ILF vs. VWO

Last updated Jun 23, 2026

ILF (iShares Latin American 40 ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both exchange-traded funds - ILF is a Latin America Equities fund tracking the S&P Latin America 40 Index, while VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index. Both are passively managed. Over the past 10 years, ILF returned 8.49%/yr vs 9.31%/yr for VWO. A 0.79 correlation means they provide meaningful diversification when combined. ILF charges 0.48%/yr vs 0.08%/yr for VWO.

Performance

ILF vs. VWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Latin American 40 ETF (ILF) 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, ILF achieves a 13.05% return, which is significantly lower than VWO's 14.05% return. Over the past 10 years, ILF has underperformed VWO with an annualized return of 8.49%, while VWO has yielded a comparatively higher 9.31% annualized return.

ILF

• 1D: 0.27%
• 1M: -1.45%
• YTD: 13.05%
• 6M: 14.29%
• 1Y: 40.46%
• 3Y*: 13.51%
• 5Y*: 9.00%
• 10Y*: 8.49%

VWO

• 1D: 0.77%
• 1M: 3.96%
• YTD: 14.05%
• 6M: 14.71%
• 1Y: 32.13%
• 3Y*: 18.64%
• 5Y*: 5.90%
• 10Y*: 9.31%

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

ILF vs. VWO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ILF iShares Latin American 40 ETF	13.05%	52.65%	-23.11%	33.14%	9.81%	-13.59%	-11.71%	13.77%	-6.85%	26.33%
VWO Vanguard FTSE Emerging Markets ETF	14.05%	25.60%	10.59%	9.25%	-17.98%	1.26%	15.17%	20.75%	-14.76%	31.49%

Correlation

The correlation between ILF and VWO is 0.67, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.67
Correlation (3Y) Calculated over the trailing 3-year period	0.67
Correlation (5Y) Calculated over the trailing 5-year period	0.64
Correlation (10Y) Calculated over the trailing 10-year period	0.69
Correlation (All Time) Calculated using the full available price history since Mar 10, 2005	0.79

The correlation between ILF and VWO shifts across timeframes, from 0.64 (5 years) to 0.79 (all time), reflecting how their relationship changes across market environments.

ILF vs. VWO - Sectors Allocation Comparison

Sectors	ILF	VWO
Financial Services	33.3%	16.8%
Basic Materials	24.0%	7.0%
Energy	12.0%	3.6%
Consumer Defensive	9.5%	3.1%
Industrials	9.3%	6.8%
Utilities	4.4%	2.4%
Communication Services	4.4%	5.8%
Consumer Cyclical	1.3%	8.7%
Healthcare	1.1%	3.4%
Real Estate	0.8%	1.8%
Technology	-	31.6%

Return for Risk

ILF vs. VWO — Risk / Return Rank

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

ILF

ILF Risk / Return Rank: 54
ILF Sharpe Ratio Rank: 56
ILF Sortino Ratio Rank: 52
ILF Omega Ratio Rank: 51
ILF Calmar Ratio Rank: 61
ILF Martin Ratio Rank: 51

VWO

VWO Risk / Return Rank: 60
VWO Sharpe Ratio Rank: 60
VWO Sortino Ratio Rank: 58
VWO Omega Ratio Rank: 61
VWO Calmar Ratio Rank: 60
VWO Martin Ratio Rank: 59

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.

ILF vs. VWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Latin American 40 ETF (ILF) 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.

	ILF	VWO	Difference
Sharpe ratio: Return per unit of total volatility	1.83	1.94	-0.11
Sortino ratio: Return per unit of downside risk	2.44	2.66	-0.21
Omega ratio: Gain probability vs. loss probability	1.31	1.36	-0.05
Calmar ratio: Return relative to maximum drawdown	2.92	2.89	+0.03
Martin ratio: Return relative to average drawdown	8.56	10.19	-1.64

ILF vs. VWO - Sharpe Ratio Comparison

The current ILF Sharpe Ratio is 1.83, which is comparable to the VWO Sharpe Ratio of 1.94. The chart below compares the historical Sharpe Ratios of ILF 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

ILF vs. VWO - Drawdown Comparison

The maximum ILF drawdown since its inception was -67.48%, roughly equal to the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for ILF and VWO.

Drawdown Indicators

	ILF	VWO	Difference
Max Drawdown Largest peak-to-trough decline	-67.48%	-67.68%	+0.20%
Max Drawdown (1Y) Largest decline over 1 year	-13.94%	-11.17%	-2.77%
Max Drawdown (3Y) Largest decline over 3 years	-23.97%	-17.37%	-6.60%
Max Drawdown (5Y) Largest decline over 5 years	-29.71%	-32.60%	+2.89%
Max Drawdown (10Y) Largest decline over 10 years	-57.79%	-36.39%	-21.40%
Current Drawdown Current decline from peak	-9.65%	0.00%	-9.65%
Average Drawdown Average peak-to-trough decline	-23.91%	-15.79%	-8.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.74%	3.16%	+1.58%

Volatility

ILF vs. VWO - Volatility Comparison

iShares Latin American 40 ETF (ILF) and Vanguard FTSE Emerging Markets ETF (VWO) have volatilities of 6.44% and 6.57%, 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

	ILF	VWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.44%	6.57%	-0.13%
Volatility (6M) Calculated over the trailing 6-month period	18.33%	14.28%	+4.05%
Volatility (1Y) Calculated over the trailing 1-year period	22.25%	16.67%	+5.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.28%	17.53%	+5.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	28.40%	19.24%	+9.16%

ILF vs. VWO - Expense Ratio Comparison

ILF has a 0.48% expense ratio, which is higher than VWO's 0.08% expense ratio.

Dividends

ILF vs. VWO - Dividend Comparison

ILF's dividend yield for the trailing twelve months is around 3.47%, more than VWO's 2.26% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ILF iShares Latin American 40 ETF	3.47%	4.39%	7.44%	4.61%	12.72%	8.47%	1.88%	3.09%	3.12%	1.80%	1.59%	3.25%
VWO Vanguard FTSE Emerging Markets ETF	2.26%	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 ILF and VWO in my portfolio?

ILF and VWO have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ILF or VWO?

VWO has higher volatility (6.57%) compared to ILF (6.44%). In terms of maximum drawdown, ILF dropped -67.48% vs VWO's -67.68%.

Which ETF is better, ILF or VWO?

On 10-year performance, VWO leads with 9.31% vs 8.49% for ILF. On fees, VWO is cheaper at 0.08% per year. On volatility, ILF has been the lower-risk option at 6.44%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ILF or VWO?

Over the 10-year period, VWO has performed better with a 9.31% return vs 8.49%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ILF or VWO?

VWO is cheaper with a 0.08% expense ratio, compared with 0.48% for ILF.

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

ILF has the higher dividend yield at 3.47%, compared with 2.26% for VWO.

What is the main difference between ILF and VWO?

ILF is categorized as Latin America Equities, while VWO is Emerging Markets Equities. ILF tracks S&P Latin America 40 Index, while VWO tracks FTSE Emerging Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.48% for ILF and 0.08% for VWO.

Which has better risk-adjusted returns?

VWO currently has the higher Sharpe Ratio (1.94 vs 1.83), 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.