EQLT vs. VWO

Last updated Jun 24, 2026

EQLT (iShares MSCI Emerging Markets Quality Factor ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both Emerging Markets Equities funds - EQLT tracks the MSCI Emerging Markets Quality Factor Select Index while VWO tracks the FTSE Emerging Index. Both are passively managed. Over the past year, EQLT returned 53.56% vs 27.03% for VWO. Their correlation of 0.92 suggests significant overlap in exposure. EQLT charges 0.35%/yr vs 0.08%/yr for VWO.

Performance

EQLT vs. VWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Emerging Markets Quality Factor ETF (EQLT) 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, EQLT achieves a 27.04% return, which is significantly higher than VWO's 10.55% return.

EQLT

• 1D: -4.53%
• 1M: 0.53%
• YTD: 27.04%
• 6M: 27.81%
• 1Y: 53.56%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VWO

• 1D: -3.07%
• 1M: 0.76%
• YTD: 10.55%
• 6M: 10.67%
• 1Y: 27.03%
• 3Y*: 17.42%
• 5Y*: 5.09%
• 10Y*: 8.97%

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

EQLT vs. VWO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
EQLT iShares MSCI Emerging Markets Quality Factor ETF	27.04%	33.93%	-1.29%
VWO Vanguard FTSE Emerging Markets ETF	10.55%	25.60%	2.48%

Correlation

The correlation between EQLT and VWO is 0.91, 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	0.91
Correlation (All Time) Calculated using the full available price history since Sep 6, 2024	0.92

The correlation between EQLT and VWO has been stable across timeframes, ranging from 0.91 to 0.92 - a consistent structural relationship.

EQLT vs. VWO - Sectors Allocation Comparison

Sectors	EQLT	VWO
Technology	36.1%	31.6%
Financial Services	17.4%	16.8%
Industrials	10.8%	6.8%
Consumer Cyclical	10.1%	8.7%
Basic Materials	6.8%	7.0%
Communication Services	6.3%	5.8%
Energy	3.7%	3.6%
Consumer Defensive	3.2%	3.1%
Healthcare	2.6%	3.4%
Utilities	1.9%	2.4%
Real Estate	1.2%	1.8%

Return for Risk

EQLT vs. VWO — Risk / Return Rank

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

EQLT

EQLT Risk / Return Rank: 81
EQLT Sharpe Ratio Rank: 80
EQLT Sortino Ratio Rank: 73
EQLT Omega Ratio Rank: 79
EQLT Calmar Ratio Rank: 86
EQLT Martin Ratio Rank: 87

VWO

VWO Risk / Return Rank: 49
VWO Sharpe Ratio Rank: 48
VWO Sortino Ratio Rank: 46
VWO Omega Ratio Rank: 49
VWO Calmar Ratio Rank: 51
VWO Martin Ratio Rank: 51

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.

EQLT vs. VWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Emerging Markets Quality Factor ETF (EQLT) 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.

	EQLT	VWO	Difference
Sharpe ratio: Return per unit of total volatility	2.36	1.60	+0.75
Sortino ratio: Return per unit of downside risk	3.00	2.22	+0.78
Omega ratio: Gain probability vs. loss probability	1.43	1.30	+0.13
Calmar ratio: Return relative to maximum drawdown	4.49	2.43	+2.06
Martin ratio: Return relative to average drawdown	17.33	8.56	+8.78

EQLT vs. VWO - Sharpe Ratio Comparison

The current EQLT Sharpe Ratio is 2.36, which is higher than the VWO Sharpe Ratio of 1.60. The chart below compares the historical Sharpe Ratios of EQLT 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

EQLT vs. VWO - Drawdown Comparison

The maximum EQLT drawdown since its inception was -17.38%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for EQLT and VWO.

Drawdown Indicators

	EQLT	VWO	Difference
Max Drawdown Largest peak-to-trough decline	-17.38%	-67.68%	+50.30%
Max Drawdown (1Y) Largest decline over 1 year	-12.00%	-11.17%	-0.83%
Max Drawdown (3Y) Largest decline over 3 years	—	-17.37%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-32.60%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-36.39%	—
Current Drawdown Current decline from peak	-5.24%	-3.07%	-2.17%
Average Drawdown Average peak-to-trough decline	-3.59%	-15.79%	+12.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.10%	3.17%	-0.07%

Volatility

EQLT vs. VWO - Volatility Comparison

iShares MSCI Emerging Markets Quality Factor ETF (EQLT) has a higher volatility of 10.59% compared to Vanguard FTSE Emerging Markets ETF (VWO) at 7.37%. This indicates that EQLT'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.

Volatility by Period

	EQLT	VWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.59%	7.37%	+3.22%
Volatility (6M) Calculated over the trailing 6-month period	20.74%	14.62%	+6.12%
Volatility (1Y) Calculated over the trailing 1-year period	22.82%	16.94%	+5.88%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.35%	17.58%	+3.77%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.35%	19.18%	+2.17%

EQLT vs. VWO - Expense Ratio Comparison

EQLT has a 0.35% expense ratio, which is higher than VWO's 0.08% expense ratio.

Dividends

EQLT vs. VWO - Dividend Comparison

EQLT's dividend yield for the trailing twelve months is around 2.62%, more than VWO's 2.33% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EQLT iShares MSCI Emerging Markets Quality Factor ETF	2.62%	3.10%	0.51%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VWO Vanguard FTSE Emerging Markets ETF	2.33%	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 EQLT and VWO in my portfolio?

With a correlation of 0.91, EQLT and VWO move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, EQLT or VWO?

EQLT has higher volatility (10.59%) compared to VWO (7.37%). In terms of maximum drawdown, EQLT dropped -17.38% vs VWO's -67.68%.

Which ETF is better, EQLT or VWO?

On 1-year performance, EQLT leads with 53.56% vs 27.03% for VWO. On fees, VWO is cheaper at 0.08% per year. On volatility, VWO has been the lower-risk option at 7.37%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EQLT or VWO?

Over the 1-year period, EQLT has performed better with a 53.56% return vs 27.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EQLT or VWO?

VWO is cheaper with a 0.08% expense ratio, compared with 0.35% for EQLT.

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

EQLT has the higher dividend yield at 2.62%, compared with 2.33% for VWO.

What is the main difference between EQLT and VWO?

EQLT tracks MSCI Emerging Markets Quality Factor Select Index, while VWO tracks FTSE Emerging Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.35% for EQLT and 0.08% for VWO.

Which has better risk-adjusted returns?

EQLT currently has the higher Sharpe Ratio (2.36 vs 1.60), 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.