SPEM vs. VWO

Last updated Jun 23, 2026

SPEM (SPDR Portfolio Emerging Markets ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both Emerging Markets Equities funds - SPEM tracks the S&P Emerging BMI Index while VWO tracks the FTSE Emerging Index. Both are passively managed. Over the past 10 years, SPEM returned 9.96%/yr vs 9.31%/yr for VWO. With a 0.96 correlation, they move nearly in lockstep. SPEM charges 0.07%/yr vs 0.08%/yr for VWO.

Performance

SPEM vs. VWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR Portfolio Emerging Markets ETF (SPEM) and Vanguard FTSE Emerging Markets ETF (VWO). 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 SPEM having a 14.64% return and VWO slightly lower at 14.05%. Over the past 10 years, SPEM has outperformed VWO with an annualized return of 9.96%, while VWO has yielded a comparatively lower 9.31% annualized return.

SPEM

• 1D: 1.10%
• 1M: 4.42%
• YTD: 14.64%
• 6M: 15.36%
• 1Y: 33.19%
• 3Y*: 19.39%
• 5Y*: 6.53%
• 10Y*: 9.96%

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)

SPEM vs. VWO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SPEM SPDR Portfolio Emerging Markets ETF	14.64%	25.63%	11.40%	10.51%	-17.90%	1.51%	14.55%	19.69%	-13.26%	34.82%
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 SPEM and VWO is 0.99 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.99
Correlation (3Y) Calculated over the trailing 3-year period	0.99
Correlation (5Y) Calculated over the trailing 5-year period	1.00
Correlation (10Y) Calculated over the trailing 10-year period	0.99
Correlation (All Time) Calculated using the full available price history since Mar 23, 2007	0.96

The correlation between SPEM and VWO has been stable across timeframes, ranging from 0.96 to 0.99 - a consistent structural relationship.

SPEM vs. VWO - Sectors Allocation Comparison

Sectors	SPEM	VWO
Technology	32.1%	31.6%
Financial Services	19.2%	16.8%
Consumer Cyclical	9.6%	8.7%
Industrials	8.3%	6.8%
Basic Materials	8.0%	7.0%
Communication Services	6.7%	5.8%
Energy	4.2%	3.6%
Healthcare	3.7%	3.4%
Consumer Defensive	3.6%	3.1%
Utilities	2.8%	2.4%
Real Estate	1.8%	1.8%

Return for Risk

SPEM vs. VWO — Risk / Return Rank

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

SPEM

SPEM Risk / Return Rank: 61
SPEM Sharpe Ratio Rank: 62
SPEM Sortino Ratio Rank: 59
SPEM Omega Ratio Rank: 63
SPEM Calmar Ratio Rank: 61
SPEM Martin Ratio Rank: 60

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.

SPEM vs. VWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR Portfolio Emerging Markets ETF (SPEM) 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.

	SPEM	VWO	Difference
Sharpe ratio: Return per unit of total volatility	1.99	1.94	+0.05
Sortino ratio: Return per unit of downside risk	2.70	2.66	+0.04
Omega ratio: Gain probability vs. loss probability	1.37	1.36	+0.01
Calmar ratio: Return relative to maximum drawdown	2.93	2.89	+0.04
Martin ratio: Return relative to average drawdown	10.51	10.19	+0.32

SPEM vs. VWO - Sharpe Ratio Comparison

The current SPEM Sharpe Ratio is 1.99, which is comparable to the VWO Sharpe Ratio of 1.94. The chart below compares the historical Sharpe Ratios of SPEM 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

SPEM vs. VWO - Drawdown Comparison

The maximum SPEM drawdown since its inception was -64.41%, roughly equal to the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for SPEM and VWO.

Drawdown Indicators

	SPEM	VWO	Difference
Max Drawdown Largest peak-to-trough decline	-64.41%	-67.68%	+3.27%
Max Drawdown (1Y) Largest decline over 1 year	-11.36%	-11.17%	-0.19%
Max Drawdown (3Y) Largest decline over 3 years	-17.62%	-17.37%	-0.25%
Max Drawdown (5Y) Largest decline over 5 years	-31.75%	-32.60%	+0.85%
Max Drawdown (10Y) Largest decline over 10 years	-36.06%	-36.39%	+0.33%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-14.72%	-15.79%	+1.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.16%	3.16%	0.00%

Volatility

SPEM vs. VWO - Volatility Comparison

SPDR Portfolio Emerging Markets ETF (SPEM) and Vanguard FTSE Emerging Markets ETF (VWO) have volatilities of 6.73% 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

	SPEM	VWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.73%	6.57%	+0.16%
Volatility (6M) Calculated over the trailing 6-month period	14.43%	14.28%	+0.15%
Volatility (1Y) Calculated over the trailing 1-year period	16.77%	16.67%	+0.10%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.30%	17.53%	-0.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.84%	19.24%	-0.40%

SPEM vs. VWO - Expense Ratio Comparison

SPEM has a 0.07% expense ratio, which is lower than VWO's 0.08% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SPEM vs. VWO - Dividend Comparison

SPEM's dividend yield for the trailing twelve months is around 3.44%, more than VWO's 2.26% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPEM SPDR Portfolio Emerging Markets ETF	3.44%	2.77%	2.78%	2.80%	3.38%	3.14%	1.92%	2.94%	2.34%	1.12%	1.51%	2.40%
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 SPEM and VWO in my portfolio?

With a correlation of 0.99, SPEM 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, SPEM or VWO?

SPEM has higher volatility (6.73%) compared to VWO (6.57%). In terms of maximum drawdown, SPEM dropped -64.41% vs VWO's -67.68%.

Which ETF is better, SPEM or VWO?

On 10-year performance, SPEM leads with 9.96% vs 9.31% for VWO. On fees, SPEM is cheaper at 0.07% per year. On volatility, VWO has been the lower-risk option at 6.57%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SPEM or VWO?

Over the 10-year period, SPEM has performed better with a 9.96% return vs 9.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SPEM or VWO?

SPEM is cheaper with a 0.07% expense ratio, compared with 0.08% for VWO.

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

SPEM has the higher dividend yield at 3.44%, compared with 2.26% for VWO.

What is the main difference between SPEM and VWO?

SPEM tracks S&P Emerging BMI Index, while VWO tracks FTSE Emerging Index. They also come from different issuers: State Street and Vanguard. Their fees differ too: 0.07% for SPEM and 0.08% for VWO.

Which has better risk-adjusted returns?

SPEM currently has the higher Sharpe Ratio (1.99 vs 1.94), 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.