FNWFX vs. VEMAX

Last updated Jun 3, 2026

FNWFX (American Funds New World Fund Class F-3) and VEMAX (Vanguard Emerging Markets Stock Index Fund Admiral Shares) are both mutual funds - FNWFX is a Emerging Markets Diversified fund managed by American Funds, while VEMAX is a Emerging Markets Equities fund managed by Vanguard. Over the past 5 years, FNWFX returned 7.03%/yr vs 5.09%/yr for VEMAX. Their correlation of 0.89 suggests significant overlap in exposure. FNWFX charges 0.57%/yr vs 0.14%/yr for VEMAX.

Performance

FNWFX vs. VEMAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds New World Fund Class F-3 (FNWFX) and Vanguard Emerging Markets Stock Index Fund Admiral Shares (VEMAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FNWFX achieves a 16.80% return, which is significantly higher than VEMAX's 12.19% return.

FNWFX

• 1D: 0.39%
• 1M: 7.07%
• YTD: 16.80%
• 6M: 18.71%
• 1Y: 35.93%
• 3Y*: 19.67%
• 5Y*: 7.03%
• 10Y*: —

VEMAX

• 1D: 0.87%
• 1M: 2.84%
• YTD: 12.19%
• 6M: 13.59%
• 1Y: 30.88%
• 3Y*: 18.01%
• 5Y*: 5.09%
• 10Y*: 8.86%

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

FNWFX vs. VEMAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FNWFX American Funds New World Fund Class F-3	16.80%	28.67%	6.88%	16.24%	-21.77%	5.09%	25.30%	28.02%	-12.00%	25.87%
VEMAX Vanguard Emerging Markets Stock Index Fund Admiral Shares	12.19%	24.76%	11.34%	8.82%	-17.79%	0.85%	15.24%	20.29%	-14.59%	24.43%

Correlation

The correlation between FNWFX and VEMAX is 0.88, 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	0.88
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.87
Correlation (All Time) Calculated using the full available price history since Feb 2, 2017	0.89

The correlation between FNWFX and VEMAX has been stable across timeframes, ranging from 0.87 to 0.89 - a consistent structural relationship.

Return for Risk

FNWFX vs. VEMAX — Risk / Return Rank

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

FNWFX

FNWFX Risk / Return Rank: 65
FNWFX Sharpe Ratio Rank: 75
FNWFX Sortino Ratio Rank: 71
FNWFX Omega Ratio Rank: 72
FNWFX Calmar Ratio Rank: 52
FNWFX Martin Ratio Rank: 57

VEMAX

VEMAX Risk / Return Rank: 53
VEMAX Sharpe Ratio Rank: 57
VEMAX Sortino Ratio Rank: 53
VEMAX Omega Ratio Rank: 54
VEMAX Calmar Ratio Rank: 51
VEMAX Martin Ratio Rank: 49

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.

FNWFX vs. VEMAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds New World Fund Class F-3 (FNWFX) and Vanguard Emerging Markets Stock Index Fund Admiral Shares (VEMAX). 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.

	FNWFX	VEMAX	Difference
Sharpe ratio Return per unit of total volatility	2.52	2.24	+0.28
Sortino ratio Return per unit of downside risk	3.51	3.08	+0.43
Omega ratio Gain probability vs. loss probability	1.48	1.41	+0.07
Calmar ratio Return relative to maximum drawdown	2.79	2.75	+0.04
Martin ratio Return relative to average drawdown	11.50	10.28	+1.22
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FNWFX vs. VEMAX - Sharpe Ratio Comparison

The current FNWFX Sharpe Ratio is 2.52, which is comparable to the VEMAX Sharpe Ratio of 2.24. The chart below compares the historical Sharpe Ratios of FNWFX and VEMAX, 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

	FNWFX	VEMAX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.52	2.24	+0.28
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.46	0.33	+0.13
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.54	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.69	0.29	+0.40

Drawdowns

FNWFX vs. VEMAX - Drawdown Comparison

The maximum FNWFX drawdown since its inception was -33.40%, smaller than the maximum VEMAX drawdown of -66.45%. Use the drawdown chart below to compare losses from any high point for FNWFX and VEMAX.

Drawdown Indicators

	FNWFX	VEMAX	Difference
Max Drawdown Largest peak-to-trough decline	-33.40%	-66.45%	+33.05%
Max Drawdown (1Y) Largest decline over 1 year	-13.00%	-11.05%	-1.95%
Max Drawdown (3Y) Largest decline over 3 years	-15.00%	-15.78%	+0.78%
Max Drawdown (5Y) Largest decline over 5 years	-33.40%	-32.55%	-0.85%
Max Drawdown (10Y) Largest decline over 10 years	—	-36.11%	—
Current Drawdown Current decline from peak	0.00%	-0.44%	+0.44%
Average Drawdown Average peak-to-trough decline	-8.68%	-16.13%	+7.45%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.16%	2.96%	+0.20%

Volatility

FNWFX vs. VEMAX - Volatility Comparison

American Funds New World Fund Class F-3 (FNWFX) has a higher volatility of 5.50% compared to Vanguard Emerging Markets Stock Index Fund Admiral Shares (VEMAX) at 4.80%. This indicates that FNWFX's price experiences larger fluctuations and is considered to be riskier than VEMAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FNWFX	VEMAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.50%	4.80%	+0.70%
Volatility (6M) Calculated over the trailing 6-month period	12.50%	11.71%	+0.79%
Volatility (1Y) Calculated over the trailing 1-year period	14.74%	14.27%	+0.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.42%	15.37%	+0.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.40%	16.46%	-0.06%

FNWFX vs. VEMAX - Expense Ratio Comparison

FNWFX has a 0.57% expense ratio, which is higher than VEMAX's 0.14% expense ratio.

Dividends

FNWFX vs. VEMAX - Dividend Comparison

FNWFX's dividend yield for the trailing twelve months is around 5.21%, more than VEMAX's 2.37% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FNWFX American Funds New World Fund Class F-3	5.21%	6.09%	4.10%	2.88%	1.33%	7.32%	0.43%	4.04%	2.70%	2.27%	0.00%	0.00%
VEMAX Vanguard Emerging Markets Stock Index Fund Admiral Shares	2.37%	2.74%	3.13%	3.47%	4.05%	2.57%	1.87%	3.20%	2.85%	2.31%	2.51%	3.25%

Frequently Asked Questions

Can I hold both FNWFX and VEMAX in my portfolio?

FNWFX and VEMAX have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FNWFX or VEMAX?

FNWFX has higher volatility (5.50%) compared to VEMAX (4.80%). In terms of maximum drawdown, FNWFX dropped -33.40% vs VEMAX's -66.45%.

Which has better risk-adjusted returns?

FNWFX currently has the higher Sharpe Ratio (2.52 vs 2.24), 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.