ESGE vs. VWO

Last updated Aug 2, 2026

ESGE (iShares ESG Aware MSCI EM ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both Emerging Markets Equities funds - ESGE tracks the MSCI EM Extended ESG Focus Index while VWO tracks the FTSE Emerging Index. Both are passively managed. Over the past 10 years, ESGE returned 8.88%/yr vs 7.86%/yr for VWO. Their 0.95 correlation means they have historically moved very closely together. ESGE charges 0.25%/yr vs 0.08%/yr for VWO.

Performance

ESGE vs. VWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares ESG Aware MSCI EM ETF (ESGE) 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, ESGE achieves a 17.50% return, which is significantly higher than VWO's 9.41% return. Over the past 10 years, ESGE has outperformed VWO with an annualized return of 8.88%, while VWO has yielded a comparatively lower 7.86% annualized return.

ESGE

• 1D: 0.92%
• 1M: -1.79%
• 6M: 9.17%
• YTD: 17.50%
• 1Y: 34.75%
• 3Y*: 18.81%
• 5Y*: 6.80%
• 10Y*: 8.88%
• ALL TIME*: 8.86%

VWO

• 1D: 0.96%
• 1M: -0.49%
• 6M: 4.16%
• YTD: 9.41%
• 1Y: 21.69%
• 3Y*: 14.84%
• 5Y*: 6.08%
• 10Y*: 7.86%
• ALL TIME*: 6.81%

*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)
ESGE iShares ESG Aware MSCI EM ETF	$53.52M	$39.94M	$58.74M
VWO Vanguard FTSE Emerging Markets ETF	$386.61M	$469.40M	$499.89M

ESGE vs. VWO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ESGE iShares ESG Aware MSCI EM ETF	17.50%	35.86%	6.63%	9.51%	-22.41%	-2.87%	18.60%	20.37%	-15.24%	38.86%
VWO Vanguard FTSE Emerging Markets ETF	9.41%	25.60%	10.59%	9.25%	-17.98%	1.26%	15.17%	20.75%	-14.76%	31.49%

Correlation

The correlation between ESGE and VWO is 0.94, 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.	0.94
Correlation (3Y) Balances recent behavior with more history.	0.96
Correlation (5Y) Shows whether the relationship held over a longer period.	0.97
Correlation (10Y) Provides a long-term view across more market conditions.	0.95
Correlation (All Time) Calculated using the full available price history since Jul 20, 2016	0.95

The correlation between ESGE and VWO has been stable across timeframes, ranging from 0.94 to 0.97 - a consistent structural relationship.

ESGE vs. VWO - Sectors Allocation Comparison

Sectors	ESGE	VWO
Technology	45.4%	34.2%
Financial Services	23.0%	19.4%
Communication Services	7.2%	6.6%
Consumer Cyclical	6.8%	9.1%
Industrials	4.9%	7.9%
Basic Materials	4.2%	7.2%
Healthcare	2.5%	3.7%
Consumer Defensive	2.1%	3.3%
Energy	1.7%	3.8%
Utilities	1.3%	2.8%
Real Estate	1.0%	2.0%

Return for Risk

ESGE vs. VWO — Risk / Return Rank

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

ESGE

ESGE Risk / Return Rank: 61
ESGE Sharpe Ratio Rank: 59
ESGE Sortino Ratio Rank: 55
ESGE Omega Ratio Rank: 62
ESGE Calmar Ratio Rank: 70
ESGE Martin Ratio Rank: 61

VWO

VWO Risk / Return Rank: 51
VWO Sharpe Ratio Rank: 49
VWO Sortino Ratio Rank: 48
VWO Omega Ratio Rank: 49
VWO Calmar Ratio Rank: 54
VWO Martin Ratio Rank: 53

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.

ESGE vs. VWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares ESG Aware MSCI EM ETF (ESGE) 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.

	ESGE	VWO	Difference
Sharpe ratio: Return per unit of total volatility	1.39	1.20	+0.18
Sortino ratio: Return per unit of downside risk	1.90	1.72	+0.18
Omega ratio: Gain probability vs. loss probability	1.27	1.22	+0.04
Calmar ratio: Return relative to maximum drawdown	2.44	1.89	+0.55
Martin ratio: Return relative to average drawdown	7.40	6.16	+1.24

ESGE vs. VWO - Sharpe Ratio Comparison

The current ESGE Sharpe Ratio is 1.39, which is comparable to the VWO Sharpe Ratio of 1.20. The chart below compares the historical Sharpe Ratios of ESGE 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

ESGE vs. VWO - Drawdown Comparison

The maximum ESGE drawdown since its inception was -41.07%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for ESGE and VWO.

Drawdown Indicators

	ESGE	VWO	Difference
Max Drawdown Largest peak-to-trough decline	-41.07%	-67.68%	+26.61%
Max Drawdown (1Y) Largest decline over 1 year	-13.90%	-11.17%	-2.73%
Max Drawdown (3Y) Largest decline over 3 years	-16.71%	-17.37%	+0.66%
Max Drawdown (5Y) Largest decline over 5 years	-37.07%	-30.88%	-6.19%
Max Drawdown (10Y) Largest decline over 10 years	-41.07%	-36.39%	-4.68%
Current Drawdown Current decline from peak	-9.30%	-4.07%	-5.23%
Average Drawdown Average peak-to-trough decline	-14.34%	-15.73%	+1.39%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.58%	3.43%	+1.15%

Volatility

ESGE vs. VWO - Volatility Comparison

iShares ESG Aware MSCI EM ETF (ESGE) has a higher volatility of 9.09% compared to Vanguard FTSE Emerging Markets ETF (VWO) at 5.58%. This indicates that ESGE'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

	ESGE	VWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.09%	5.58%	+3.51%
Volatility (6M) Calculated over the trailing 6-month period	22.33%	15.22%	+7.11%
Volatility (1Y) Calculated over the trailing 1-year period	24.45%	17.58%	+6.87%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.98%	17.56%	+2.42%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.35%	19.17%	+1.18%

ESGE vs. VWO - Expense Ratio Comparison

ESGE has a 0.25% expense ratio, which is higher than VWO's 0.08% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

ESGE vs. VWO - Dividend Comparison

ESGE's dividend yield for the trailing twelve months is around 2.20%, less than VWO's 2.35% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ESGE iShares ESG Aware MSCI EM ETF	2.20%	2.50%	2.41%	2.64%	2.68%	2.66%	1.31%	2.59%	2.19%	1.86%	0.27%	0.00%
VWO Vanguard FTSE Emerging Markets ETF	2.35%	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 ESGE and VWO in my portfolio?

With a correlation of 0.94, ESGE 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, ESGE or VWO?

ESGE has higher volatility (9.09%) compared to VWO (5.58%). In terms of maximum drawdown, ESGE dropped -41.07% vs VWO's -67.68%.

Which ETF is better, ESGE or VWO?

On 10-year performance, ESGE leads with 8.88% vs 7.86% for VWO. On fees, VWO is cheaper at 0.08% per year. On volatility, VWO has been the lower-risk option at 5.58%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ESGE or VWO?

Over the 10-year period, ESGE has performed better with a 8.88% return vs 7.86%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ESGE or VWO?

VWO is cheaper with a 0.08% expense ratio, compared with 0.25% for ESGE.

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

VWO has the higher dividend yield at 2.35%, compared with 2.20% for ESGE.

What is the main difference between ESGE and VWO?

ESGE tracks MSCI EM Extended ESG Focus Index, while VWO tracks FTSE Emerging Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.25% for ESGE and 0.08% for VWO.

Which has better risk-adjusted returns?

ESGE currently has the higher Sharpe Ratio (1.39 vs 1.20), 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.