NEWFX vs. VT

Last updated Aug 1, 2026

NEWFX (American Funds New World Fund) and VT (Vanguard Total World Stock ETF) are both funds - NEWFX is a Emerging Markets Equities fund managed by American Funds, while VT is a Global Equities fund tracking the FTSE Global All Cap Index. Over the past 10 years, NEWFX returned 9.96%/yr vs 12.39%/yr for VT. Their correlation of 0.89 means they have usually moved in the same direction. NEWFX charges 0.96%/yr vs 0.06%/yr for VT.

Performance

NEWFX vs. VT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds New World Fund (NEWFX) and Vanguard Total World Stock ETF (VT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with NEWFX having a 11.63% return and VT slightly lower at 11.15%. Over the past 10 years, NEWFX has underperformed VT with an annualized return of 9.96%, while VT has yielded a comparatively higher 12.39% annualized return.

NEWFX

• 1D: 3.30%
• 1M: -1.65%
• 6M: 5.36%
• YTD: 11.63%
• 1Y: 26.28%
• 3Y*: 15.03%
• 5Y*: 6.10%
• 10Y*: 9.96%
• ALL TIME*: 8.38%

VT

• 1D: 0.26%
• 1M: -0.20%
• 6M: 7.80%
• YTD: 11.15%
• 1Y: 23.51%
• 3Y*: 18.19%
• 5Y*: 10.58%
• 10Y*: 12.39%
• ALL TIME*: 8.81%

*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)
NEWFX American Funds New World Fund	$0.00	$0.00	$0.00
VT Vanguard Total World Stock ETF	$425.08M	$369.63M	$481.55M

NEWFX vs. VT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NEWFX American Funds New World Fund	11.63%	28.16%	6.45%	15.75%	-22.08%	4.69%	24.79%	27.51%	-12.32%	32.56%
VT Vanguard Total World Stock ETF	11.15%	22.43%	16.49%	22.02%	-18.00%	18.27%	16.59%	26.81%	-9.76%	24.50%

Correlation

The correlation between NEWFX and VT is 0.84, 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.	0.84
Correlation (3Y) Balances recent behavior with more history.	0.86
Correlation (5Y) Shows whether the relationship held over a longer period.	0.89
Correlation (10Y) Provides a long-term view across more market conditions.	0.89
Correlation (All Time) Calculated using the full available price history since Jun 26, 2008	0.89

The correlation between NEWFX and VT has been stable across timeframes, ranging from 0.84 to 0.89 - a consistent structural relationship.

Return for Risk

NEWFX vs. VT — Risk / Return Rank

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

NEWFX

NEWFX Risk / Return Rank: 53
NEWFX Sharpe Ratio Rank: 54
NEWFX Sortino Ratio Rank: 52
NEWFX Omega Ratio Rank: 57
NEWFX Calmar Ratio Rank: 52
NEWFX Martin Ratio Rank: 50

VT

VT Risk / Return Rank: 70
VT Sharpe Ratio Rank: 71
VT Sortino Ratio Rank: 69
VT Omega Ratio Rank: 69
VT Calmar Ratio Rank: 67
VT Martin Ratio Rank: 76

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.

NEWFX vs. VT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds New World Fund (NEWFX) and Vanguard Total World Stock ETF (VT). 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.

	NEWFX	VT	Difference
Sharpe ratio: Return per unit of total volatility	1.36	1.59	-0.22
Sortino ratio: Return per unit of downside risk	1.92	2.23	-0.32
Omega ratio: Gain probability vs. loss probability	1.26	1.29	-0.03
Calmar ratio: Return relative to maximum drawdown	1.86	2.29	-0.44
Martin ratio: Return relative to average drawdown	6.73	9.54	-2.80

NEWFX vs. VT - Sharpe Ratio Comparison

The current NEWFX Sharpe Ratio is 1.36, which is comparable to the VT Sharpe Ratio of 1.59. The chart below compares the historical Sharpe Ratios of NEWFX and VT, 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

NEWFX vs. VT - Drawdown Comparison

The maximum NEWFX drawdown since its inception was -56.71%, which is greater than VT's maximum drawdown of -50.27%. Use the drawdown chart below to compare losses from any high point for NEWFX and VT.

Drawdown Indicators

	NEWFX	VT	Difference
Max Drawdown Largest peak-to-trough decline	-56.71%	-50.27%	-6.44%
Max Drawdown (1Y) Largest decline over 1 year	-13.03%	-9.67%	-3.36%
Max Drawdown (3Y) Largest decline over 3 years	-15.18%	-16.51%	+1.33%
Max Drawdown (5Y) Largest decline over 5 years	-33.68%	-26.38%	-7.30%
Max Drawdown (10Y) Largest decline over 10 years	-33.68%	-34.24%	+0.56%
Current Drawdown Current decline from peak	-5.88%	-1.84%	-4.04%
Average Drawdown Average peak-to-trough decline	-11.69%	-6.97%	-4.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.59%	2.32%	+1.27%

Volatility

NEWFX vs. VT - Volatility Comparison

American Funds New World Fund (NEWFX) has a higher volatility of 7.07% compared to Vanguard Total World Stock ETF (VT) at 3.99%. This indicates that NEWFX's price experiences larger fluctuations and is considered to be riskier than VT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NEWFX	VT	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.07%	3.99%	+3.08%
Volatility (6M) Calculated over the trailing 6-month period	15.91%	11.68%	+4.23%
Volatility (1Y) Calculated over the trailing 1-year period	17.73%	13.96%	+3.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.97%	16.22%	-0.25%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.33%	17.18%	-0.85%

NEWFX vs. VT - Expense Ratio Comparison

NEWFX has a 0.96% expense ratio, which is higher than VT's 0.06% expense ratio.

Dividends

NEWFX vs. VT - Dividend Comparison

NEWFX's dividend yield for the trailing twelve months is around 5.11%, more than VT's 1.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NEWFX American Funds New World Fund	5.11%	5.71%	3.66%	2.46%	0.89%	6.89%	0.10%	3.65%	2.26%	1.90%	0.92%	0.60%
VT Vanguard Total World Stock ETF	1.59%	1.82%	1.95%	2.08%	2.20%	1.82%	1.66%	2.32%	2.53%	2.11%	2.39%	2.45%

Frequently Asked Questions

Can I hold both NEWFX and VT in my portfolio?

NEWFX and VT have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NEWFX or VT?

NEWFX has higher volatility (7.07%) compared to VT (3.99%). In terms of maximum drawdown, NEWFX dropped -56.71% vs VT's -50.27%.

Which has better risk-adjusted returns?

VT currently has the higher Sharpe Ratio (1.59 vs 1.36), 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.