BDCX vs. VWO
BDCX (ETRACS Quarterly Pay 1.5X Leveraged MVIS BDC Index ETN) and VWO (Vanguard FTSE Emerging Markets ETF) are both exchange-traded funds - BDCX is a Leveraged Equities fund tracking the MVIS US Business Development Companies (150%), while VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index. Both are passively managed. Over the past 5 years, BDCX returned 1.22%/yr vs 4.65%/yr for VWO. At a 0.41 correlation, their price movements are largely independent. BDCX charges 0.95%/yr vs 0.08%/yr for VWO.
Performance
BDCX vs. VWO - Performance Comparison
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Returns By Period
In the year-to-date period, BDCX achieves a -11.90% return, which is significantly lower than VWO's 8.50% return.
BDCX
- 1D
- -0.44%
- 1M
- -5.50%
- YTD
- -11.90%
- 6M
- -14.62%
- 1Y
- -18.01%
- 3Y*
- 2.98%
- 5Y*
- 1.22%
- 10Y*
- —
VWO
- 1D
- 0.52%
- 1M
- -3.65%
- YTD
- 8.50%
- 6M
- 9.73%
- 1Y
- 24.29%
- 3Y*
- 16.22%
- 5Y*
- 4.65%
- 10Y*
- 8.60%
BDCX vs. VWO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
BDCX ETRACS Quarterly Pay 1.5X Leveraged MVIS BDC Index ETN | -11.90% | -10.42% | 15.32% | 35.33% | -17.67% | 52.70% | 24.50% |
VWO Vanguard FTSE Emerging Markets ETF | 8.50% | 25.60% | 10.59% | 9.25% | -17.98% | 1.26% | 28.26% |
Correlation
The correlation between BDCX and VWO is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.35 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.36 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.42 |
Correlation (All Time) Calculated using the full available price history since Jun 4, 2020 | 0.41 |
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Return for Risk
BDCX vs. VWO — Risk / Return Rank
BDCX
VWO
BDCX vs. VWO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for ETRACS Quarterly Pay 1.5X Leveraged MVIS BDC Index ETN (BDCX) 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.
| BDCX | VWO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.15 | ||
| Sortino ratioReturn per unit of downside risk | -2.91 | ||
| Omega ratioGain probability vs. loss probability | 0.91 | 1.28 | -0.37 |
| Calmar ratioReturn relative to maximum drawdown | -0.59 | 2.18 | -2.78 |
| Martin ratioReturn relative to average drawdown | -1.04 | 7.79 | -8.83 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| BDCX | VWO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | -0.66 | 1.49 | -2.15 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.05 | 0.27 | -0.22 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.45 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.43 | 0.26 | +0.17 |
Drawdowns
BDCX vs. VWO - Drawdown Comparison
The maximum BDCX drawdown since its inception was -34.96%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for BDCX and VWO.
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Drawdown Indicators
| BDCX | VWO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.96% | -67.68% | +32.72% |
Max Drawdown (1Y)Largest decline over 1 year | -30.46% | -11.17% | -19.29% |
Max Drawdown (3Y)Largest decline over 3 years | -33.39% | -17.37% | -16.02% |
Max Drawdown (5Y)Largest decline over 5 years | -34.96% | -32.60% | -2.36% |
Max Drawdown (10Y)Largest decline over 10 years | — | -36.39% | — |
Current DrawdownCurrent decline from peak | -28.40% | -4.67% | -23.73% |
Average DrawdownAverage peak-to-trough decline | -10.10% | -15.81% | +5.71% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 17.35% | 3.12% | +14.23% |
Volatility
BDCX vs. VWO - Volatility Comparison
ETRACS Quarterly Pay 1.5X Leveraged MVIS BDC Index ETN (BDCX) has a higher volatility of 8.65% compared to Vanguard FTSE Emerging Markets ETF (VWO) at 6.29%. This indicates that BDCX's price experiences larger fluctuations and is considered to be riskier than VWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| BDCX | VWO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.65% | 6.29% | +2.36% |
Volatility (6M)Calculated over the trailing 6-month period | 22.81% | 13.80% | +9.01% |
Volatility (1Y)Calculated over the trailing 1-year period | 27.60% | 16.37% | +11.23% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 26.59% | 17.45% | +9.14% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 26.94% | 19.23% | +7.71% |
BDCX vs. VWO - Expense Ratio Comparison
BDCX has a 0.95% expense ratio, which is higher than VWO's 0.08% expense ratio.
Dividends
BDCX vs. VWO - Dividend Comparison
BDCX's dividend yield for the trailing twelve months is around 20.31%, more than VWO's 2.49% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BDCX ETRACS Quarterly Pay 1.5X Leveraged MVIS BDC Index ETN | 20.31% | 19.17% | 15.28% | 14.71% | 17.47% | 11.52% | 6.32% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VWO Vanguard FTSE Emerging Markets ETF | 2.49% | 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
BDCX and VWO have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BDCX has higher volatility (8.65%) compared to VWO (6.29%). In terms of maximum drawdown, BDCX dropped -34.96% vs VWO's -67.68%.
On 5-year performance, VWO leads with 4.65% vs 1.22% for BDCX. On fees, VWO is cheaper at 0.08% per year. On volatility, VWO has been the lower-risk option at 6.29%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, VWO has performed better with a 4.65% return vs 1.22%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VWO is cheaper with a 0.08% expense ratio, compared with 0.95% for BDCX.
BDCX has the higher dividend yield at 20.31%, compared with 2.49% for VWO.
BDCX is categorized as Leveraged Equities, while VWO is Emerging Markets Equities. BDCX tracks MVIS US Business Development Companies (150%), while VWO tracks FTSE Emerging Index. They also come from different issuers: UBS and Vanguard. Their fees differ too: 0.95% for BDCX and 0.08% for VWO.
VWO currently has the higher Sharpe Ratio (1.49 vs -0.66), 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.
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