TDEC vs. VWO

Last updated Jun 24, 2026

TDEC (FT Vest Emerging Markets Buffer ETF - December) and VWO (Vanguard FTSE Emerging Markets ETF) are both exchange-traded funds - TDEC is a Defined Outcome fund tracking the MSCI Emerging Markets, while VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index. Both are passively managed. Over the past year, TDEC returned 20.35% vs 27.03% for VWO. Their correlation of 0.93 suggests significant overlap in exposure. TDEC charges 0.95%/yr vs 0.08%/yr for VWO.

Performance

TDEC vs. VWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FT Vest Emerging Markets Buffer ETF - December (TDEC) 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, TDEC achieves a 7.66% return, which is significantly lower than VWO's 10.55% return.

TDEC

• 1D: -2.13%
• 1M: -0.09%
• YTD: 7.66%
• 6M: 8.74%
• 1Y: 20.35%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VWO

• 1D: -3.07%
• 1M: 0.76%
• YTD: 10.55%
• 6M: 10.67%
• 1Y: 27.03%
• 3Y*: 17.42%
• 5Y*: 5.09%
• 10Y*: 8.97%

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

TDEC vs. VWO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
TDEC FT Vest Emerging Markets Buffer ETF - December	7.66%	21.39%	-0.75%
VWO Vanguard FTSE Emerging Markets ETF	10.55%	25.60%	-0.81%

Correlation

The correlation between TDEC and VWO is 0.90, 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	0.90
Correlation (All Time) Calculated using the full available price history since Dec 23, 2024	0.93

The correlation between TDEC and VWO has been stable across timeframes, ranging from 0.90 to 0.93 - a consistent structural relationship.

Return for Risk

TDEC vs. VWO — Risk / Return Rank

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

TDEC

TDEC Risk / Return Rank: 65
TDEC Sharpe Ratio Rank: 64
TDEC Sortino Ratio Rank: 62
TDEC Omega Ratio Rank: 79
TDEC Calmar Ratio Rank: 55
TDEC Martin Ratio Rank: 65

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: 51
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.

TDEC vs. VWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FT Vest Emerging Markets Buffer ETF - December (TDEC) 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.

	TDEC	VWO	Difference
Sharpe ratio: Return per unit of total volatility	1.91	1.60	+0.31
Sortino ratio: Return per unit of downside risk	2.63	2.22	+0.41
Omega ratio: Gain probability vs. loss probability	1.43	1.30	+0.13
Calmar ratio: Return relative to maximum drawdown	2.51	2.43	+0.07
Martin ratio: Return relative to average drawdown	10.81	8.56	+2.25

TDEC vs. VWO - Sharpe Ratio Comparison

The current TDEC Sharpe Ratio is 1.91, which is comparable to the VWO Sharpe Ratio of 1.60. The chart below compares the historical Sharpe Ratios of TDEC 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

TDEC vs. VWO - Drawdown Comparison

The maximum TDEC drawdown since its inception was -10.30%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for TDEC and VWO.

Drawdown Indicators

	TDEC	VWO	Difference
Max Drawdown Largest peak-to-trough decline	-10.30%	-67.68%	+57.38%
Max Drawdown (1Y) Largest decline over 1 year	-8.16%	-11.17%	+3.01%
Max Drawdown (3Y) Largest decline over 3 years	—	-17.37%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-32.60%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-36.39%	—
Current Drawdown Current decline from peak	-2.13%	-3.07%	+0.94%
Average Drawdown Average peak-to-trough decline	-1.05%	-15.79%	+14.74%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.89%	3.17%	-1.28%

Volatility

TDEC vs. VWO - Volatility Comparison

The current volatility for FT Vest Emerging Markets Buffer ETF - December (TDEC) is 4.52%, while Vanguard FTSE Emerging Markets ETF (VWO) has a volatility of 7.37%. This indicates that TDEC 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.

Volatility by Period

	TDEC	VWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.52%	7.37%	-2.85%
Volatility (6M) Calculated over the trailing 6-month period	9.98%	14.62%	-4.64%
Volatility (1Y) Calculated over the trailing 1-year period	10.71%	16.94%	-6.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.03%	17.58%	-5.55%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.03%	19.18%	-7.15%

TDEC vs. VWO - Expense Ratio Comparison

TDEC has a 0.95% expense ratio, which is higher than VWO's 0.08% expense ratio.

Dividends

TDEC vs. VWO - Dividend Comparison

TDEC has not paid dividends to shareholders, while VWO's dividend yield for the trailing twelve months is around 2.33%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TDEC FT Vest Emerging Markets Buffer ETF - December	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VWO Vanguard FTSE Emerging Markets ETF	2.33%	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 TDEC and VWO in my portfolio?

With a correlation of 0.90, TDEC 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, TDEC or VWO?

VWO has higher volatility (7.37%) compared to TDEC (4.52%). In terms of maximum drawdown, TDEC dropped -10.30% vs VWO's -67.68%.

Which ETF is better, TDEC or VWO?

On 1-year performance, VWO leads with 27.03% vs 20.35% for TDEC. On fees, VWO is cheaper at 0.08% per year. On volatility, TDEC has been the lower-risk option at 4.52%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TDEC or VWO?

Over the 1-year period, VWO has performed better with a 27.03% return vs 20.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TDEC or VWO?

VWO is cheaper with a 0.08% expense ratio, compared with 0.95% for TDEC.

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

VWO has the higher dividend yield at 2.33%, compared with 0.00% for TDEC.

What is the main difference between TDEC and VWO?

TDEC is categorized as Defined Outcome, while VWO is Emerging Markets Equities. TDEC tracks MSCI Emerging Markets, while VWO tracks FTSE Emerging Index. They also come from different issuers: FT Vest and Vanguard. Their fees differ too: 0.95% for TDEC and 0.08% for VWO.

Which has better risk-adjusted returns?

TDEC currently has the higher Sharpe Ratio (1.91 vs 1.60), 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.