PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan
IXG vs. VWO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IXG vs. VWO

Last updated Jun 14, 2026

IXG (iShares Global Financials ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both exchange-traded funds - IXG is a Financials Equities fund tracking the S&P Global Financials Sector Index, while VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index. Both are passively managed. Over the past 10 years, IXG returned 12.87%/yr vs 9.00%/yr for VWO. A 0.72 correlation means they provide meaningful diversification when combined. IXG charges 0.46%/yr vs 0.08%/yr for VWO.

Performance

IXG vs. VWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Global Financials ETF (IXG) and Vanguard FTSE Emerging Markets ETF (VWO). The values are adjusted to include any dividend payments, if applicable.

Loading charts...

Returns By Period

In the year-to-date period, IXG achieves a 3.78% return, which is significantly lower than VWO's 10.77% return. Over the past 10 years, IXG has outperformed VWO with an annualized return of 12.87%, while VWO has yielded a comparatively lower 9.00% annualized return.

IXG

1D
1.28%
1M
4.62%
YTD
3.78%
6M
4.96%
1Y
19.03%
3Y*
23.67%
5Y*
12.27%
10Y*
12.87%

VWO

1D
0.76%
1M
1.90%
YTD
10.77%
6M
12.57%
1Y
26.52%
3Y*
16.61%
5Y*
5.03%
10Y*
9.00%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IXG vs. VWO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IXG
iShares Global Financials ETF		3.78%28.54%25.69%14.97%-8.97%25.07%-2.99%24.60%-16.33%23.78%
VWO
Vanguard FTSE Emerging Markets ETF		10.77%25.60%10.59%9.25%-17.98%1.26%15.17%20.75%-14.76%31.49%

Correlation

The correlation between IXG and VWO is 0.56, 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

0.56

Correlation (3Y)
Calculated over the trailing 3-year period

0.57

Correlation (5Y)
Calculated over the trailing 5-year period

0.62

Correlation (10Y)
Calculated over the trailing 10-year period

0.64

Correlation (All Time)
Calculated using the full available price history since Mar 10, 2005

0.72

The correlation between IXG and VWO shifts across timeframes, from 0.56 (1 year) to 0.72 (all time), reflecting how their relationship changes across market environments.

IXG vs. VWO - Sectors Allocation Comparison

Sectors
IXG
VWO

Financial Services

97.9%
19.5%

Technology

1.1%
29.6%

Industrials

0.2%
8.0%

Energy

0.1%
4.6%

Healthcare

0.1%
3.9%

Consumer Cyclical

0.0%
10.7%

Basic Materials

-

8.0%

Communication Services

-

7.1%

Consumer Defensive

-

3.7%

Real Estate

-

2.2%

Utilities

-

2.9%

Financial Services

IXG
97.9%
VWO
19.5%

Technology

IXG
1.1%
VWO
29.6%

Industrials

IXG
0.2%
VWO
8.0%

Energy

IXG
0.1%
VWO
4.6%

Healthcare

IXG
0.1%
VWO
3.9%

Consumer Cyclical

IXG
0.0%
VWO
10.7%

Basic Materials

IXG

-

VWO
8.0%

Communication Services

IXG

-

VWO
7.1%

Consumer Defensive

IXG

-

VWO
3.7%

Real Estate

IXG

-

VWO
2.2%

Utilities

IXG

-

VWO
2.9%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares Global Financials ETF

Vanguard FTSE Emerging Markets ETF

Often compared with IXG:
IXG vs. XLFIXG vs. IYGIXG vs. IYFIXG vs. VFHIXG vs. WFIN.ASIXG vs. FXOIXG vs. KBWB
Often compared with VWO:
VWO vs. VEAVWO vs. IEMGVWO vs. VXUSVWO vs. EEMVWO vs. VOOVWO vs. VTIVWO vs. VEMAX

Return for Risk

IXG vs. VWO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IXG
IXG Risk / Return Rank: 3737
Overall Rank
IXG Sharpe Ratio Rank: 3838
Sharpe Ratio Rank
IXG Sortino Ratio Rank: 3838
Sortino Ratio Rank
IXG Omega Ratio Rank: 3535
Omega Ratio Rank
IXG Calmar Ratio Rank: 3434
Calmar Ratio Rank
IXG Martin Ratio Rank: 3838
Martin Ratio Rank
VWO
VWO Risk / Return Rank: 5050
Overall Rank
VWO Sharpe Ratio Rank: 4949
Sharpe Ratio Rank
VWO Sortino Ratio Rank: 4747
Sortino Ratio Rank
VWO Omega Ratio Rank: 5151
Omega Ratio Rank
VWO Calmar Ratio Rank: 5050
Calmar Ratio Rank
VWO Martin Ratio Rank: 5252
Martin Ratio Rank
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.

IXG vs. VWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Global Financials ETF (IXG) 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.

IXGVWODifference
Sharpe ratioReturn per unit of total volatility
1.20
1.49

-0.29

Sortino ratioReturn per unit of downside risk
1.78
2.10

-0.32

Omega ratioGain probability vs. loss probability

1.21

1.28

-0.07

Calmar ratioReturn relative to maximum drawdown

1.49

2.21

-0.72

Martin ratioReturn relative to average drawdown

5.26

7.80

-2.55

IXG vs. VWO - Sharpe Ratio Comparison

The current IXG Sharpe Ratio is 1.20, which is comparable to the VWO Sharpe Ratio of 1.49. The chart below compares the historical Sharpe Ratios of IXG 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.

Loading charts...

Drawdowns

IXG vs. VWO - Drawdown Comparison

The maximum IXG drawdown since its inception was -78.42%, which is greater than VWO's maximum drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for IXG and VWO.

Loading charts...

Drawdown Indicators

IXGVWODifference

Max Drawdown

Largest peak-to-trough decline

-78.42%

-67.68%

-10.74%

Max Drawdown (1Y)

Largest decline over 1 year

-11.33%

-11.17%

-0.16%

Max Drawdown (3Y)

Largest decline over 3 years

-13.54%

-17.37%

+3.83%

Max Drawdown (5Y)

Largest decline over 5 years

-27.20%

-32.60%

+5.40%

Max Drawdown (10Y)

Largest decline over 10 years

-43.47%

-36.39%

-7.08%

Current Drawdown

Current decline from peak

0.00%

-2.68%

+2.68%

Average Drawdown

Average peak-to-trough decline

-19.73%

-15.80%

-3.93%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.21%

3.17%

+0.04%

Volatility

IXG vs. VWO - Volatility Comparison

The current volatility for iShares Global Financials ETF (IXG) is 4.30%, while Vanguard FTSE Emerging Markets ETF (VWO) has a volatility of 6.64%. This indicates that IXG experiences smaller price fluctuations and is considered to be less risky than VWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Loading charts...

Volatility by Period

IXGVWODifference

Volatility (1M)

Calculated over the trailing 1-month period

4.30%

6.64%

-2.34%

Volatility (6M)

Calculated over the trailing 6-month period

11.30%

14.04%

-2.74%

Volatility (1Y)

Calculated over the trailing 1-year period

14.01%

16.54%

-2.53%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.38%

17.48%

-0.10%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

20.12%

19.22%

+0.90%

IXG vs. VWO - Expense Ratio Comparison

IXG has a 0.46% expense ratio, which is higher than VWO's 0.08% expense ratio.

Dividends

IXG vs. VWO - Dividend Comparison

IXG's dividend yield for the trailing twelve months is around 1.97%, less than VWO's 2.44% yield.

PositionTTM20252024202320222021202020192018201720162015
IXG
iShares Global Financials ETF		1.97%2.04%2.64%2.62%3.71%1.69%2.13%2.87%3.14%2.12%2.21%2.79%
VWO
Vanguard FTSE Emerging Markets ETF		2.44%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

IXG and VWO have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VWO has higher volatility (6.64%) compared to IXG (4.30%). In terms of maximum drawdown, IXG dropped -78.42% vs VWO's -67.68%.

On 10-year performance, IXG leads with 12.87% vs 9.00% for VWO. On fees, VWO is cheaper at 0.08% per year. On volatility, IXG has been the lower-risk option at 4.30%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, IXG has performed better with a 12.87% return vs 9.00%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VWO is cheaper with a 0.08% expense ratio, compared with 0.46% for IXG.

VWO has the higher dividend yield at 2.44%, compared with 1.97% for IXG.

IXG is categorized as Financials Equities, while VWO is Emerging Markets Equities. IXG tracks S&P Global Financials Sector Index, while VWO tracks FTSE Emerging Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.46% for IXG and 0.08% for VWO.

VWO currently has the higher Sharpe Ratio (1.49 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.

Portfolio Optimizer

Find the right allocation for IXG and VWO

Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.

Open Portfolio Optimizer