DGS vs. VSS

Last updated Jun 4, 2026

DGS (WisdomTree Emerging Markets SmallCap Dividend Fund) and VSS (Vanguard FTSE All-World ex-US Small-Cap ETF) are both exchange-traded funds - DGS is a Emerging Markets Diversified fund tracking the WisdomTree Emerging Markets SmallCap Dividend Index, while VSS is a Foreign Small & Mid Cap Equities fund tracking the FTSE Global Small Cap ex US Index. Both are passively managed. Over the past 10 years, DGS returned 9.93%/yr vs 8.07%/yr for VSS. Their correlation of 0.87 suggests significant overlap in exposure. DGS charges 0.58%/yr vs 0.07%/yr for VSS.

Performance

DGS vs. VSS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Emerging Markets SmallCap Dividend Fund (DGS) and Vanguard FTSE All-World ex-US Small-Cap ETF (VSS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DGS achieves a 14.53% return, which is significantly higher than VSS's 10.57% return. Over the past 10 years, DGS has outperformed VSS with an annualized return of 9.93%, while VSS has yielded a comparatively lower 8.07% annualized return.

DGS

• 1D: -1.37%
• 1M: 2.58%
• YTD: 14.53%
• 6M: 15.57%
• 1Y: 27.26%
• 3Y*: 16.17%
• 5Y*: 7.85%
• 10Y*: 9.93%

VSS

• 1D: -1.12%
• 1M: 1.27%
• YTD: 10.57%
• 6M: 13.10%
• 1Y: 27.32%
• 3Y*: 16.67%
• 5Y*: 5.76%
• 10Y*: 8.07%

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

DGS vs. VSS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DGS WisdomTree Emerging Markets SmallCap Dividend Fund	14.53%	21.18%	1.13%	19.08%	-12.35%	15.33%	4.06%	18.90%	-16.52%	37.47%
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	10.57%	29.61%	2.94%	15.52%	-21.48%	13.05%	11.81%	21.36%	-18.48%	30.61%

Correlation

The correlation between DGS and VSS is 0.89, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.89
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.87
Correlation (10Y) Calculated over the trailing 10-year period	0.86
Correlation (All Time) Calculated using the full available price history since Apr 7, 2009	0.87

The correlation between DGS and VSS has been stable across timeframes, ranging from 0.86 to 0.89 - a consistent structural relationship.

Return for Risk

DGS vs. VSS — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

DGS

DGS Risk / Return Rank: 51
DGS Sharpe Ratio Rank: 50
DGS Sortino Ratio Rank: 49
DGS Omega Ratio Rank: 50
DGS Calmar Ratio Rank: 54
DGS Martin Ratio Rank: 53

VSS

VSS Risk / Return Rank: 51
VSS Sharpe Ratio Rank: 53
VSS Sortino Ratio Rank: 51
VSS Omega Ratio Rank: 54
VSS Calmar Ratio Rank: 47
VSS Martin Ratio Rank: 53

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.

DGS vs. VSS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Emerging Markets SmallCap Dividend Fund (DGS) and Vanguard FTSE All-World ex-US Small-Cap ETF (VSS). 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.

	DGS	VSS	Difference
Sharpe ratio: Return per unit of total volatility	1.76	1.85	-0.09
Sortino ratio: Return per unit of downside risk	2.43	2.54	-0.11
Omega ratio: Gain probability vs. loss probability	1.32	1.34	-0.02
Calmar ratio: Return relative to maximum drawdown	2.72	2.36	+0.36
Martin ratio: Return relative to average drawdown	9.16	9.13	+0.03
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DGS vs. VSS - Sharpe Ratio Comparison

The current DGS Sharpe Ratio is 1.76, which is comparable to the VSS Sharpe Ratio of 1.85. The chart below compares the historical Sharpe Ratios of DGS and VSS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	DGS	VSS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.76	1.85	-0.09
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.53	0.35	+0.18
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.58	0.47	+0.11
Sharpe Ratio (All Time) Calculated using the full available price history	0.23	0.55	-0.32

Drawdowns

DGS vs. VSS - Drawdown Comparison

The maximum DGS drawdown since its inception was -61.83%, which is greater than VSS's maximum drawdown of -43.51%. Use the drawdown chart below to compare losses from any high point for DGS and VSS.

Drawdown Indicators

	DGS	VSS	Difference
Max Drawdown Largest peak-to-trough decline	-61.83%	-43.51%	-18.32%
Max Drawdown (1Y) Largest decline over 1 year	-10.06%	-11.62%	+1.56%
Max Drawdown (3Y) Largest decline over 3 years	-19.31%	-15.73%	-3.58%
Max Drawdown (5Y) Largest decline over 5 years	-24.86%	-33.93%	+9.07%
Max Drawdown (10Y) Largest decline over 10 years	-44.08%	-43.51%	-0.57%
Current Drawdown Current decline from peak	-1.40%	-2.58%	+1.18%
Average Drawdown Average peak-to-trough decline	-12.59%	-9.64%	-2.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.98%	3.00%	-0.02%

Volatility

DGS vs. VSS - Volatility Comparison

WisdomTree Emerging Markets SmallCap Dividend Fund (DGS) and Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) have volatilities of 5.24% and 5.33%, 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

	DGS	VSS	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.24%	5.33%	-0.09%
Volatility (6M) Calculated over the trailing 6-month period	13.03%	12.64%	+0.39%
Volatility (1Y) Calculated over the trailing 1-year period	15.56%	14.81%	+0.75%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.87%	16.46%	-1.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.32%	17.27%	+0.05%

DGS vs. VSS - Expense Ratio Comparison

DGS has a 0.58% expense ratio, which is higher than VSS's 0.07% expense ratio.

Dividends

DGS vs. VSS - Dividend Comparison

DGS's dividend yield for the trailing twelve months is around 3.21%, more than VSS's 3.07% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DGS WisdomTree Emerging Markets SmallCap Dividend Fund	3.21%	3.45%	3.36%	4.55%	5.34%	3.98%	3.69%	3.95%	4.24%	2.81%	3.42%	3.28%
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	3.07%	3.39%	3.44%	3.14%	2.30%	2.74%	1.90%	3.25%	2.80%	2.83%	2.93%	2.66%

Frequently Asked Questions

Can I hold both DGS and VSS in my portfolio?

DGS and VSS 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, DGS or VSS?

VSS has higher volatility (5.33%) compared to DGS (5.24%). In terms of maximum drawdown, DGS dropped -61.83% vs VSS's -43.51%.

Which ETF is better, DGS or VSS?

On 10-year performance, DGS leads with 9.93% vs 8.07% for VSS. On fees, VSS is cheaper at 0.07% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DGS or VSS?

Over the 10-year period, DGS has performed better with a 9.93% return vs 8.07%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DGS or VSS?

VSS is cheaper with a 0.07% expense ratio, compared with 0.58% for DGS.

Which ETF pays a higher dividend yield, DGS or VSS?

DGS has the higher dividend yield at 3.21%, compared with 3.07% for VSS.

What is the main difference between DGS and VSS?

DGS is categorized as Emerging Markets Diversified, while VSS is Foreign Small & Mid Cap Equities. DGS tracks WisdomTree Emerging Markets SmallCap Dividend Index, while VSS tracks FTSE Global Small Cap ex US Index. They also come from different issuers: WisdomTree and Vanguard. Their fees differ too: 0.58% for DGS and 0.07% for VSS.

Which has better risk-adjusted returns?

VSS currently has the higher Sharpe Ratio (1.85 vs 1.76), 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.