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DES vs. VWO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

DES vs. VWO

Last updated Jun 13, 2026

DES (WisdomTree U.S. SmallCap Dividend Fund) and VWO (Vanguard FTSE Emerging Markets ETF) are both exchange-traded funds - DES is a Small Cap Blend Equities fund tracking the WisdomTree SmallCap Dividend (TR), while VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index. Both are passively managed. Over the past 10 years, DES returned 8.59%/yr vs 9.00%/yr for VWO. A 0.62 correlation means they provide meaningful diversification when combined. DES charges 0.38%/yr vs 0.08%/yr for VWO.

Performance

DES vs. VWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree U.S. SmallCap Dividend Fund (DES) and Vanguard FTSE Emerging Markets ETF (VWO). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, DES achieves a 20.48% return, which is significantly higher than VWO's 10.77% return. Both investments have delivered pretty close results over the past 10 years, with DES having a 8.59% annualized return and VWO not far ahead at 9.00%.

DES

1D
0.98%
1M
5.05%
YTD
20.48%
6M
17.29%
1Y
31.80%
3Y*
14.46%
5Y*
6.81%
10Y*
8.59%

VWO

1D
0.76%
1M
-0.68%
YTD
10.77%
6M
12.57%
1Y
26.52%
3Y*
16.61%
5Y*
5.03%
10Y*
9.00%
*Multi-year figures are annualized to reflect compound growth (CAGR)

DES vs. VWO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
DES
WisdomTree U.S. SmallCap Dividend Fund		20.48%0.25%9.93%16.50%-10.96%26.51%-4.26%20.26%-12.85%8.64%
VWO
Vanguard FTSE Emerging Markets ETF		10.77%25.60%10.59%9.25%-17.98%1.26%15.17%20.75%-14.76%31.49%

Correlation

The correlation between DES and VWO is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.48

Correlation (3Y)
Calculated over the trailing 3-year period

0.48

Correlation (5Y)
Calculated over the trailing 5-year period

0.51

Correlation (10Y)
Calculated over the trailing 10-year period

0.52

Correlation (All Time)
Calculated using the full available price history since Jun 16, 2006

0.62

The correlation between DES and VWO shifts across timeframes, from 0.48 (1 year) to 0.62 (all time), reflecting how their relationship changes across market environments.

DES vs. VWO - Sectors Allocation Comparison

Sectors
DES
VWO

Financial Services

23.7%
19.5%

Consumer Cyclical

14.8%
10.7%

Industrials

13.3%
8.0%

Energy

10.7%
4.6%

Real Estate

9.6%
2.2%

Basic Materials

6.0%
8.0%

Technology

5.5%
29.6%

Utilities

4.6%
2.9%

Consumer Defensive

4.3%
3.7%

Communication Services

2.8%
7.1%

Healthcare

1.7%
3.9%

Financial Services

DES
23.7%
VWO
19.5%

Consumer Cyclical

DES
14.8%
VWO
10.7%

Industrials

DES
13.3%
VWO
8.0%

Energy

DES
10.7%
VWO
4.6%

Real Estate

DES
9.6%
VWO
2.2%

Basic Materials

DES
6.0%
VWO
8.0%

Technology

DES
5.5%
VWO
29.6%

Utilities

DES
4.6%
VWO
2.9%

Consumer Defensive

DES
4.3%
VWO
3.7%

Communication Services

DES
2.8%
VWO
7.1%

Healthcare

DES
1.7%
VWO
3.9%

Compare stocks, funds, or ETFs

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WisdomTree U.S. SmallCap Dividend Fund

Vanguard FTSE Emerging Markets ETF

Often compared with DES:
DES vs. FDVVDES vs. AVUVDES vs. EESDES vs. IWNDES vs. SCHDDES vs. VBRDES vs. VXUS
Often compared with VWO:
VWO vs. VEAVWO vs. IEMGVWO vs. VXUSVWO vs. EEMVWO vs. VOOVWO vs. VTIVWO vs. VEMAX

Return for Risk

DES vs. VWO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
DES
DES Risk / Return Rank: 6868
Overall Rank
DES Sharpe Ratio Rank: 6363
Sharpe Ratio Rank
DES Sortino Ratio Rank: 6767
Sortino Ratio Rank
DES Omega Ratio Rank: 6060
Omega Ratio Rank
DES Calmar Ratio Rank: 8383
Calmar Ratio Rank
DES Martin Ratio Rank: 6969
Martin Ratio Rank
VWO
VWO Risk / Return Rank: 5050
Overall Rank
VWO Sharpe Ratio Rank: 4949
Sharpe Ratio Rank
VWO Sortino Ratio Rank: 4747
Sortino Ratio Rank
VWO Omega Ratio Rank: 5151
Omega Ratio Rank
VWO Calmar Ratio Rank: 5050
Calmar Ratio Rank
VWO Martin Ratio Rank: 5252
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

DES vs. VWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree U.S. SmallCap Dividend Fund (DES) 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.

DESVWODifference
Sharpe ratioReturn per unit of total volatility
1.79
1.49

+0.30

Sortino ratioReturn per unit of downside risk
2.66
2.10

+0.56

Omega ratioGain probability vs. loss probability

1.32

1.28

+0.04

Calmar ratioReturn relative to maximum drawdown

3.87

2.21

+1.66

Martin ratioReturn relative to average drawdown

11.13

7.80

+3.32

DES vs. VWO - Sharpe Ratio Comparison

The current DES Sharpe Ratio is 1.79, which is comparable to the VWO Sharpe Ratio of 1.49. The chart below compares the historical Sharpe Ratios of DES 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.

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Drawdowns

DES vs. VWO - Drawdown Comparison

The maximum DES drawdown since its inception was -65.48%, roughly equal to the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for DES and VWO.

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Drawdown Indicators

DESVWODifference

Max Drawdown

Largest peak-to-trough decline

-65.48%

-67.68%

+2.20%

Max Drawdown (1Y)

Largest decline over 1 year

-7.64%

-11.17%

+3.53%

Max Drawdown (3Y)

Largest decline over 3 years

-25.16%

-17.37%

-7.79%

Max Drawdown (5Y)

Largest decline over 5 years

-25.16%

-32.60%

+7.44%

Max Drawdown (10Y)

Largest decline over 10 years

-45.65%

-36.39%

-9.26%

Current Drawdown

Current decline from peak

0.00%

-2.68%

+2.68%

Average Drawdown

Average peak-to-trough decline

-9.67%

-15.80%

+6.13%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.66%

3.17%

-0.51%

Volatility

DES vs. VWO - Volatility Comparison

The current volatility for WisdomTree U.S. SmallCap Dividend Fund (DES) is 4.28%, while Vanguard FTSE Emerging Markets ETF (VWO) has a volatility of 6.64%. This indicates that DES experiences smaller price fluctuations and is considered to be less risky 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

DESVWODifference

Volatility (1M)

Calculated over the trailing 1-month period

4.28%

6.64%

-2.36%

Volatility (6M)

Calculated over the trailing 6-month period

10.97%

14.04%

-3.07%

Volatility (1Y)

Calculated over the trailing 1-year period

16.48%

16.54%

-0.06%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

19.58%

17.48%

+2.10%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

21.97%

19.22%

+2.75%

DES vs. VWO - Expense Ratio Comparison

DES has a 0.38% expense ratio, which is higher than VWO's 0.08% expense ratio.

Dividends

DES vs. VWO - Dividend Comparison

DES's dividend yield for the trailing twelve months is around 2.29%, less than VWO's 2.44% yield.

PositionTTM20252024202320222021202020192018201720162015
DES
WisdomTree U.S. SmallCap Dividend Fund		2.29%2.85%2.81%2.65%2.89%2.31%2.75%2.68%3.65%2.89%2.70%3.09%
VWO
Vanguard FTSE Emerging Markets ETF		2.44%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

DES and VWO have a correlation of 0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VWO has higher volatility (6.64%) compared to DES (4.28%). In terms of maximum drawdown, DES dropped -65.48% vs VWO's -67.68%.

On 10-year performance, VWO leads with 9.00% vs 8.59% for DES. On fees, VWO is cheaper at 0.08% per year. On volatility, DES has been the lower-risk option at 4.28%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VWO has performed better with a 9.00% return vs 8.59%. 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 0.38% for DES.

VWO has the higher dividend yield at 2.44%, compared with 2.29% for DES.

DES is categorized as Small Cap Blend Equities, while VWO is Emerging Markets Equities. DES tracks WisdomTree SmallCap Dividend (TR), while VWO tracks FTSE Emerging Index. They also come from different issuers: WisdomTree and Vanguard. Their fees differ too: 0.38% for DES and 0.08% for VWO.

DES currently has the higher Sharpe Ratio (1.79 vs 1.49), 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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