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TLTE vs. VWO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

TLTE vs. VWO

Last updated Jun 24, 2026

TLTE (FlexShares Morningstar Emerging Markets Factor Tilt Index) and VWO (Vanguard FTSE Emerging Markets ETF) are both exchange-traded funds - TLTE is a Foreign Large Cap Equities fund tracking the Morningstar Emerging Markets Factor Tilt Index, while VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index. Both are passively managed. Over the past 10 years, TLTE returned 9.47%/yr vs 8.97%/yr for VWO. Their correlation of 0.93 suggests significant overlap in exposure. TLTE charges 0.59%/yr vs 0.08%/yr for VWO.

Performance

TLTE vs. VWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE) and Vanguard FTSE Emerging Markets ETF (VWO). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, TLTE achieves a 20.12% return, which is significantly higher than VWO's 10.55% return. Over the past 10 years, TLTE has outperformed VWO with an annualized return of 9.47%, while VWO has yielded a comparatively lower 8.97% annualized return.

TLTE

1D
-5.06%
1M
0.90%
YTD
20.12%
6M
20.98%
1Y
39.95%
3Y*
21.14%
5Y*
7.23%
10Y*
9.47%

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)

TLTE vs. VWO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
TLTE
FlexShares Morningstar Emerging Markets Factor Tilt Index		20.12%30.21%3.53%13.62%-17.31%4.79%12.10%14.51%-17.44%32.82%
VWO
Vanguard FTSE Emerging Markets ETF		10.55%25.60%10.59%9.25%-17.98%1.26%15.17%20.75%-14.76%31.49%

Correlation

The correlation between TLTE and VWO is 0.92, 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

0.92

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

0.95

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

0.96

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

0.95

Correlation (All Time)
Calculated using the full available price history since Oct 2, 2012

0.93

The correlation between TLTE and VWO has been stable across timeframes, ranging from 0.92 to 0.96 - a consistent structural relationship.

TLTE vs. VWO - Sectors Allocation Comparison

Sectors
TLTE
VWO

Technology

33.5%
31.6%

Financial Services

17.7%
16.8%

Industrials

10.5%
6.8%

Consumer Cyclical

9.9%
8.7%

Basic Materials

7.0%
7.0%

Communication Services

4.2%
5.8%

Real Estate

4.1%
1.8%

Consumer Defensive

3.7%
3.1%

Energy

3.7%
3.6%

Utilities

2.9%
2.4%

Healthcare

2.8%
3.4%

Technology

TLTE
33.5%
VWO
31.6%

Financial Services

TLTE
17.7%
VWO
16.8%

Industrials

TLTE
10.5%
VWO
6.8%

Consumer Cyclical

TLTE
9.9%
VWO
8.7%

Basic Materials

TLTE
7.0%
VWO
7.0%

Communication Services

TLTE
4.2%
VWO
5.8%

Real Estate

TLTE
4.1%
VWO
1.8%

Consumer Defensive

TLTE
3.7%
VWO
3.1%

Energy

TLTE
3.7%
VWO
3.6%

Utilities

TLTE
2.9%
VWO
2.4%

Healthcare

TLTE
2.8%
VWO
3.4%

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FlexShares Morningstar Emerging Markets Factor Tilt Index

Vanguard FTSE Emerging Markets ETF

Often compared with TLTE:
TLTE vs. TLTTLTE vs. VtiTLTE vs. TLTDTLTE vs. TDTTTLTE vs. MPTLTE vs. VTITLTE vs. FXAIX
Often compared with VWO:
VWO vs. VEAVWO vs. IEMGVWO vs. VXUSVWO vs. EEMVWO vs. VOOVWO vs. VTIVWO vs. VEMAX

Return for Risk

TLTE vs. VWO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
TLTE
TLTE Risk / Return Rank: 6464
Overall Rank
TLTE Sharpe Ratio Rank: 6262
Sharpe Ratio Rank
TLTE Sortino Ratio Rank: 5656
Sortino Ratio Rank
TLTE Omega Ratio Rank: 6767
Omega Ratio Rank
TLTE Calmar Ratio Rank: 6666
Calmar Ratio Rank
TLTE Martin Ratio Rank: 6868
Martin Ratio Rank
VWO
VWO Risk / Return Rank: 4949
Overall Rank
VWO Sharpe Ratio Rank: 4848
Sharpe Ratio Rank
VWO Sortino Ratio Rank: 4646
Sortino Ratio Rank
VWO Omega Ratio Rank: 4949
Omega Ratio Rank
VWO Calmar Ratio Rank: 5151
Calmar Ratio Rank
VWO Martin Ratio Rank: 5151
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.

TLTE vs. VWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE) 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.

TLTEVWODifference
Sharpe ratioReturn per unit of total volatility
1.91
1.60

+0.31

Sortino ratioReturn per unit of downside risk
2.50
2.22

+0.28

Omega ratioGain probability vs. loss probability

1.37

1.30

+0.07

Calmar ratioReturn relative to maximum drawdown

3.08

2.43

+0.65

Martin ratioReturn relative to average drawdown

11.60

8.56

+3.04

TLTE vs. VWO - Sharpe Ratio Comparison

The current TLTE 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 TLTE 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.

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Drawdowns

TLTE vs. VWO - Drawdown Comparison

The maximum TLTE drawdown since its inception was -44.21%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for TLTE and VWO.

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Drawdown Indicators

TLTEVWODifference

Max Drawdown

Largest peak-to-trough decline

-44.21%

-67.68%

+23.47%

Max Drawdown (1Y)

Largest decline over 1 year

-13.04%

-11.17%

-1.87%

Max Drawdown (3Y)

Largest decline over 3 years

-17.43%

-17.37%

-0.06%

Max Drawdown (5Y)

Largest decline over 5 years

-32.65%

-32.60%

-0.05%

Max Drawdown (10Y)

Largest decline over 10 years

-44.21%

-36.39%

-7.82%

Current Drawdown

Current decline from peak

-5.06%

-3.07%

-1.99%

Average Drawdown

Average peak-to-trough decline

-12.12%

-15.79%

+3.67%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.45%

3.17%

+0.28%

Volatility

TLTE vs. VWO - Volatility Comparison

FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE) has a higher volatility of 11.78% compared to Vanguard FTSE Emerging Markets ETF (VWO) at 7.37%. This indicates that TLTE'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.

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Volatility by Period

TLTEVWODifference

Volatility (1M)

Calculated over the trailing 1-month period

11.78%

7.37%

+4.41%

Volatility (6M)

Calculated over the trailing 6-month period

19.21%

14.62%

+4.59%

Volatility (1Y)

Calculated over the trailing 1-year period

21.00%

16.94%

+4.06%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.45%

17.58%

-0.13%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

18.60%

19.18%

-0.58%

TLTE vs. VWO - Expense Ratio Comparison

TLTE has a 0.59% expense ratio, which is higher than VWO's 0.08% expense ratio.

Dividends

TLTE vs. VWO - Dividend Comparison

TLTE's dividend yield for the trailing twelve months is around 3.26%, more than VWO's 2.33% yield.

PositionTTM20252024202320222021202020192018201720162015
TLTE
FlexShares Morningstar Emerging Markets Factor Tilt Index		3.26%3.76%3.73%4.03%4.42%3.21%1.95%3.23%3.02%2.12%2.30%2.00%
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

With a correlation of 0.92, TLTE 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.

TLTE has higher volatility (11.78%) compared to VWO (7.37%). In terms of maximum drawdown, TLTE dropped -44.21% vs VWO's -67.68%.

On 10-year performance, TLTE leads with 9.47% vs 8.97% for VWO. On fees, VWO is cheaper at 0.08% per year. On volatility, VWO has been the lower-risk option at 7.37%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, TLTE has performed better with a 9.47% return vs 8.97%. 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 0.59% for TLTE.

TLTE has the higher dividend yield at 3.26%, compared with 2.33% for VWO.

TLTE is categorized as Foreign Large Cap Equities, while VWO is Emerging Markets Equities. TLTE tracks Morningstar Emerging Markets Factor Tilt Index, while VWO tracks FTSE Emerging Index. They also come from different issuers: Northern Trust and Vanguard. Their fees differ too: 0.59% for TLTE and 0.08% for VWO.

TLTE 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.

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