FFEM vs. VWO

Last updated Aug 1, 2026

FFEM (Fidelity Fundamental Emerging Markets ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both Emerging Markets Equities funds. FFEM is actively managed, while VWO is passively managed. Over the past year, FFEM returned 46.94% vs 21.69% for VWO. Their correlation of 0.93 means they have usually moved in the same direction. FFEM charges 0.60%/yr vs 0.08%/yr for VWO.

Performance

FFEM vs. VWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Fundamental Emerging Markets ETF (FFEM) 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, FFEM achieves a 23.20% return, which is significantly higher than VWO's 9.41% return.

FFEM

• 1D: 0.59%
• 1M: -2.11%
• 6M: 12.60%
• YTD: 23.20%
• 1Y: 46.94%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 29.60%

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)
FFEM Fidelity Fundamental Emerging Markets ETF	$1.53M	$1.01M	$840.57K
VWO Vanguard FTSE Emerging Markets ETF	$386.61M	$469.40M	$499.89M

FFEM vs. VWO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
FFEM Fidelity Fundamental Emerging Markets ETF	23.20%	40.03%	-10.18%
VWO Vanguard FTSE Emerging Markets ETF	9.41%	25.60%	-1.00%

Correlation

The correlation between FFEM and VWO is 0.92, 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.	0.92
Correlation (All Time) Calculated using the full available price history since Nov 21, 2024	0.93

The correlation between FFEM and VWO has been stable across timeframes, ranging from 0.92 to 0.93 - a consistent structural relationship.

Return for Risk

FFEM vs. VWO — Risk / Return Rank

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

FFEM

FFEM Risk / Return Rank: 78
FFEM Sharpe Ratio Rank: 77
FFEM Sortino Ratio Rank: 72
FFEM Omega Ratio Rank: 77
FFEM Calmar Ratio Rank: 84
FFEM Martin Ratio Rank: 79

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.

FFEM vs. VWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Fundamental Emerging Markets ETF (FFEM) 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.

	FFEM	VWO	Difference
Sharpe ratio: Return per unit of total volatility	1.76	1.20	+0.55
Sortino ratio: Return per unit of downside risk	2.32	1.72	+0.60
Omega ratio: Gain probability vs. loss probability	1.32	1.22	+0.10
Calmar ratio: Return relative to maximum drawdown	3.17	1.89	+1.28
Martin ratio: Return relative to average drawdown	9.99	6.16	+3.83

FFEM vs. VWO - Sharpe Ratio Comparison

The current FFEM Sharpe Ratio is 1.76, which is higher than the VWO Sharpe Ratio of 1.20. The chart below compares the historical Sharpe Ratios of FFEM 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

FFEM vs. VWO - Drawdown Comparison

The maximum FFEM drawdown since its inception was -18.17%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for FFEM and VWO.

Drawdown Indicators

	FFEM	VWO	Difference
Max Drawdown Largest peak-to-trough decline	-18.17%	-67.68%	+49.51%
Max Drawdown (1Y) Largest decline over 1 year	-14.53%	-11.17%	-3.36%
Max Drawdown (3Y) Largest decline over 3 years	—	-17.37%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-30.88%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-36.39%	—
Current Drawdown Current decline from peak	-9.95%	-4.07%	-5.88%
Average Drawdown Average peak-to-trough decline	-3.90%	-15.73%	+11.83%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.60%	3.43%	+1.17%

Volatility

FFEM vs. VWO - Volatility Comparison

Fidelity Fundamental Emerging Markets ETF (FFEM) has a higher volatility of 9.93% compared to Vanguard FTSE Emerging Markets ETF (VWO) at 5.58%. This indicates that FFEM'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

	FFEM	VWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.93%	5.58%	+4.35%
Volatility (6M) Calculated over the trailing 6-month period	23.77%	15.22%	+8.55%
Volatility (1Y) Calculated over the trailing 1-year period	26.25%	17.58%	+8.67%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.05%	17.56%	+7.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.05%	19.17%	+5.88%

FFEM vs. VWO - Expense Ratio Comparison

FFEM has a 0.60% expense ratio, which is higher than VWO's 0.08% expense ratio.

Dividends

FFEM vs. VWO - Dividend Comparison

FFEM's dividend yield for the trailing twelve months is around 1.33%, less than VWO's 2.35% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FFEM Fidelity Fundamental Emerging Markets ETF	1.33%	1.59%	0.16%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VWO Vanguard FTSE Emerging Markets ETF	2.35%	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 FFEM and VWO in my portfolio?

With a correlation of 0.92, FFEM 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, FFEM or VWO?

FFEM has higher volatility (9.93%) compared to VWO (5.58%). In terms of maximum drawdown, FFEM dropped -18.17% vs VWO's -67.68%.

Which ETF is better, FFEM or VWO?

On 1-year performance, FFEM leads with 46.94% vs 21.69% 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, FFEM or VWO?

Over the 1-year period, FFEM has performed better with a 46.94% return vs 21.69%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FFEM or VWO?

VWO is cheaper with a 0.08% expense ratio, compared with 0.60% for FFEM.

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

VWO has the higher dividend yield at 2.35%, compared with 1.33% for FFEM.

What is the main difference between FFEM and VWO?

They also come from different issuers: Fidelity and Vanguard. Their fees differ too: 0.60% for FFEM and 0.08% for VWO.

Which has better risk-adjusted returns?

FFEM currently has the higher Sharpe Ratio (1.76 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.