ACWX vs. VWO

Last updated Aug 4, 2026

ACWX (iShares MSCI ACWI ex U.S. ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both exchange-traded funds - ACWX is a Foreign Large Cap Equities fund tracking the MSCI All Country World ex-U.S. Index, while VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index. Both are passively managed. Over the past 10 years, ACWX returned 9.29%/yr vs 7.69%/yr for VWO. Their correlation of 0.88 means they have usually moved in the same direction. ACWX charges 0.32%/yr vs 0.08%/yr for VWO.

Performance

ACWX vs. VWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI ACWI ex U.S. ETF (ACWX) and Vanguard FTSE Emerging Markets ETF (VWO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ACWX achieves a 13.98% return, which is significantly higher than VWO's 9.99% return. Over the past 10 years, ACWX has outperformed VWO with an annualized return of 9.29%, while VWO has yielded a comparatively lower 7.69% annualized return.

ACWX

• 1D: 0.54%
• 1M: 0.57%
• 6M: 7.43%
• YTD: 13.98%
• 1Y: 29.52%
• 3Y*: 18.43%
• 5Y*: 8.79%
• 10Y*: 9.29%
• ALL TIME*: 4.94%

VWO

• 1D: 0.53%
• 1M: 0.03%
• 6M: 4.14%
• YTD: 9.99%
• 1Y: 22.33%
• 3Y*: 15.67%
• 5Y*: 5.92%
• 10Y*: 7.69%
• ALL TIME*: 6.83%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
ACWX iShares MSCI ACWI ex U.S. ETF	$159.02M	$130.12M	$131.76M
VWO Vanguard FTSE Emerging Markets ETF	$402.91M	$469.57M	$503.00M

ACWX vs. VWO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ACWX iShares MSCI ACWI ex U.S. ETF	13.98%	32.59%	5.17%	15.63%	-16.07%	7.67%	10.29%	21.05%	-13.99%	27.20%
VWO Vanguard FTSE Emerging Markets ETF	9.99%	25.60%	10.59%	9.25%	-17.98%	1.26%	15.17%	20.75%	-14.76%	31.49%

Correlation

The correlation between ACWX and VWO is 0.89, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.89
Correlation (3Y) Balances recent behavior with more history.	0.87
Correlation (5Y) Shows whether the relationship held over a longer period.	0.88
Correlation (10Y) Provides a long-term view across more market conditions.	0.88
Correlation (All Time) Calculated using the full available price history since Mar 31, 2008	0.88

The correlation between ACWX and VWO has been stable across timeframes, ranging from 0.87 to 0.89 - a consistent structural relationship.

ACWX vs. VWO - Sectors Allocation Comparison

Sectors	ACWX	VWO
Financial Services	25.3%	19.4%
Technology	21.1%	34.2%
Industrials	14.1%	7.9%
Healthcare	7.0%	3.7%
Consumer Cyclical	6.9%	9.1%
Basic Materials	6.6%	7.2%
Consumer Defensive	5.1%	3.3%
Energy	4.9%	3.8%
Communication Services	4.1%	6.6%
Utilities	3.0%	2.8%
Real Estate	1.3%	2.0%

Return for Risk

ACWX vs. VWO — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

ACWX

ACWX Risk / Return Rank: 73
ACWX Sharpe Ratio Rank: 74
ACWX Sortino Ratio Rank: 71
ACWX Omega Ratio Rank: 74
ACWX Calmar Ratio Rank: 73
ACWX Martin Ratio Rank: 75

VWO

VWO Risk / Return Rank: 52
VWO Sharpe Ratio Rank: 51
VWO Sortino Ratio Rank: 50
VWO Omega Ratio Rank: 51
VWO Calmar Ratio Rank: 55
VWO Martin Ratio Rank: 54

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

ACWX vs. VWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI ACWI ex U.S. ETF (ACWX) and Vanguard FTSE Emerging Markets ETF (VWO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	ACWX	VWO	Difference
Sharpe ratio: Return per unit of total volatility	1.72	1.28	+0.44
Sortino ratio: Return per unit of downside risk	2.36	1.81	+0.55
Omega ratio: Gain probability vs. loss probability	1.31	1.23	+0.08
Calmar ratio: Return relative to maximum drawdown	2.60	2.01	+0.59
Martin ratio: Return relative to average drawdown	9.48	6.52	+2.96

ACWX vs. VWO - Sharpe Ratio Comparison

The current ACWX Sharpe Ratio is 1.72, which is higher than the VWO Sharpe Ratio of 1.28. The chart below compares the historical Sharpe Ratios of ACWX and VWO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

ACWX vs. VWO - Drawdown Comparison

The maximum ACWX drawdown since its inception was -60.40%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for ACWX and VWO.

Drawdown Indicators

	ACWX	VWO	Difference
Max Drawdown Largest peak-to-trough decline	-60.40%	-67.68%	+7.28%
Max Drawdown (1Y) Largest decline over 1 year	-11.42%	-11.17%	-0.25%
Max Drawdown (3Y) Largest decline over 3 years	-13.84%	-17.37%	+3.53%
Max Drawdown (5Y) Largest decline over 5 years	-29.78%	-30.88%	+1.10%
Max Drawdown (10Y) Largest decline over 10 years	-35.38%	-36.39%	+1.01%
Current Drawdown Current decline from peak	-2.22%	-3.56%	+1.34%
Average Drawdown Average peak-to-trough decline	-13.24%	-15.73%	+2.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.12%	3.43%	-0.31%

Volatility

ACWX vs. VWO - Volatility Comparison

iShares MSCI ACWI ex U.S. ETF (ACWX) and Vanguard FTSE Emerging Markets ETF (VWO) have volatilities of 5.43% and 5.60%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ACWX	VWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.43%	5.60%	-0.17%
Volatility (6M) Calculated over the trailing 6-month period	15.37%	15.08%	+0.29%
Volatility (1Y) Calculated over the trailing 1-year period	17.31%	17.60%	-0.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.62%	17.56%	-0.94%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.28%	19.17%	-1.89%

ACWX vs. VWO - Expense Ratio Comparison

ACWX has a 0.32% expense ratio, which is higher than VWO's 0.08% expense ratio.

Dividends

ACWX vs. VWO - Dividend Comparison

ACWX's dividend yield for the trailing twelve months is around 2.51%, more than VWO's 2.34% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ACWX iShares MSCI ACWI ex U.S. ETF	2.51%	2.82%	2.97%	2.96%	2.68%	2.74%	1.88%	3.22%	2.60%	2.40%	2.77%	2.51%
VWO Vanguard FTSE Emerging Markets ETF	2.34%	2.79%	3.20%	3.52%	4.11%	2.63%	1.91%	3.23%	2.88%	2.30%	2.52%	3.26%

Frequently Asked Questions

Can I hold both ACWX and VWO in my portfolio?

ACWX and VWO have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ACWX or VWO?

VWO has higher volatility (5.60%) compared to ACWX (5.43%). In terms of maximum drawdown, ACWX dropped -60.40% vs VWO's -67.68%.

Which ETF is better, ACWX or VWO?

On 10-year performance, ACWX leads with 9.29% vs 7.69% for VWO. On fees, VWO is cheaper at 0.08% per year. On volatility, ACWX has been the lower-risk option at 5.43%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ACWX or VWO?

Over the 10-year period, ACWX has performed better with a 9.29% return vs 7.69%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ACWX or VWO?

VWO is cheaper with a 0.08% expense ratio, compared with 0.32% for ACWX.

Which ETF pays a higher dividend yield, ACWX or VWO?

ACWX has the higher dividend yield at 2.51%, compared with 2.34% for VWO.

What is the main difference between ACWX and VWO?

ACWX is categorized as Foreign Large Cap Equities, while VWO is Emerging Markets Equities. ACWX tracks MSCI All Country World ex-U.S. Index, while VWO tracks FTSE Emerging Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.32% for ACWX and 0.08% for VWO.

Which has better risk-adjusted returns?

ACWX currently has the higher Sharpe Ratio (1.72 vs 1.28), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.