| 3-year return | +63.5% | 937 of 1,950 | top 48% |
| 5-year return | +27.4% | 1,032 of 1,563 | bottom 35% |
| 10-year return | +95.9% | 660 of 958 | bottom 32% |
| Volatility, 5 years | 17.5% | 912 of 1,563 | bottom 43% |
| Sharpe ratio, 5 years | 0.36 | 1,146 of 1,563 | bottom 28% |
| Worst decline, past 10 years | −36.4% | 411 of 951 | top 43% |
What has beaten VWO on both return and risk?
Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer). VWO sits where the dashed lines cross. Anything in the green box above and to the left earned more than VWO with smaller swings, a better trade-off over this period on both counts. Past results are no promise, but a name in the box is worth a closer look.
- Four stocks and 230 ETFs worth at least $500 million sit in the green region: each earned more than VWO over the past 5 years with smaller price swings. That is 6% of the 3,641 screened.
- Among those with at least half VWO's swings, LVHI has the best return for its risk: 16.9% a year at 11.1% volatility, 37% less than VWO's 17.5%, and a Sharpe ratio (return above cash per unit of volatility) of 1.48 against 0.36 for VWO.
- Among VWO's popular alternatives, DEM, VXUS and DGS are in the region. DEM earned 9.6% a year against 5.0% a year for VWO, at 15.5% volatility, 11% less than VWO's 17.5%.
Annual return is the annualized total return with dividends reinvested, and volatility the annualized swing in daily prices, both over 5 years. Labeled dots are the strongest picks from the table below and the names called out above, colored by how close they sit to VWO; faint dots are 89 more of the 234 in the green region (the strongest, one per fund family). 3,641 stocks and funds worth at least $500 million were screened. Hover over a dot for its figures.
- Popular alternatives
- Same and neighboring categories, and shared themes
- The whole market
- Others in the green region
Is there a better investment than VWO?
Investments that beat VWO over the past 5 years on return, volatility, drawdowns, consistency, crash losses or fees, from its popular alternatives out to the whole market.
- Among VWO's popular alternatives, VXUS, DEM and DGS earned more than VWO with less volatility over the past 5 years. VXUS returned 8.0% a year at 16.4% volatility, against 5.0% a year at 17.5%.
- Looking beyond its popular alternatives, EFAV (international equity) and DFIV (international large-cap value) earned more than VWO with less volatility over the past 5 years. EFAV returned 7.7% a year at 11.9% volatility, against 5.0% a year at 17.5%.
- Across the whole market, 234 of the 3,641 stocks and funds worth at least $500 million earned more than VWO with less volatility over the past 5 years, among them VXUS, VTV and VIG.
How this works
The table below lists investments that beat VWO over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes, and, for funds, the same exposure at a lower expense ratio. It checks VWO's popular alternatives first, then the rest of its own and neighboring categories, then every stock and fund worth at least $500 million, and shows the strongest few in each group. The full list of those with a higher return and lower volatility than VWO follows the table.
Annual return is the annualized total return with dividends reinvested. Annual return, volatility and the Sharpe ratio cover 5 years; the worst decline covers the past 10 years. Green marks a better figure than VWO's. "On the frontier" means no other option shown or tested earned more with less volatility. Funds that hold the same thing are shown once. Beyond the popular alternatives, nothing with more than 1.5× VWO's volatility counts as better.
These figures cover the past 5 years. Green marks a better figure than VWO's.
| Investment | Why it is better | Past 5 years | Downside | Long run | Fit | ||||
|---|---|---|---|---|---|---|---|---|---|
| Annual return?higher is better | Volatility?lower is calmer | Sharpe?return per unit of risk | Worst decline?past 10 years | 10Y returntotal | Corr. with VWO?lower diversifies more | Expenseper year | |||
| VWOVanguard FTSE Emerging Markets ETF · this page | +5.0% | 17.5% | 0.36 | −36.4% | +95.9% | 1.00 | 0.06% | ||
 SPYState Street SPDR S&P 500 ETF · S&P 500 | +12.5% | 17.2% | 0.78 | −33.7% | +316% | 0.63 | 0.09% | ||
| Popular alternativesbest 6 shownThe investments people most often weigh against VWO. 20 of 24 passed at least one test. | |||||||||
 VXUSVanguard Total International Stock ETF · International Equity | Higher return, lower volatilityHigher return in most periods | +8.0% | 16.4% | 0.56 | −36.0% | +137% | 0.88 | 0.05% | |
DEMWisdomTree Emerging Markets High Dividend Fund · International Equity | Higher return, lower volatilityHigher return in most periods | +9.6% | 15.5% | 0.67 | −37.8% | +128% | 0.89 | 0.63% | |
DGSWisdomTree Emerging Markets SmallCap Dividend Fund · Emerging Markets Equity | Higher return, lower volatilityHigher return in most periods | +7.2% | 15.4% | 0.53 | −44.1% | +114% | 0.88 | 0.58% | |
 SPYMState Street SPDR Portfolio S&P 500 ETF · US Large-Cap Equity | Higher return, similar volatilityHigher return in most periods | +12.6% | 16.9% | 0.79 | −33.9% | +320% | 0.63 | 0.02% | |
 VEAVanguard FTSE Developed Markets ETF · Developed International Equity | Higher return, similar volatilityHigher return in most periods | +9.1% | 16.9% | 0.60 | −35.8% | +152% | 0.81 | 0.03% | |
EEMViShares MSCI Emerging Markets Min Vol Factor ETF · Emerging Markets Equity | Similar return, lower volatility | +5.0% | 12.9% | 0.45 | −31.6% | +71.9% | 0.88 | 0.25% | |
| Same and neighboring categories, and shared themesbest 6 shownEverything else in Emerging Markets Equity and International Equity and the categories next to it (Developed International Equity, Emerging Market Bonds, China Equity, International Dividend Equity), plus VWO's specific themes. 157 of 219 passed at least one test. | |||||||||
EFAViShares MSCI EAFE Min Vol Factor ETF · International Equity | Higher return, lower volatilityHigher Sharpe, smaller worst declineHigher return in most periodsSmaller losses in recent crashes | +7.7% | 11.9% | 0.69 | −27.6% | +100% | 0.64 | 0.20% | |
DFIVDimensional - International Value ETF · International Large-Cap Value | Higher return, lower volatilityHigher Sharpe, smaller worst declineHigher return in most periods | +14.8% | 16.4% | 0.93 | −25.4% | — | 0.72 | 0.27% | |
DIVIFranklin International Core Dividend Tilt Index ETF · International Dividend Equity | Higher return, lower volatilityHigher Sharpe, smaller worst declineHigher return in most periods | +13.3% | 15.5% | 0.89 | −27.7% | +182% | 0.78 | 0.09% | |
SCHYSchwab International Dividend Equity ETF · International Dividend Equity | Higher return, lower volatilityHigher Sharpe, smaller worst declineHigher return in most periods | +9.5% | 13.3% | 0.76 | −24.0% | — | 0.71 | 0.08% | |
IDMOInvesco S&P International Developed Momentum ETF · International Equity | Higher return, similar volatilityHigher Sharpe, smaller worst declineHigher return in most periods | +12.8% | 18.3% | 0.76 | −31.3% | +224% | 0.66 | 0.25% | |
EMHYiShares J.P. Morgan EM High Yield Bond ETF · Emerging Market Bonds | Similar return, lower volatilityHigher Sharpe, smaller worst decline | +4.4% | 9.1% | 0.52 | −30.1% | +43.6% | 0.81 | 0.50% | |
| The whole marketbest 8 shownEvery other stock and fund worth at least $500 million. 686 of 3,466 passed at least one test. | |||||||||
CHTChunghwa Telecom Co., Ltd. · Integrated Telecommunications | Higher return, lower volatilityHigher Sharpe, smaller worst declineHigher return in most periodsSmaller losses in recent crashes | +8.2% | 13.3% | 0.66 | −23.8% | +104% | 0.50 | — | |
PTLCPacer Trendpilot US Large Cap ETF · Tactical Equity | Higher return, lower volatilityHigher Sharpe, smaller worst declineHigher return in most periodsSmaller losses in recent crashes | +9.3% | 11.9% | 0.81 | −26.6% | +185% | 0.49 | 0.60% | |
ACWViShares MSCI Global Min Vol Factor ETF · Global Equity | Higher return, lower volatilityHigher Sharpe, smaller worst declineHigher return in most periodsSmaller losses in recent crashes | +6.4% | 10.3% | 0.66 | −28.8% | +119% | 0.60 | 0.20% | |
 XLVState Street Health Care Select Sector SPDR ETF · Health Care Equity | Higher return, lower volatilityHigher Sharpe, smaller worst declineHigher return in most periods | +8.4% | 15.3% | 0.60 | −28.4% | +208% | 0.32 | 0.08% | |
XLPState Street Consumer Staples Select Sector SPDR ETF · Consumer Staples | Higher return, lower volatilityHigher Sharpe, smaller worst declineHigher return in most periods | +7.6% | 13.8% | 0.60 | −24.5% | +124% | 0.45 | 0.08% | |
 BRK-ABerkshire Hathaway Inc. · Insurance | Higher return, similar volatilityHigher Sharpe, smaller worst declineHigher return in most periods | +13.5% | 17.2% | 0.83 | −30.4% | +281% | 0.20 | — | |
AEEAmeren Corporation · Electric Utilities | Higher Sharpe, smaller worst declineHigher return in most periodsSmaller losses in recent crashes | +8.2% | 19.4% | 0.50 | −29.1% | +199% | 0.45 | — | |
JAAAJanus Henderson AAA CLO ETF · AAA CLO Debt | On the frontierSimilar return, lower volatilityHigher Sharpe, smaller worst decline | +5.1% | 1.7% | 2.98 | −2.6% | — | 0.42 | 0.20% | |
What these numbers mean for VWO
- Annual return
- VWO returned 5.0% a year over the past 5 years with dividends reinvested, against 12.5% a year for the S&P 500. At that pace, $10,000 became about $12,700. Annual return is the steady yearly rate that would produce the same total result, so investments held over the same span compare fairly. Guide: What is performance and return? →
- Volatility
- VWO's volatility over the past 5 years was 17.5%, 1.0 times the S&P 500's 17.2%. Volatility measures how widely returns swing around their average: in roughly two years out of three, VWO's return lands within 17.5% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump. Guide: Understanding and measuring risk (volatility) →
- Sharpe ratio
- VWO's Sharpe ratio over the past 5 years was 0.36, against 0.78 for the S&P 500, so VWO earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings. Guide: Balancing reward with risk (Sharpe ratio) →
- Worst decline
- VWO's worst fall from a peak to a low over the past 10 years was 36.4%, against 33.7% for the S&P 500. Losses and gains are not symmetric: climbing back from a 36.4% fall takes a 57.2% gain. Guide: Market crash risk and tail risk →
- Correlation
- Over the past 5 years, VWO's monthly returns had a correlation of 0.63 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They often move together: some diversification next to an index fund, but not a cushion. In the table, the correlation column measures each option against VWO instead: the lower it is, the more that option would diversify a VWO holding. Guide: Correlation and diversification →
Show all 234 stocks and funds worth at least $500 million that earned more than VWO with less volatility
Out of 3,641 tested over 5 years. The strongest 100 are listed, best first, with funds that hold the same thing listed once.
| # | Investment | Found in | Annual return | Volatility | Sharpe | Worst decline | 10Y return | Corr. with VWO | Expense |
|---|---|---|---|---|---|---|---|---|---|
| 1 | CHTChunghwa Telecom Co., Ltd. · Integrated Telecommunications | Whole market | +8.2% | 13.3% | 0.66 | −23.8% | +104% | 0.50 | — |
| 2 | PTLCPacer Trendpilot US Large Cap ETF · Tactical Equity | Whole market | +9.3% | 11.9% | 0.81 | −26.6% | +185% | 0.49 | 0.60% |
| 3 | ACWViShares MSCI Global Min Vol Factor ETF · Global Equity | Whole market | +6.4% | 10.3% | 0.66 | −28.8% | +119% | 0.60 | 0.20% |
| 4 | EFAViShares MSCI EAFE Min Vol Factor ETF · International Equity | Same or nearby category | +7.7% | 11.9% | 0.69 | −27.6% | +100% | 0.64 | 0.20% |
| 5 | XLVState Street Health Care Select Sector SPDR ETF · Health Care Equity | Whole market | +8.4% | 15.3% | 0.60 | −28.4% | +208% | 0.32 | 0.08% |
| 6 | XLPState Street Consumer Staples Select Sector SPDR ETF · Consumer Staples | Whole market | +7.6% | 13.8% | 0.60 | −24.5% | +124% | 0.45 | 0.08% |
| 7 | JAVAJPMorgan Active Value ETF · US Large-Cap Value | Whole market | +11.4% | 14.5% | 0.82 | −16.5% | — | — | 0.44% |
| 8 | QYLDGlobal X - Nasdaq 100 Covered Call ETF · Covered Call Income | Whole market | +8.2% | 15.0% | 0.60 | −24.7% | +151% | 0.51 | 0.60% |
| 9 | DFIVDimensional - International Value ETF · International Large-Cap Value | Same or nearby category | +14.8% | 16.4% | 0.93 | −25.4% | — | 0.72 | 0.27% |
| 10 | USMCPrincipal U.S. Mega-Cap ETF · US Large-Cap Equity | Whole market | +13.8% | 16.5% | 0.87 | −30.0% | — | 0.59 | 0.12% |
| 11 | FTLSFirst Trust Long/Short Equity ETF · Long-Short Equity | Whole market | +10.1% | 10.5% | 0.97 | −20.6% | +155% | 0.55 | 0.95% |
| 12 | DFAIDimensional - International Core Equity Market ETF · Developed International Equity | Same or nearby category | +9.6% | 16.0% | 0.66 | −27.4% | — | 0.78 | 0.18% |
| 13 | AORiShares Core 60/40 Balanced Allocation ETF · Balanced Allocation | Whole market | +6.4% | 10.7% | 0.64 | −23.0% | +117% | 0.79 | 0.20% |
| 14 | DFAXDimensional World ex U.S. Core Equity 2 ETF · International Equity | Same or nearby category | +9.6% | 16.1% | 0.65 | −28.1% | — | 0.88 | 0.28% |
| 15 | DIVIFranklin International Core Dividend Tilt Index ETF · International Dividend Equity | Same or nearby category | +13.3% | 15.5% | 0.89 | −27.7% | +182% | 0.78 | 0.09% |
| 16 | QDPLPacer Metaurus US Large Cap Dividend Multiplier 400 ETF · US Dividend Equity | Whole market | +11.6% | 15.0% | 0.81 | −22.6% | — | 0.63 | 0.60% |
| 17 | QVMLInvesco S&P 500 QVM Multi-factor ETF · US Multifactor Equity | Whole market | +12.8% | 16.6% | 0.81 | −23.5% | — | 0.63 | 0.11% |
| 18 | SCHYSchwab International Dividend Equity ETF · International Dividend Equity | Same or nearby category | +9.5% | 13.3% | 0.76 | −24.0% | — | 0.71 | 0.08% |
| 19 | PPHVanEck Pharmaceutical ETF · Pharmaceuticals | Whole market | +11.6% | 15.8% | 0.78 | −29.7% | +158% | 0.35 | 0.36% |
| 20 | IHDGWisdomTree International Hedged Quality Dividend Growth Fund · International Dividend Equity | Same or nearby category | +7.4% | 14.9% | 0.56 | −29.2% | +163% | 0.60 | 0.58% |
| 21 | PTNQPacer Trendpilot 100 ETF · Tactical Asset Allocation | Whole market | +9.4% | 14.2% | 0.70 | −28.1% | +292% | 0.53 | 0.65% |
| 22 | FTQIFirst Trust Nasdaq BuyWrite Income ETF · Nasdaq Options Income | Whole market | +11.4% | 14.8% | 0.81 | −19.5% | +118% | 0.56 | 0.75% |
| 23 | SIXAETC 6 Meridian Mega Cap Equity ETF · US Large-Cap Equity | Whole market | +12.9% | 12.7% | 1.02 | −18.4% | — | 0.58 | 0.31% |
| 24 | QEFAState Street SPDR MSCI EAFE StrategicFactors ETF · International Multifactor Equity | Same or nearby category | +8.5% | 14.8% | 0.63 | −30.8% | +143% | 0.76 | 0.30% |
| 25 | VSLUApplied Finance Valuation Large Cap ETF · US Large-Cap Value | Whole market | +13.7% | 16.2% | 0.88 | −23.8% | — | 0.63 | 0.49% |
| 26 | SSUSStrategy Shares Day Hagan Smart Sector ETF · US Large-Cap Equity | Whole market | +10.3% | 15.4% | 0.71 | −23.8% | — | 0.66 | 0.77% |
| 27 | WTPIWisdomTree Equity Premium Income Fund · Equity Income | Whole market | +8.9% | 12.2% | 0.77 | −28.4% | +119% | 0.55 | 0.44% |
| 28 | CDCVictoryShares US EQ Income Enhanced Volatility Wtd ETF · US Dividend Equity | Whole market | +6.5% | 12.6% | 0.56 | −21.4% | +174% | 0.52 | 0.38% |
| 29 |  VIGVanguard Dividend Appreciation ETF · Dividend Growth | Whole market | +10.4% | 14.1% | 0.77 | −31.7% | +258% | 0.60 | 0.04% |
| 30 |  SCHDSchwab U.S. Dividend Equity ETF · US Dividend Equity | Whole market | +10.2% | 14.4% | 0.75 | −33.4% | +256% | 0.53 | 0.06% |
| 31 | BALTInnovator Defined Wealth Shield ETF · US Equity Buffer | Whole market | +6.2% | 3.3% | 1.84 | −4.9% | — | 0.58 | 0.69% |
| 32 |  VTVanguard Total World Stock ETF · Global Equity | Whole market | +10.1% | 16.2% | 0.68 | −34.2% | +220% | 0.77 | 0.06% |
| 33 | FLRTPacer Aristotle Pacific Floating Rate High Income ETF · Bank Loans | Whole market | +6.0% | 2.3% | 2.55 | −20.9% | +58.7% | 0.51 | 0.60% |
| 34 |  RSPInvesco S&P 500 Equal Weight ETF · US Large-Cap Equity | Whole market | +8.4% | 16.1% | 0.58 | −39.0% | +214% | 0.64 | 0.20% |
| 35 | VOEVanguard Morningstar Mid-Cap Value ETF · Mid-Cap Value | Whole market | +9.7% | 15.8% | 0.67 | −43.2% | +185% | 0.61 | 0.05% |
| 36 | HDViShares Core High Dividend ETF · High Dividend Yield | Whole market | +13.3% | 13.0% | 1.03 | −37.0% | +177% | 0.45 | 0.08% |
| 37 | FTSFortis Inc. · Electric Utilities | Whole market | +9.5% | 16.5% | 0.63 | −34.3% | +162% | 0.43 | — |
| 38 | DGRWWisdomTree U.S. Quality Dividend Growth Fund · US Dividend Equity | Whole market | +11.7% | 14.0% | 0.87 | −32.0% | +271% | 0.61 | 0.28% |
| 39 | USMViShares MSCI USA Min Vol Factor ETF · US Low-Volatility Equity | Whole market | +7.7% | 12.3% | 0.66 | −33.1% | +179% | 0.51 | 0.15% |
| 40 | SDYState Street SPDR S&P Dividend ETF · US Dividend Equity | Whole market | +8.1% | 14.0% | 0.63 | −36.7% | +163% | 0.58 | 0.35% |
| 41 | SCHVSchwab U.S. Large-Cap Value ETF · US Large-Cap Value | Whole market | +10.3% | 14.4% | 0.75 | −37.1% | +196% | 0.63 | 0.04% |
| 42 | FDVVFidelity High Dividend ETF · High Dividend Yield | Whole market | +13.4% | 14.6% | 0.94 | −40.2% | +255% | 0.65 | 0.15% |
| 43 | FDLFirst Trust Morningstar Dividend Leaders Index Fund · High Dividend Yield | Whole market | +14.6% | 14.5% | 1.02 | −41.4% | +207% | 0.45 | 0.43% |
| 44 | FJANFT Vest U.S. Equity Buffer ETF - January · US Equity Buffer | Whole market | +11.0% | 10.5% | 1.04 | −13.6% | — | 0.65 | 0.85% |
| 45 | POCTInnovator U.S. Equity Power Buffer ETF · Moderate Buffer | Whole market | +9.9% | 8.0% | 1.22 | −18.8% | — | 0.59 | 0.79% |
| 46 | JQUAJPMorgan U.S. Quality Factor ETF · US Quality Equity | Whole market | +13.5% | 15.7% | 0.89 | −32.9% | — | 0.59 | 0.12% |
| 47 | IGFiShares Global Infrastructure ETF · Infrastructure Equity | Whole market | +9.3% | 13.9% | 0.71 | −42.1% | +115% | 0.66 | 0.37% |
| 48 |  JEPIJPMorgan Equity Premium Income ETF · Covered Call Income | Whole market | +7.3% | 11.0% | 0.70 | −13.7% | — | 0.53 | 0.35% |
| 49 | DOCTFT Vest U.S. Equity Deep Buffer ETF - October · Deep Buffer | Whole market | +8.2% | 7.4% | 1.10 | −9.9% | — | 0.63 | 0.85% |
| 50 | EMLPFirst Trust North American Energy Infrastructure Fund · Energy Infrastructure | Whole market | +15.2% | 14.5% | 1.06 | −43.6% | +155% | 0.42 | 0.95% |
| 51 | VYMIVanguard International High Dividend Yield ETF · International Dividend Equity | Same or nearby category | +13.2% | 14.8% | 0.92 | −40.0% | +174% | 0.79 | 0.07% |
| 52 | FNDFSchwab Fundamental International Large Company Index ETF · International Large-Cap Equity | Same or nearby category | +13.6% | 16.3% | 0.87 | −40.2% | +193% | 0.79 | 0.25% |
| 53 | GCOWPacer Global Cash Cows Dividend ETF · Global Equity | Whole market | +14.4% | 13.6% | 1.06 | −37.6% | +170% | 0.62 | 0.60% |
| 54 | FTCSFirst Trust Capital Strength ETF · US Quality Equity | Whole market | +6.5% | 13.3% | 0.54 | −31.9% | +191% | 0.47 | 0.53% |
| 55 | HYGHiShares Interest Rate Hedged High Yield Bond ETF · High Yield Bonds | Whole market | +6.6% | 7.1% | 0.95 | −23.9% | +73.7% | 0.40 | 1.12% |
| 56 | TXNMTXNM Energy, Inc. · Electric Utilities | Whole market | +7.3% | 14.9% | 0.55 | −46.4% | +152% | 0.24 | — |
| 57 | DBEFXtrackers MSCI EAFE Hedged Equity ETF · International Equity | Same or nearby category | +12.9% | 13.8% | 0.95 | −32.5% | +204% | 0.66 | 0.35% |
| 58 | FTGCFirst Trust Global Tactical Commodity Strategy Fund · Broad Commodities | Whole market | +13.1% | 15.6% | 0.87 | −35.9% | +135% | 0.19 | 0.98% |
| 59 | IDViShares International Select Dividend ETF · International Dividend Equity | Same or nearby category | +12.7% | 15.5% | 0.85 | −42.5% | +159% | 0.73 | 0.50% |
| 60 | BUFRFT Vest Laddered Buffer ETF · Buffered Equity | Whole market | +9.8% | 10.5% | 0.95 | −13.7% | — | 0.65 | 0.10% |
| 61 | FTHIFirst Trust BuyWrite Income ETF · Covered Call Income | Whole market | +10.0% | 13.3% | 0.79 | −32.6% | +124% | 0.56 | 0.75% |
| 62 | PWVInvesco Large Cap Value ETF · US Large-Cap Value | Whole market | +13.7% | 14.2% | 0.98 | −37.6% | +226% | 0.52 | 0.55% |
| 63 | NULVNuveen ESG Large-Cap Value · US Large-Cap Value | Whole market | +9.4% | 14.2% | 0.70 | −37.0% | — | 0.63 | 0.26% |
| 64 | DSTLDistillate U.S. Fundamental Stability & Value ETF · US Large-Cap Value | Whole market | +11.7% | 16.2% | 0.77 | −33.1% | — | 0.56 | 0.39% |
| 65 | DIVOAmplify CWP Enhanced Dividend Income ETF · Covered Call Income | Whole market | +10.9% | 11.9% | 0.94 | −30.0% | — | 0.51 | 0.56% |
| 66 | DHSWisdomTree U.S. High Dividend Fund · High Dividend Yield | Whole market | +12.4% | 13.9% | 0.91 | −37.4% | +159% | 0.48 | 0.38% |
| 67 | FNDBSchwab Fundamental U.S. Broad Market Index ETF · US Total Market | Whole market | +13.1% | 15.1% | 0.90 | −38.1% | +285% | 0.63 | 0.25% |
| 68 | FGDFirst Trust Dow Jones Global Select Dividend Index Fund · Global Equity | Whole market | +11.7% | 14.8% | 0.82 | −44.8% | +155% | 0.75 | 0.55% |
| 69 | QUSState Street SPDR MSCI USA StrategicFactors ETF · US Multifactor Equity | Whole market | +11.1% | 14.2% | 0.81 | −33.8% | +276% | 0.62 | 0.15% |
| 70 | HFXINYLI FTSE International Equity Currency Neutral ETF · International Large-Cap Equity | Same or nearby category | +11.2% | 15.3% | 0.78 | −32.4% | +178% | 0.77 | 0.19% |
| 71 | RLYState Street Multi-Asset Real Return ETF · Inflation Protection | Whole market | +10.0% | 13.3% | 0.79 | −34.2% | +128% | 0.56 | 0.50% |
| 72 | FVALFidelity Value Factor ETF · US Large-Cap Value | Whole market | +12.6% | 16.4% | 0.81 | −37.3% | +290% | 0.64 | 0.15% |
| 73 | RAAXVanEck Real Assets ETF · Real Assets | Whole market | +11.5% | 15.7% | 0.78 | −33.9% | — | 0.59 | 0.55% |
| 74 | DEMWisdomTree Emerging Markets High Dividend Fund · International Equity | Popular alternative | +9.6% | 15.5% | 0.67 | −37.8% | +128% | 0.89 | 0.63% |
| 75 | RODMHartford Multifactor Developed Markets (ex-US) ETF · Developed International Equity | Same or nearby category | +10.6% | 13.5% | 0.82 | −36.0% | +142% | 0.74 | 0.29% |
| 76 | FDLOFidelity Low Volatility Factor ETF · US Low-Volatility Equity | Whole market | +9.7% | 13.0% | 0.78 | −34.4% | +249% | 0.55 | 0.15% |
| 77 | SDOGALPS Sector Dividend Dogs ETF · US Dividend Equity | Whole market | +10.9% | 15.3% | 0.76 | −43.6% | +164% | 0.59 | 0.36% |
| 78 | AUSFGlobal X - Adaptive U.S. Factor ETF · US Multifactor Equity | Whole market | +13.6% | 13.6% | 1.01 | −44.2% | — | 0.42 | 0.27% |
| 79 | FTAFirst Trust Large Cap Value AlphaDEX Fund · US Large-Cap Value | Whole market | +10.8% | 16.2% | 0.72 | −45.0% | +195% | 0.58 | 0.58% |
| 80 | FNDCSchwab Fundamental International Small Company Index ETF · International Small-Cap Equity | Same or nearby category | +7.6% | 16.0% | 0.54 | −43.2% | +120% | 0.81 | 0.39% |
| 81 | EDIVState Street SPDR S&P Emerging Markets Dividend ETF · International Equity | Same or nearby category | +11.1% | 13.8% | 0.83 | −40.7% | +117% | 0.87 | 0.49% |
| 82 | DBMFiMGP DBi Managed Futures Strategy ETF · Managed Futures | Whole market | +9.5% | 12.4% | 0.80 | −20.4% | — | -0.28 | 0.85% |
| 83 | REGLProShares - S&P MidCap 400 Dividend Aristocrats ETF · US Dividend Equity | Whole market | +7.4% | 16.0% | 0.53 | −36.4% | +150% | 0.50 | 0.40% |
| 84 | FYLDCambria Foreign Shareholder Yield ETF · International Dividend Equity | Same or nearby category | +13.1% | 16.0% | 0.86 | −44.6% | +203% | 0.73 | 0.59% |
| 85 | LGLVState Street SPDR US Large Cap Low Volatility Index ETF · US Low-Volatility Equity | Whole market | +7.8% | 13.0% | 0.64 | −36.6% | +205% | 0.50 | 0.12% |
| 86 | DBEUXtrackers MSCI Europe Hedged Equity ETF · European Equity | Same or nearby category | +11.0% | 14.4% | 0.80 | −34.5% | +177% | 0.61 | 0.46% |
| 87 | FLGBFranklin FTSE United Kingdom ETF · International Equity | Same or nearby category | +11.8% | 16.6% | 0.76 | −42.6% | — | 0.71 | 0.09% |
| 88 | DGTState Street SPDR Global Dow ETF · Global Equity | Whole market | +13.9% | 15.1% | 0.95 | −34.4% | +260% | 0.77 | 0.50% |
| 89 | DGSWisdomTree Emerging Markets SmallCap Dividend Fund · Emerging Markets Equity | Popular alternative | +7.2% | 15.4% | 0.53 | −44.1% | +114% | 0.88 | 0.58% |
| 90 | IMFLInvesco International Developed Dynamic Multifactor ETF · International Multifactor Equity | Same or nearby category | +8.5% | 16.2% | 0.59 | −33.3% | — | 0.73 | 0.34% |
| 91 | PEYInvesco High Yield Equity Dividend Achievers ETF · Dividend Growth | Whole market | +8.1% | 16.5% | 0.56 | −41.5% | +141% | 0.47 | 0.68% |
| 92 | PIDInvesco International Dividend Achievers ETF · International Dividend Equity | Same or nearby category | +8.0% | 13.9% | 0.62 | −46.1% | +127% | 0.65 | 0.53% |
| 93 | DJDInvesco Dow Jones Industrial Average Dividend ETF · High Dividend Yield | Whole market | +12.5% | 13.3% | 0.95 | −34.7% | +233% | 0.53 | 0.07% |
| 94 | PJPInvesco Pharmaceuticals ETF · Pharmaceuticals | Whole market | +11.3% | 16.6% | 0.73 | −34.0% | +139% | 0.32 | 0.58% |
| 95 | ACIOAptus Collared Income Opportunity ETF · Hedged Equity | Whole market | +9.1% | 11.2% | 0.84 | −14.2% | — | 0.60 | 0.79% |
| 96 | XMLVInvesco S&P MidCap Low Volatility ETF · US Mid-Cap Equity | Whole market | +6.1% | 14.4% | 0.48 | −39.9% | +115% | 0.50 | 0.25% |
| 97 | FJUNFT Vest U.S. Equity Buffer ETF - June · S&P 500 Buffer | Whole market | +10.4% | 10.6% | 0.99 | −13.3% | — | 0.63 | 0.85% |
| 98 | PJUNInnovator U.S. Equity Power Buffer ETF - June · S&P 500 Buffer | Whole market | +6.8% | 8.3% | 0.83 | −16.3% | — | 0.61 | 0.79% |
| 99 | FLSPFranklin Systematic Style Premia ETF · Liquid Alternatives | Whole market | +8.6% | 13.4% | 0.69 | −22.9% | — | -0.12 | 0.65% |
| 100 | SIXHETC 6 Meridian Hedged Equity Index Option ETF · Hedged Equity | Whole market | +10.3% | 10.3% | 1.01 | −11.7% | — | 0.31 | 0.31% |
VWO against its popular alternatives
The investments people most often weigh against VWO, compared period by period and year by year.
How do VWO's risk and return compare with its alternatives?
This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings. Investments toward the upper left earned more for a smoother ride, and those toward the lower right earned less for a rougher one. The dashed lines cross at VWO, which divides the map into what did better or worse on each measure.
- Ten of the 23 popular alternatives, led by FNDE, DEM and VEA, were both more rewarding and calmer than VWO over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, VWO returned 5.0% a year, less than the S&P 500's 12.5%, with higher volatility (17.5% against 17.2%).
Green points earned more than VWO with less volatility; red points earned less with more. Hover over a point for its figures. Total returns with dividends reinvested, annualized.
All figures
| Investment | Annual return | Volatility |
|---|---|---|
| SPY S&P 500State Street SPDR S&P 500 ETF | +12.5% | 17.2% |
| EWW iShares MSCI Mexico ETF | +12.2% | 22.6% |
| EMXC iShares MSCI Emerging Markets ex China ETF | +10.9% | 19.5% |
| XCEM Columbia EM Core ex-China ETF | +10.3% | 19.5% |
| FNDE Schwab Fundamental Emerging Markets Large Company Index ETF | +9.8% | 17.0% |
| DEM WisdomTree Emerging Markets High Dividend Fund | +9.6% | 15.5% |
| VEA Vanguard FTSE Developed Markets ETF | +9.1% | 16.9% |
| AVEM Avantis Emerging Markets Equity ETF | +9.0% | 19.5% |
| EMGF iShares Emerging Markets Equity Factor ETF | +8.7% | 18.8% |
| PIE Invesco Dorsey Wright Emerging Markets Momentum ETF | +8.2% | 21.5% |
| VXUS Vanguard Total International Stock ETF | +8.0% | 16.4% |
| DFAE Dimensional - Emerging Core Equity Market ETF | +8.0% | 18.9% |
| DGS WisdomTree Emerging Markets SmallCap Dividend Fund | +7.2% | 15.4% |
| GEM Goldman Sachs ActiveBeta Emerging Markets Equity ETF | +7.0% | 18.9% |
| EELV Invesco S&P Emerging Markets Low Volatility ETF | +6.7% | 11.4% |
| JPEM JPMorgan Diversified Return Emerging Markets Equity ETF | +6.5% | 13.5% |
| IEMG iShares Core MSCI Emerging Markets ETF | +6.5% | 19.5% |
| EEM iShares MSCI Emerging Markets ETF | +5.9% | 20.0% |
| EEMS iShares MSCI Emerging Markets Small-Cap ETF | +5.8% | 16.9% |
| SPEM State Street SPDR Portfolio Emerging Markets ETF | +5.6% | 17.3% |
| SCHE Schwab Emerging Markets Equity ETF | +5.1% | 17.8% |
| EEMV iShares MSCI Emerging Markets Min Vol Factor ETF | +5.0% | 12.9% |
| VWO This pageVanguard FTSE Emerging Markets ETF | +5.0% | 17.5% |
| EMB iShares J.P. Morgan USD Emerging Markets Bond ETF | +1.5% | 9.8% |
| EMQQ EMQQ The Emerging Markets Internet ETF | −9.9% | 32.2% |
Has VWO consistently beaten its popular alternatives?
This section compares VWO with the investments people most often weigh against it, checking each one over eight periods from one month to ten years. Counting how often an alternative earned more than VWO helps separate lasting outperformance from a single strong stretch.
- 17 of the 25 popular alternatives, led by SPYM, VEA and FNDE, outperformed VWO in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- SPYM, VEA and FNDE outperformed VWO in every long-term period and in all but one short-term period, the most consistent record in the group.
- SPYM, EELV and VEA earned more for the risk they took than VWO (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.
A green cell means the alternative earned more than VWO over that period. "Qualified" marks those that did so in at least 3 of 5 short-term periods and 2 of 3 long-term periods.
| Investment | Periods outperformed | Short term | Long term | Risk · 5 years | Fund | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1M | 3M | 6M | YTD | 1Y | 3Y | 5Y | 10Y | Volatilitylower is calmer | Sharpehigher is better | Worst declinepast 10 years | Expense | Assets | Overlapsame sectors | ||
| VWO Vanguard FTSE Emerging Markets ETF (this page) | — | −7.0% | −3.2% | −3.0% | +3.8% | +6.7% | +63.5% | +27.4% | +95.9% | 17.5% | 0.36 | −36.4% | 0.06% | $165B | — |
| SPYM QualifiedState Street SPDR Portfolio S&P 500 ETF | 5/5 short3/3 longAll-weather | −1.2% | +2.5% | +8.0% | +12.8% | +15.7% | +88.8% | +80.9% | +320% | 16.9% | 0.79 | −33.9% | 0.02% | $184B | 81% |
| VEA QualifiedVanguard FTSE Developed Markets ETF | 5/5 short3/3 longAll-weather | −4.7% | −1.5% | +2.1% | +10.6% | +17.1% | +79.6% | +54.8% | +152% | 16.9% | 0.60 | −35.8% | 0.03% | $314B | 72% |
| FNDE QualifiedSchwab Fundamental Emerging Markets Large Company Index ETF | 5/5 short3/3 longAll-weather | −3.0% | +1.8% | +3.3% | +13.7% | +19.5% | +87.7% | +59.4% | +144% | 17.0% | 0.64 | −39.9% | 0.39% | $10B | 73% |
| VXUS QualifiedVanguard Total International Stock ETF | 5/5 short3/3 longAll-weather | −5.4% | −1.9% | +0.8% | +8.9% | +14.3% | +75.1% | +47.2% | +137% | 16.4% | 0.56 | −36.0% | 0.05% | $666B | 78% |
| DEM QualifiedWisdomTree Emerging Markets High Dividend Fund | 5/5 short3/3 longAll-weather | −4.6% | +1.5% | +5.4% | +17.6% | +21.8% | +68.2% | +58.0% | +128% | 15.5% | 0.67 | −37.8% | 0.63% | $4.2B | 74% |
| PIE QualifiedInvesco Dorsey Wright Emerging Markets Momentum ETF | 4/5 short3/3 longAll-weather | −6.9% | +0.8% | +6.9% | +35.7% | +39.5% | +93.9% | +48.4% | +145% | 21.5% | 0.48 | −40.4% | 0.90% | $271M | 75% |
| XCEM QualifiedColumbia EM Core ex-China ETF | 3/5 short3/3 long | −10.6% | −3.4% | +1.8% | +20.8% | +29.5% | +91.6% | +63.1% | +160% | 19.5% | 0.60 | −40.9% | 0.16% | $2.0B | 79% |
| EMGF QualifiediShares Emerging Markets Equity Factor ETF | 3/5 short3/3 long | −10.5% | −4.5% | −1.1% | +12.6% | +17.7% | +87.6% | +51.6% | +134% | 18.8% | 0.54 | −40.2% | 0.26% | $1.8B | 88% |
| IEMG QualifiediShares Core MSCI Emerging Markets ETF | 3/5 short3/3 long | −10.1% | −4.5% | −2.4% | +10.2% | +15.4% | +78.9% | +37.0% | +115% | 19.5% | 0.42 | −38.7% | 0.09% | $151B | 89% |
| SPEM QualifiedState Street SPDR Portfolio Emerging Markets ETF | 3/5 short3/3 long | −7.0% | −2.8% | −1.7% | +5.0% | +8.2% | +66.8% | +31.3% | +108% | 17.3% | 0.40 | −36.1% | 0.07% | $17B | 90% |
| GEM QualifiedGoldman Sachs ActiveBeta Emerging Markets Equity ETF | 3/5 short3/3 long | −10.3% | −4.6% | −1.4% | +11.1% | +16.6% | +80.1% | +40.1% | +107% | 18.9% | 0.45 | −37.0% | 0.59% | $1.7B | 85% |
| EEM QualifiediShares MSCI Emerging Markets ETF | 3/5 short3/3 long | −10.7% | −5.0% | −2.1% | +10.3% | +16.0% | +80.4% | +33.4% | +104% | 20.0% | 0.39 | −39.8% | 0.72% | $29B | 80% |
| DGS QualifiedWisdomTree Emerging Markets SmallCap Dividend Fund | 4/5 short2/3 long | −4.6% | −1.0% | −3.0% | +9.0% | +11.8% | +53.9% | +41.7% | +114% | 15.4% | 0.53 | −44.1% | 0.58% | $1.7B | — |
| EEMS QualifiediShares MSCI Emerging Markets Small-Cap ETF | 3/5 short2/3 long | −6.7% | −1.1% | −6.4% | +5.5% | +8.1% | +49.2% | +32.8% | +111% | 16.9% | 0.42 | −48.9% | 0.72% | $374M | 74% |
| AVEM QualifiedAvantis Emerging Markets Equity ETF | 3/5 short2/3 long | −9.8% | −4.1% | −1.7% | +12.1% | +17.7% | +86.3% | +53.6% | — | 19.5% | 0.54 | −36.0% | 0.33% | $27B | 90% |
| DFAE QualifiedDimensional - Emerging Core Equity Market ETF | 3/5 short2/3 long | −9.8% | −3.7% | −2.1% | +10.9% | +16.1% | +78.9% | +46.7% | — | 18.9% | 0.50 | −32.2% | 0.29% | $9.6B | 90% |
| EMXC QualifiediShares MSCI Emerging Markets ex China ETF | 3/5 short2/3 long | −11.1% | −3.6% | +2.2% | +23.2% | +32.1% | +102% | +68.0% | — | 19.5% | 0.63 | −42.8% | 0.25% | $24B | 81% |
| JPEM InternationalJPMorgan Diversified Return Emerging Markets Equity ETF | 5/5 short1/3 long | −3.6% | −0.5% | −1.5% | +6.2% | +11.5% | +52.4% | +37.2% | +88.5% | 13.5% | 0.54 | −40.2% | 0.44% | $379M | — |
| EELV InternationalInvesco S&P Emerging Markets Low Volatility ETF | 5/5 short1/3 long | −1.9% | +0.1% | −1.0% | +5.5% | +9.4% | +46.7% | +38.2% | +85.4% | 11.4% | 0.63 | −36.4% | 0.29% | $394M | 53% |
| EWW InternationaliShares MSCI Mexico ETF | 4/5 short1/3 long | +0.7% | −2.3% | −2.9% | +9.2% | +18.3% | +56.2% | +78.0% | +87.0% | 22.6% | 0.63 | −53.6% | 0.50% | $1.5B | 43% |
| SCHE InternationalSchwab Emerging Markets Equity ETF | 2/5 short1/3 long | −6.8% | −2.9% | −1.9% | +4.4% | +7.1% | +65.9% | +28.1% | +97.3% | 17.8% | 0.37 | −36.2% | 0.06% | $13B | 91% |
| DFEM InternationalDimensional - Emerging Markets Core Equity 2 ETF | 2/5 short1/3 long | −9.0% | −3.1% | −2.5% | +11.3% | +16.2% | +76.8% | — | — | — | — | −20.8% | 0.39% | $9.3B | 89% |
| EEMV InternationaliShares MSCI Emerging Markets Min Vol Factor ETF | 4/5 short0/3 long | −6.6% | −1.2% | +2.8% | +11.5% | +12.7% | +52.2% | +27.6% | +71.9% | 12.9% | 0.45 | −31.6% | 0.25% | $3.5B | 80% |
| EMB BondsiShares J.P. Morgan USD Emerging Markets Bond ETF | 2/5 short0/3 long | −1.5% | −2.5% | −2.6% | −1.2% | +0.2% | +32.8% | +7.5% | +26.8% | 9.8% | 0.20 | −28.7% | 0.39% | $13B | — |
| EMQQ InternationalEMQQ The Emerging Markets Internet ETF | 1/5 short0/3 long | −6.0% | −6.7% | −12.3% | −26.4% | −29.1% | +13.6% | −40.5% | +22.7% | 32.2% | -0.17 | −73.2% | 0.86% | $239M | 40% |
How did VWO do year by year?
This table shows each investment's total return in every full calendar year since 2006, along with where VWO ranked among its popular alternatives each year. Annual results reveal how consistently each one kept pace with VWO and how far its good and bad years diverged, detail that multiyear averages tend to smooth over.
Note: VWO began trading on March 10, 2005, so the table starts with 2006, its first full calendar year, and cannot show how it fared during the dot-com bust.
- VWO finished ahead of the S&P 500 in seven of its 20 full calendar years.
- Among its popular alternatives, XCEM came out ahead of VWO most often, in six of the ten years both traded.
- Ranked against its popular alternatives each year, VWO finished in the top quarter in five of 18 years and in the bottom quarter in three. In 2025, it ranked 17 of 25.
Newest year first. Green marks a year in which the fund came out ahead of VWO; gray means the two finished within a fraction of a point. The rank row places VWO among the alternatives that traded the full year; dark green is the top quarter and red the bottom quarter.
| Investment | Years ahead of VWO | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| VWO This pageVanguard FTSE Emerging Markets ETF | — | +25.6% | +10.6% | +9.3% | −18.0% | +1.3% | +15.2% | +20.8% | −14.8% | +31.5% | +12.2% | −15.8% | 0.0% | −4.9% | +19.2% | −18.8% | +19.5% | +76.3% | −52.5% | +37.3% | +29.3% |
| Rank among alternatives | Top quarter in 5 of 18 | 17 of 25 | 5 of 25 | 20 of 25 | 15 of 24 | 18 of 24 | 6 of 23 | 6 of 22 | 15 of 22 | 12 of 21 | 7 of 21 | 11 of 17 | 3 of 16 | 13 of 15 | 5 of 13 | 6 of 10 | 5 of 9 | 2 of 9 | 8 of 9 | — | — |
| SPY S&P 500State Street SPDR S&P 500 ETF | 11 of 20 | +17.7% | +24.9% | +26.2% | −18.2% | +28.7% | +18.3% | +31.2% | −4.6% | +21.7% | +12.0% | +1.2% | +13.5% | +32.3% | +16.0% | +1.9% | +15.1% | +26.4% | −36.8% | +5.1% | +15.9% |
| VEA Vanguard FTSE Developed Markets ETF | 9 of 18 | +35.2% | +3.1% | +17.9% | −15.3% | +11.7% | +9.7% | +22.6% | −14.8% | +26.4% | +2.6% | −0.4% | −5.9% | +21.8% | +18.6% | −12.3% | +8.4% | +27.4% | −40.6% | — | — |
| FNDE Schwab Fundamental Emerging Markets Large Company Index ETF | 7 of 12 | +29.5% | +12.1% | +15.0% | −15.6% | +14.4% | −2.8% | +19.8% | −10.3% | +26.8% | +32.5% | −20.1% | −11.6% | — | — | — | — | — | — | — | — |
| VXUS Vanguard Total International Stock ETF | 7 of 14 | +32.3% | +5.1% | +15.9% | −16.1% | +9.0% | +10.7% | +21.7% | −14.4% | +27.5% | +4.8% | −4.2% | −4.7% | +14.6% | +18.6% | — | — | — | — | — | — |
| DEM WisdomTree Emerging Markets High Dividend Fund | 8 of 18 | +20.2% | +4.5% | +20.9% | −10.4% | +9.7% | −5.8% | +19.8% | −7.7% | +24.9% | +22.5% | −21.5% | −13.3% | −7.0% | +15.5% | −10.4% | +24.6% | +58.1% | −34.7% | — | — |
| PIE Invesco Dorsey Wright Emerging Markets Momentum ETF | 9 of 18 | +26.0% | −0.3% | +13.7% | −28.8% | +14.3% | +21.3% | +25.7% | −22.0% | +41.7% | +0.1% | −14.2% | −2.9% | −1.0% | +17.4% | −12.5% | +25.1% | +57.8% | −62.8% | — | — |
| XCEM Columbia EM Core ex-China ETF | 6 of 10 | +34.1% | +0.4% | +20.0% | −17.6% | +7.8% | +9.5% | +19.7% | −11.2% | +33.4% | +14.5% | — | — | — | — | — | — | — | — | — | — |
| EMGF iShares Emerging Markets Equity Factor ETF | 5 of 10 | +31.4% | +9.0% | +10.9% | −16.5% | +6.6% | +10.3% | +21.0% | −19.7% | +42.4% | +8.1% | — | — | — | — | — | — | — | — | — | — |
| IEMG iShares Core MSCI Emerging Markets ETF | 6 of 13 | +32.5% | +6.5% | +11.5% | −20.0% | −0.6% | +17.8% | +17.8% | −14.9% | +37.4% | +10.3% | −14.3% | −3.4% | −2.8% | — | — | — | — | — | — | — |
| SPEM State Street SPDR Portfolio Emerging Markets ETF | 7 of 18 | +25.6% | +11.4% | +10.5% | −17.9% | +1.5% | +14.5% | +19.7% | −13.3% | +34.8% | +11.8% | −15.3% | −0.7% | −1.8% | +18.0% | −19.0% | +18.8% | +72.4% | −49.3% | — | — |
| GEM Goldman Sachs ActiveBeta Emerging Markets Equity ETF | 4 of 10 | +33.4% | +6.7% | +11.8% | −21.3% | −0.2% | +13.3% | +17.8% | −14.3% | +36.4% | +8.8% | — | — | — | — | — | — | — | — | — | — |
| EEM iShares MSCI Emerging Markets ETF | 6 of 20 | +34.0% | +6.5% | +9.0% | −20.5% | −3.6% | +17.1% | +18.3% | −15.3% | +37.3% | +10.8% | −16.2% | −3.9% | −3.7% | +19.1% | −18.8% | +16.5% | +69.0% | −48.9% | +33.3% | +31.3% |
| DGS WisdomTree Emerging Markets SmallCap Dividend Fund | 10 of 18 | +21.1% | +1.1% | +19.1% | −12.4% | +15.3% | +4.1% | +18.9% | −16.5% | +35.8% | +15.4% | −16.3% | −3.6% | −3.5% | +23.5% | −21.2% | +30.1% | +83.2% | −45.9% | — | — |
| EEMS iShares MSCI Emerging Markets Small-Cap ETF | 7 of 14 | +19.8% | +3.1% | +23.1% | −19.1% | +18.1% | +19.5% | +11.3% | −19.0% | +34.8% | +1.4% | −7.1% | −3.0% | +3.0% | +20.7% | — | — | — | — | — | — |
| AVEM Avantis Emerging Markets Equity ETF | 3 of 6 | +34.5% | +7.5% | +15.3% | −18.1% | +5.1% | +14.4% | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| DFAE Dimensional - Emerging Core Equity Market ETF | 3 of 5 | +31.4% | +7.6% | +12.6% | −17.5% | +3.5% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| EMXC iShares MSCI Emerging Markets ex China ETF | 4 of 8 | +35.1% | +2.7% | +19.0% | −19.6% | +8.6% | +12.8% | +15.8% | −13.0% | — | — | — | — | — | — | — | — | — | — | — | — |
| JPEM JPMorgan Diversified Return Emerging Markets Equity ETF | 5 of 10 | +22.9% | +4.2% | +11.0% | −9.0% | +8.1% | −0.4% | +16.2% | −10.5% | +28.8% | +15.0% | — | — | — | — | — | — | — | — | — | — |
| EELV Invesco S&P Emerging Markets Low Volatility ETF | 4 of 13 | +21.9% | +1.8% | +8.8% | −3.9% | +16.2% | −3.9% | +8.9% | −5.4% | +24.9% | +5.3% | −18.9% | −4.9% | −1.8% | — | — | — | — | — | — | — |
| EWW iShares MSCI Mexico ETF | 11 of 20 | +53.6% | −28.2% | +40.3% | +1.2% | +20.3% | −3.0% | +12.7% | −14.6% | +14.5% | −10.3% | −14.3% | −11.6% | −1.6% | +32.8% | −12.0% | +28.0% | +53.9% | −41.1% | +11.4% | +44.9% |
| SCHE Schwab Emerging Markets Equity ETF | 5 of 15 | +26.5% | +10.6% | +8.9% | −17.9% | −0.7% | +14.5% | +20.3% | −13.5% | +32.8% | +13.0% | −16.3% | 0.0% | −4.3% | +18.0% | −19.2% | — | — | — | — | — |
| DFEM Dimensional - Emerging Markets Core Equity 2 ETF | 2 of 3 | +29.5% | +7.6% | +13.9% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| EEMV iShares MSCI Emerging Markets Min Vol Factor ETF | 6 of 14 | +13.4% | +8.0% | +7.7% | −14.0% | +5.1% | +6.9% | +7.8% | −5.8% | +27.2% | +3.3% | −12.0% | −0.1% | −1.3% | +23.0% | — | — | — | — | — | — |
| EMB iShares J.P. Morgan USD Emerging Markets Bond ETF | 6 of 18 | +13.9% | +5.5% | +10.6% | −18.6% | −2.2% | +5.4% | +15.5% | −5.5% | +10.3% | +9.3% | +1.0% | +6.0% | −7.8% | +16.9% | +7.6% | +10.8% | +15.4% | −2.1% | — | — |
| EMQQ EMQQ The Emerging Markets Internet ETF | 5 of 11 | +20.7% | +13.8% | +3.6% | −30.7% | −32.5% | +80.4% | +33.9% | −29.8% | +68.2% | −3.3% | +5.0% | — | — | — | — | — | — | — | — | — |
Risk and diversification
How VWO has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.
What were VWO's worst declines?
A drawdown is the decline from a peak to the lowest point before a new high. This section presents VWO's five deepest drawdowns since it began trading in 2005, alongside the S&P 500's return over the same dates, and how long each took to recover. Together, these figures show how much an investor could have lost and how long it took to get back to even.
Note: VWO began trading on March 10, 2005, so this list cannot include the dot-com bust. The crash tests on this page show how older funds and the S&P 500 fared through those years.
- In all five of VWO's worst declines, the S&P 500 held up better over the same dates.
- Not every decline was the market's doing: VWO fell 34.3% from February 2021 to October 2022, while the S&P 500 slipped only 1.0%.
- The slowest recovery came after VWO fell 67.7% from October 2007 to November 2008; it did not regain that peak until September 2017, nine years later.
Green means VWO fell less than the S&P 500 over the same dates. Based on daily closing prices with dividends reinvested.
| During | VWO fell | S&P 500, same dates | Peak | Low | Time to the low | Back at the peak | Time to recover |
|---|---|---|---|---|---|---|---|
| 2008 financial crisis | −67.7% | −50.2% | Oct 2007 | Nov 2008 | 13 months | Sep 2017 | 8.8 years |
| Late-2018 sell-off | −36.4% | −18.8% | Jan 2018 | Mar 2020 | 2.2 years | Nov 2020 | 8 months |
| 2022 bear market | −34.3% | −1.0% | Feb 2021 | Oct 2022 | 20 months | Jun 2025 | 2.7 years |
| No named crash | −25.9% | −7.6% | May 2006 | Jun 2006 | 1 month | Dec 2006 | 6 months |
| No named crash | −18.1% | −7.7% | Jul 2007 | Aug 2007 | 1 month | Sep 2007 | 1 month |
How did VWO do in stock market crashes?
This section measures how far VWO, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000. A smaller decline means an investment held up better, and comparing results across crashes shows whether that resilience was consistent or a one-off.
Note: VWO began trading on March 10, 2005, so its row reads "Not yet trading" for the dot-com bust. The older alternatives and the S&P 500 show how those crashes played out.
- Among its popular alternatives, EELV held up best, falling less than VWO in all six crashes they both traded through.
- VWO fell less than the S&P 500 in four of the nine crashes it has traded through. The clearest case was the late-2018 sell-off, when VWO fell 11.3% and the S&P 500 fell 19.3%.
Newest crash first. Each figure is the fund's deepest fall within the crash window; green means a smaller fall than VWO.
| Investment | Held up better | 2023 regional bank crisisMar 2023 | 2022 bear marketJan 2022 | Covid crashFeb 2020 | Late-2018 sell-offSep 2018 | February 2018 volatility shockFeb 2018 | 2015 China and oil sell-offAug 2015 | 2011 euro debt crisisJul 2011 | 2010 flash crashMay 2010 | 2008 financial crisisOct 2007 | Dot-com bustMar 2000 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| VWO This pageVanguard FTSE Emerging Markets ETF | — | −2.7% | −27.9% | −30.6% | −11.3% | −6.8% | −23.8% | −27.9% | 0.0% | −67.7% | Not yet trading |
| SPY S&P 500State Street SPDR S&P 500 ETF | 4 of 9 | −3.4% | −24.5% | −33.7% | −19.3% | −6.5% | −12.8% | −17.9% | −1.5% | −55.2% | −47.5% |
| VEA Vanguard FTSE Developed Markets ETF | 4 of 9 | −2.5% | −28.8% | −34.1% | −17.1% | −5.9% | −19.9% | −23.1% | −0.2% | −60.7% | — |
| FNDE Schwab Fundamental Emerging Markets Large Company Index ETF | 1 of 6 | −2.6% | −28.7% | −34.5% | −10.0% | −7.2% | −24.4% | — | — | — | — |
| VXUS Vanguard Total International Stock ETF | 3 of 7 | −2.5% | −28.4% | −33.4% | −15.1% | −6.1% | −20.2% | −24.2% | — | — | — |
| DEM WisdomTree Emerging Markets High Dividend Fund | 6 of 9 | −2.1% | −26.5% | −33.6% | −10.5% | −6.1% | −27.5% | −21.9% | 0.0% | −51.8% | — |
| PIE Invesco Dorsey Wright Emerging Markets Momentum ETF | 1 of 8 | −2.1% | −35.0% | −34.1% | −14.7% | −7.1% | −24.1% | −29.7% | 0.0% | — | — |
| XCEM Columbia EM Core ex-China ETF | 2 of 5 | −2.7% | −29.3% | −37.0% | −9.2% | −5.5% | — | — | — | — | — |
| EMGF iShares Emerging Markets Equity Factor ETF | 1 of 5 | −2.5% | −26.7% | −31.4% | −12.5% | −7.1% | — | — | — | — | — |
| IEMG iShares Core MSCI Emerging Markets ETF | 1 of 6 | −2.6% | −30.4% | −31.7% | −12.0% | −6.7% | −21.6% | — | — | — | — |
| SPEM State Street SPDR Portfolio Emerging Markets ETF | 3 of 9 | −2.8% | −27.8% | −30.5% | −10.7% | −6.7% | −23.4% | −25.9% | 0.0% | −64.4% | — |
| GEM Goldman Sachs ActiveBeta Emerging Markets Equity ETF | 0 of 5 | −2.4% | −30.6% | −30.8% | −11.7% | −7.2% | — | — | — | — | — |
| EEM iShares MSCI Emerging Markets ETF | 2 of 9 | −2.7% | −31.4% | −30.8% | −12.1% | −6.8% | −22.3% | −28.0% | 0.0% | −66.4% | — |
| DGS WisdomTree Emerging Markets SmallCap Dividend Fund | 3 of 8 | −2.2% | −23.7% | −35.0% | −12.6% | −5.9% | −20.7% | −27.8% | 0.0% | — | — |
| EEMS iShares MSCI Emerging Markets Small-Cap ETF | 2 of 6 | −2.7% | −26.0% | −37.4% | −13.6% | −7.2% | −19.0% | — | — | — | — |
| AVEM Avantis Emerging Markets Equity ETF | 0 of 3 | −2.5% | −29.3% | −33.2% | — | — | — | — | — | — | — |
| DFAE Dimensional - Emerging Core Equity Market ETF | 0 of 2 | −2.7% | −28.0% | — | — | — | — | — | — | — | — |
| EMXC iShares MSCI Emerging Markets ex China ETF | 1 of 5 | −2.4% | −28.9% | −36.9% | −9.8% | −6.4% | — | — | — | — | — |
| JPEM JPMorgan Diversified Return Emerging Markets Equity ETF | 3 of 6 | −2.2% | −21.6% | −34.7% | −8.9% | −5.2% | −23.4% | — | — | — | — |
| EELV Invesco S&P Emerging Markets Low Volatility ETF | 6 of 6 | −1.0% | −18.0% | −29.5% | −9.3% | −5.1% | −20.7% | — | — | — | — |
| EWW iShares MSCI Mexico ETF | 5 of 9 | −6.5% | −19.7% | −47.2% | −26.9% | −6.3% | −21.2% | −23.6% | 0.0% | −64.6% | −38.8% |
| SCHE Schwab Emerging Markets Equity ETF | 1 of 8 | −2.7% | −28.1% | −30.7% | −10.9% | −6.6% | −23.6% | −26.1% | 0.0% | — | — |
| DFEM Dimensional - Emerging Markets Core Equity 2 ETF | 0 of 1 | −2.6% | — | — | — | — | — | — | — | — | — |
| EEMV iShares MSCI Emerging Markets Min Vol Factor ETF | 6 of 6 | −1.1% | −21.5% | −25.0% | −9.7% | −5.3% | −18.9% | — | — | — | — |
| EMB iShares J.P. Morgan USD Emerging Markets Bond ETF | 7 of 8 | −0.2% | −24.8% | −26.6% | −4.5% | −2.0% | −4.6% | −7.1% | 0.0% | — | — |
| EMQQ EMQQ The Emerging Markets Internet ETF | 1 of 6 | −5.3% | −42.4% | −28.5% | −19.6% | −8.1% | −23.3% | — | — | — | — |
How closely does VWO move with the S&P 500?
Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell. An investment that captures more of the gains than the losses has compounded ahead of the market over time. This section compares VWO with its popular alternatives on both measures, and on beta (how strongly each has moved with the market), over the past 10 years.
- EELV took just 65% of the S&P 500's losses, against 75% for VWO, while still keeping 54% of its gains.
- Over the past 10 years, VWO captured 63% of the S&P 500's gains in rising months and 75% of its losses in falling months, with a beta of 0.69. Its share of the market's losses was larger than its share of the gains.
- Eight of the 20 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than VWO's 0.84, led by PIE, XCEM and FNDE.
Monthly total returns over the past 10 years, measured against SPY. 100% capture or a beta of 1.00 means moving in line with the S&P 500. Green marks a better figure than VWO's: more upside, less downside or a higher capture ratio. Sorted by capture ratio.
| Investment | Upside capture | Downside capture | Capture ratio | Beta |
|---|---|---|---|---|
| VWO This pageVanguard FTSE Emerging Markets ETF | 63% | 75% | 0.84 | 0.69 |
| PIE Invesco Dorsey Wright Emerging Markets Momentum ETF | 71% | 75% | 0.94 | 0.83 |
| XCEM Columbia EM Core ex-China ETF | 81% | 88% | 0.93 | 0.90 |
| FNDE Schwab Fundamental Emerging Markets Large Company Index ETF | 72% | 79% | 0.91 | 0.71 |
| DEM WisdomTree Emerging Markets High Dividend Fund | 67% | 74% | 0.91 | 0.69 |
| EMGF iShares Emerging Markets Equity Factor ETF | 71% | 77% | 0.91 | 0.76 |
| IEMG iShares Core MSCI Emerging Markets ETF | 71% | 83% | 0.86 | 0.77 |
| SPEM State Street SPDR Portfolio Emerging Markets ETF | 65% | 76% | 0.86 | 0.69 |
| GEM Goldman Sachs ActiveBeta Emerging Markets Equity ETF | 68% | 80% | 0.85 | 0.74 |
| VEA Vanguard FTSE Developed Markets ETF | 81% | 96% | 0.84 | 0.86 |
| VXUS Vanguard Total International Stock ETF | 76% | 91% | 0.84 | 0.82 |
| SCHE Schwab Emerging Markets Equity ETF | 63% | 76% | 0.84 | 0.68 |
| EEM iShares MSCI Emerging Markets ETF | 70% | 84% | 0.83 | 0.77 |
| DGS WisdomTree Emerging Markets SmallCap Dividend Fund | 70% | 84% | 0.83 | 0.78 |
| EELV Invesco S&P Emerging Markets Low Volatility ETF | 54% | 65% | 0.83 | 0.55 |
| EEMS iShares MSCI Emerging Markets Small-Cap ETF | 71% | 87% | 0.82 | 0.83 |
| EEMV iShares MSCI Emerging Markets Min Vol Factor ETF | 50% | 61% | 0.82 | 0.55 |
| JPEM JPMorgan Diversified Return Emerging Markets Equity ETF | 60% | 75% | 0.80 | 0.64 |
| EWW iShares MSCI Mexico ETF | 71% | 96% | 0.74 | 0.88 |
| EMB iShares J.P. Morgan USD Emerging Markets Bond ETF | 36% | 56% | 0.63 | 0.46 |
| EMQQ EMQQ The Emerging Markets Internet ETF | 61% | 107% | 0.57 | 0.76 |
What diversifies VWO?
Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions). This section lists large ETFs and stocks whose returns have had a low correlation with VWO's. Because such investments tend not to fall at the same time, pairing VWO with them can reduce a portfolio's overall swings.
- Moving a fifth of the money in VWO into DBA would have cut the portfolio's volatility by 17% over the past 5 years and raised its annual return (+6.6% for VWO alone, +7.7% for the mix).
- CAH made money in five of the seven calendar years in which VWO lost money.
- Among large ETFs, DXJ, EMLP and HDV have moved largely independently of VWO over the past 5 years, with correlations of 0.45 or lower, and each still earned a positive 5-year return.
Only ETFs with at least $1.0B in assets and stocks worth at least $10B, with a correlation below 0.5 over the past 5 years and a positive return, are included, ranked by Sharpe ratio; funds that hold the same thing are shown once. The year columns are the years in which VWO lost money. The last two columns show a portfolio that is 80% VWO and 20% the other investment, rebalanced monthly.
ETFs
| Investment | Correlation | 5Y return | Sharpe | 2022 | 2018 | 2015 | 2014 | 2013 | 2011 | 2008 | 80/20 mix volatility | 80/20 mix annual return |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| VWO Vanguard FTSE Emerging Markets ETF (this page) | 1.00 | +27.4% | 0.36 | −18.0% | −14.8% | −15.8% | 0.0% | −4.9% | −18.8% | −52.5% | 14.7% | +6.6% |
| DXJ InternationalWisdomTree Japan Hedged Equity Fund | 0.45 | +225% | 1.34 | +6.0% | −19.8% | +7.7% | +8.1% | +41.3% | −16.1% | −20.8% | 13.1% | +10.6% |
| EMLP Broad MarketFirst Trust North American Energy Infrastructure Fund | 0.42 | +103% | 1.06 | +10.4% | −8.7% | −25.3% | +23.8% | +16.6% | — | — | 13.3% | +8.5% |
| HDV Dividend & IncomeiShares Core High Dividend ETF | 0.45 | +86.8% | 1.03 | +7.0% | −3.0% | −0.3% | +12.6% | +23.7% | — | — | 13.3% | +7.8% |
| XLE EnergyState Street Energy Select Sector SPDR ETF | 0.14 | +178% | 0.94 | +64.4% | −18.2% | −21.5% | −8.7% | +26.3% | +2.8% | −39.0% | 13.5% | +10.3% |
| GLD CommoditiesSPDR Gold Shares | 0.47 | +120% | 0.93 | −0.8% | −1.9% | −10.7% | −2.2% | −28.3% | +9.6% | +4.9% | 13.8% | +9.1% |
| SPMO Broad MarketInvesco S&P 500 Momentum ETF | 0.47 | +130% | 0.91 | −10.4% | −0.9% | — | — | — | — | — | 14.2% | +9.7% |
| AMLP EnergyAlerian MLP ETF | 0.18 | +114% | 0.90 | +25.5% | −12.6% | −25.7% | +4.8% | +18.6% | +10.2% | — | 13.0% | +9.2% |
| DBA AlternativesInvesco DB Agriculture Fund | 0.13 | +66.7% | 0.81 | +2.5% | −8.7% | −17.2% | +2.6% | −13.2% | −10.7% | −19.1% | 12.3% | +7.7% |
Stocks
| Investment | Correlation | 5Y return | Sharpe | 2022 | 2018 | 2015 | 2014 | 2013 | 2011 | 2008 | 80/20 mix volatility | 80/20 mix annual return |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| VWO Vanguard FTSE Emerging Markets ETF (this page) | 1.00 | +27.4% | 0.36 | −18.0% | −14.8% | −15.8% | 0.0% | −4.9% | −18.8% | −52.5% | 14.7% | +6.6% |
| CAH Medical - DistributionCardinal Health, Inc. | 0.14 | +471% | 1.54 | +54.1% | −24.5% | +12.6% | +23.0% | +66.0% | +8.1% | −39.6% | 13.6% | +12.9% |
| CLS Hardware, Equipment & PartsCelestica Inc. | 0.31 | +2,780% | 1.43 | +1.3% | −16.3% | −6.0% | +12.9% | +27.6% | −24.4% | −20.5% | 19.0% | +25.0% |
| MCK Medical - DistributionMcKesson Corporation | -0.05 | +397% | 1.41 | +51.8% | −28.4% | −4.5% | +29.3% | +67.7% | +11.8% | −40.4% | 12.6% | +12.4% |
| FIX Engineering & ConstructionComfort Systems USA, Inc. | 0.25 | +1,452% | 1.41 | +17.0% | +0.8% | +67.7% | −10.4% | +61.7% | −17.0% | −15.2% | 16.5% | +21.3% |
| MPC Oil & Gas Refining & MarketingMarathon Petroleum Corporation | 0.11 | +660% | 1.39 | +86.6% | −8.2% | +17.4% | +0.4% | +48.6% | — | — | 14.1% | +14.9% |
Common questions
What was VWO's worst drawdown?
VWO's deepest decline since it began trading in 2005 was 67.7%, from October 2007 to November 2008. It took about nine years from the low to climb back to its old high. Because VWO launched in March 2005, that record does not include the dot-com bust.
What were VWO's best and worst years?
Over 20 full calendar years, VWO's best year was 2009, when it returned 76.3%. Its worst was 2008, with a return of -52.5%.
Is there a better investment than VWO?
Among VWO's popular alternatives, VXUS, DEM and DGS earned more than VWO with less volatility over the past 5 years. VXUS returned 8.0% a year at 16.4% volatility, against 5.0% a year at 17.5%. Looking beyond its popular alternatives, EFAV (international equity) and DFIV (international large-cap value) earned more than VWO with less volatility over the past 5 years. EFAV returned 7.7% a year at 11.9% volatility, against 5.0% a year at 17.5%.
Is VWO more volatile than the S&P 500?
Yes. VWO's volatility over the past 5 years was 17.5%, 1.0 times the S&P 500's 17.2%. Volatility measures how widely returns swing around their average: in roughly two years out of three, VWO's return lands within 17.5% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.
What is VWO's Sharpe ratio?
VWO's Sharpe ratio over the past 5 years was 0.36, against 0.78 for the S&P 500, so VWO earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.
How correlated is VWO with the S&P 500?
Over the past 5 years, VWO's monthly returns had a correlation of 0.63 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They often move together: some diversification next to an index fund, but not a cushion. In the table, the correlation column measures each option against VWO instead: the lower it is, the more that option would diversify a VWO holding.
What are the best alternatives to VWO?
Of the 25 popular alternatives we compared, 17 outperformed VWO in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: SPYM, VEA and FNDE.
Did VWO outperform the S&P 500?
VWO finished ahead of the S&P 500 (SPY) in seven of 20 full calendar years. In 2025, it returned +25.6%, against +17.7% for the index.
How did VWO do in stock market crashes?
VWO fell less than the S&P 500 (SPY) in four of the nine major crashes it has traded through, and further in four. The clearest case was the late-2018 sell-off, when VWO fell 11.3% and the S&P 500 fell 19.3%.
What diversifies VWO?
These had a low correlation with VWO over the past 5 years and still earned a positive 5-year return: among large ETFs, DXJ (correlation 0.45), EMLP (correlation 0.42) and HDV (correlation 0.45); among large stocks, CAH (correlation 0.14), CLS (correlation 0.31) and MCK (correlation -0.05). A correlation near zero means the two have moved largely independently.
How we measure
- Short-term periods are 1M, 3M, 6M, YTD, 1Y; long-term periods are 3Y, 5Y, 10Y. An investment outperformed in a period when its total return, with dividends reinvested, was higher than VWO's. Returns within 0.5 points or 3% of VWO's, whichever is larger, count as a tie.
- "Qualified" means outperforming in at least 3 of 5 short-term periods and 2 of 3 long-term periods. "All-weather" means outperforming in every long-term period and all but one short-term period.
- Popular alternatives are the funds and stocks most often compared with this one. We include only those that trade today, are not leveraged or inverse, and hold at least $200 million.
- Volatility is the annualized standard deviation of daily returns over 5 years, a measure of how much the price typically swings in a year. The Sharpe ratio is the return above cash for each unit of that volatility.
- A decline, or drawdown, runs from a peak to the lowest close before the next high. The worst decline ever uses all the price history we have; comparisons between funds use the past 10 years so that younger funds are judged on the same stretch.
- Sector overlap is the share of assets two funds hold in the same sectors. Correlation and the mixed-portfolio figures use monthly returns.
- Upside and downside capture follow Morningstar's definition: the compound monthly return in the months the S&P 500 rose (or fell), divided by the S&P 500's compound return in those months. Beta measures how strongly monthly returns have moved with the S&P 500. All three use the same window for every investment.
- Figures are computed from daily adjusted prices and update after each trading day. Past performance does not predict future results.
More research
Popular alternatives to VWO
- SPYMState Street SPDR Portfolio S&P 500 ETF
- VEAVanguard FTSE Developed Markets ETF
- VXUSVanguard Total International Stock ETF
IEMGiShares Core MSCI Emerging Markets ETF
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