JHEM vs. VWO

Last updated Jun 17, 2026

JHEM (John Hancock Multifactor Emerging Markets ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both Emerging Markets Equities funds - JHEM tracks the John Hancock Dimensional Emerging Markets Index while VWO tracks the FTSE Emerging Index. Both are passively managed. Over the past 5 years, JHEM returned 8.23%/yr vs 5.47%/yr for VWO. With a 0.95 correlation, they move nearly in lockstep. JHEM charges 0.49%/yr vs 0.08%/yr for VWO.

Performance

JHEM vs. VWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in John Hancock Multifactor Emerging Markets ETF (JHEM) 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, JHEM achieves a 24.29% return, which is significantly higher than VWO's 11.90% return.

JHEM

• 1D: -1.84%
• 1M: 6.02%
• YTD: 24.29%
• 6M: 28.87%
• 1Y: 45.01%
• 3Y*: 20.30%
• 5Y*: 8.23%
• 10Y*: —

VWO

• 1D: -1.12%
• 1M: 2.94%
• YTD: 11.90%
• 6M: 14.70%
• 1Y: 26.64%
• 3Y*: 16.40%
• 5Y*: 5.47%
• 10Y*: 8.99%

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

JHEM vs. VWO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
JHEM John Hancock Multifactor Emerging Markets ETF	24.29%	30.49%	4.58%	12.94%	-17.90%	2.10%	11.50%	17.68%	-7.63%
VWO Vanguard FTSE Emerging Markets ETF	11.90%	25.60%	10.59%	9.25%	-17.98%	1.26%	15.17%	20.75%	-7.02%

Correlation

The correlation between JHEM and VWO is 0.93, 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	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (All Time) Calculated using the full available price history since Sep 28, 2018	0.95

The correlation between JHEM and VWO has been stable across timeframes, ranging from 0.93 to 0.96 - a consistent structural relationship.

JHEM vs. VWO - Sectors Allocation Comparison

Sectors	JHEM	VWO
Technology	33.9%	29.6%
Financial Services	20.1%	19.5%
Consumer Cyclical	10.5%	10.7%
Basic Materials	7.9%	8.0%
Industrials	7.6%	8.0%
Communication Services	6.8%	7.1%
Energy	4.4%	4.6%
Consumer Defensive	3.0%	3.7%
Healthcare	2.7%	3.9%
Utilities	2.6%	2.9%
Real Estate	0.6%	2.2%

Return for Risk

JHEM vs. VWO — Risk / Return Rank

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

JHEM

JHEM Risk / Return Rank: 74
JHEM Sharpe Ratio Rank: 74
JHEM Sortino Ratio Rank: 68
JHEM Omega Ratio Rank: 76
JHEM Calmar Ratio Rank: 76
JHEM Martin Ratio Rank: 76

VWO

VWO Risk / Return Rank: 49
VWO Sharpe Ratio Rank: 48
VWO Sortino Ratio Rank: 46
VWO Omega Ratio Rank: 49
VWO Calmar Ratio Rank: 49
VWO Martin Ratio Rank: 51

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.

JHEM vs. VWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for John Hancock Multifactor Emerging Markets ETF (JHEM) 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.

	JHEM	VWO	Difference
Sharpe ratio: Return per unit of total volatility	2.21	1.61	+0.60
Sortino ratio: Return per unit of downside risk	2.89	2.25	+0.63
Omega ratio: Gain probability vs. loss probability	1.42	1.30	+0.12
Calmar ratio: Return relative to maximum drawdown	3.67	2.40	+1.27
Martin ratio: Return relative to average drawdown	13.62	8.46	+5.16

JHEM vs. VWO - Sharpe Ratio Comparison

The current JHEM Sharpe Ratio is 2.21, which is higher than the VWO Sharpe Ratio of 1.61. The chart below compares the historical Sharpe Ratios of JHEM 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

JHEM vs. VWO - Drawdown Comparison

The maximum JHEM drawdown since its inception was -34.99%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for JHEM and VWO.

Drawdown Indicators

	JHEM	VWO	Difference
Max Drawdown Largest peak-to-trough decline	-34.99%	-67.68%	+32.69%
Max Drawdown (1Y) Largest decline over 1 year	-12.34%	-11.17%	-1.17%
Max Drawdown (3Y) Largest decline over 3 years	-18.16%	-17.37%	-0.79%
Max Drawdown (5Y) Largest decline over 5 years	-31.83%	-32.60%	+0.77%
Max Drawdown (10Y) Largest decline over 10 years	—	-36.39%	—
Current Drawdown Current decline from peak	-2.50%	-1.68%	-0.82%
Average Drawdown Average peak-to-trough decline	-9.92%	-15.80%	+5.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.32%	3.16%	+0.16%

Volatility

JHEM vs. VWO - Volatility Comparison

John Hancock Multifactor Emerging Markets ETF (JHEM) has a higher volatility of 10.21% compared to Vanguard FTSE Emerging Markets ETF (VWO) at 6.55%. This indicates that JHEM'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

	JHEM	VWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.21%	6.55%	+3.66%
Volatility (6M) Calculated over the trailing 6-month period	18.37%	14.20%	+4.17%
Volatility (1Y) Calculated over the trailing 1-year period	20.49%	16.64%	+3.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.01%	17.51%	+0.50%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.78%	19.24%	+1.54%

JHEM vs. VWO - Expense Ratio Comparison

JHEM has a 0.49% expense ratio, which is higher than VWO's 0.08% expense ratio.

Dividends

JHEM vs. VWO - Dividend Comparison

JHEM's dividend yield for the trailing twelve months is around 1.93%, less than VWO's 2.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
JHEM John Hancock Multifactor Emerging Markets ETF	1.93%	2.39%	2.93%	2.87%	2.84%	2.71%	1.67%	2.37%	0.21%	0.00%	0.00%	0.00%
VWO Vanguard FTSE Emerging Markets ETF	2.41%	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 JHEM and VWO in my portfolio?

With a correlation of 0.93, JHEM 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, JHEM or VWO?

JHEM has higher volatility (10.21%) compared to VWO (6.55%). In terms of maximum drawdown, JHEM dropped -34.99% vs VWO's -67.68%.

Which ETF is better, JHEM or VWO?

On 5-year performance, JHEM leads with 8.23% vs 5.47% for VWO. On fees, VWO is cheaper at 0.08% per year. On volatility, VWO has been the lower-risk option at 6.55%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, JHEM or VWO?

Over the 5-year period, JHEM has performed better with a 8.23% return vs 5.47%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, JHEM or VWO?

VWO is cheaper with a 0.08% expense ratio, compared with 0.49% for JHEM.

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

VWO has the higher dividend yield at 2.41%, compared with 1.93% for JHEM.

What is the main difference between JHEM and VWO?

JHEM tracks John Hancock Dimensional Emerging Markets Index, while VWO tracks FTSE Emerging Index. They also come from different issuers: Manulife and Vanguard. Their fees differ too: 0.49% for JHEM and 0.08% for VWO.

Which has better risk-adjusted returns?

JHEM currently has the higher Sharpe Ratio (2.21 vs 1.61), 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.