VEA vs. VWOB
VEA (Vanguard FTSE Developed Markets ETF) and VWOB (Vanguard Emerging Markets Government Bond ETF) are both exchange-traded funds - VEA is a Foreign Large Cap Equities fund tracking the FTSE Developed All Cap ex US Index, while VWOB is a Emerging Markets Bonds fund tracking the Bloomberg USD Emerging Markets Government RIC Capped Index. Both are passively managed. Over the past 10 years, VEA returned 10.72%/yr vs 3.62%/yr for VWOB. At a 0.50 correlation, their price movements are largely independent. VEA charges 0.03%/yr vs 0.15%/yr for VWOB.
Performance
VEA vs. VWOB - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, VEA achieves a 14.73% return, which is significantly higher than VWOB's 2.08% return. Over the past 10 years, VEA has outperformed VWOB with an annualized return of 10.72%, while VWOB has yielded a comparatively lower 3.62% annualized return.
VEA
- 1D
- 0.34%
- 1M
- 1.40%
- YTD
- 14.73%
- 6M
- 16.65%
- 1Y
- 31.41%
- 3Y*
- 19.03%
- 5Y*
- 9.51%
- 10Y*
- 10.72%
VWOB
- 1D
- 0.16%
- 1M
- 1.34%
- YTD
- 2.08%
- 6M
- 2.45%
- 1Y
- 10.76%
- 3Y*
- 9.31%
- 5Y*
- 2.01%
- 10Y*
- 3.62%
VEA vs. VWOB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VEA Vanguard FTSE Developed Markets ETF | 14.73% | 35.16% | 3.15% | 17.93% | -15.34% | 11.66% | 9.71% | 22.62% | -14.75% | 26.42% |
VWOB Vanguard Emerging Markets Government Bond ETF | 2.08% | 13.49% | 5.20% | 10.68% | -17.39% | -1.80% | 5.65% | 14.46% | -2.92% | 8.41% |
Correlation
The correlation between VEA and VWOB is 0.61, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.61 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.59 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.57 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.53 |
Correlation (All Time) Calculated using the full available price history since Jun 4, 2013 | 0.50 |
The correlation between VEA and VWOB shifts across timeframes, from 0.50 (all time) to 0.61 (1 year), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
VEA vs. VWOB — Risk / Return Rank
VEA
VWOB
VEA vs. VWOB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Developed Markets ETF (VEA) and Vanguard Emerging Markets Government Bond ETF (VWOB). 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.
| VEA | VWOB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.15 | ||
| Sortino ratioReturn per unit of downside risk | -0.35 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 1.38 | -0.05 |
| Calmar ratioReturn relative to maximum drawdown | 2.58 | 2.29 | +0.28 |
| Martin ratioReturn relative to average drawdown | 9.92 | 9.66 | +0.25 |
Loading charts...
Drawdowns
VEA vs. VWOB - Drawdown Comparison
The maximum VEA drawdown since its inception was -60.68%, which is greater than VWOB's maximum drawdown of -26.98%. Use the drawdown chart below to compare losses from any high point for VEA and VWOB.
Loading charts...
Drawdown Indicators
| VEA | VWOB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -60.68% | -26.98% | -33.70% |
Max Drawdown (1Y)Largest decline over 1 year | -11.63% | -4.48% | -7.15% |
Max Drawdown (3Y)Largest decline over 3 years | -13.45% | -7.71% | -5.74% |
Max Drawdown (5Y)Largest decline over 5 years | -29.71% | -26.98% | -2.73% |
Max Drawdown (10Y)Largest decline over 10 years | -35.73% | -26.98% | -8.75% |
Current DrawdownCurrent decline from peak | -1.06% | 0.00% | -1.06% |
Average DrawdownAverage peak-to-trough decline | -13.28% | -4.79% | -8.49% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.02% | 1.06% | +1.96% |
Volatility
VEA vs. VWOB - Volatility Comparison
Vanguard FTSE Developed Markets ETF (VEA) has a higher volatility of 6.84% compared to Vanguard Emerging Markets Government Bond ETF (VWOB) at 1.90%. This indicates that VEA's price experiences larger fluctuations and is considered to be riskier than VWOB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| VEA | VWOB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.84% | 1.90% | +4.94% |
Volatility (6M)Calculated over the trailing 6-month period | 14.38% | 4.31% | +10.07% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.58% | 5.25% | +11.33% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.72% | 9.19% | +7.53% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.40% | 9.35% | +8.05% |
VEA vs. VWOB - Expense Ratio Comparison
VEA has a 0.03% expense ratio, which is lower than VWOB's 0.15% 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
VEA vs. VWOB - Dividend Comparison
VEA's dividend yield for the trailing twelve months is around 2.62%, less than VWOB's 5.82% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VEA Vanguard FTSE Developed Markets ETF | 2.62% | 3.22% | 3.35% | 3.15% | 2.91% | 3.16% | 2.04% | 3.04% | 3.35% | 2.77% | 3.05% | 2.92% |
VWOB Vanguard Emerging Markets Government Bond ETF | 5.82% | 5.92% | 6.08% | 5.50% | 5.30% | 4.04% | 4.18% | 4.58% | 4.52% | 4.61% | 4.71% | 4.93% |
Frequently Asked Questions
VEA and VWOB have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VEA has higher volatility (6.84%) compared to VWOB (1.90%). In terms of maximum drawdown, VEA dropped -60.68% vs VWOB's -26.98%.
On 10-year performance, VEA leads with 10.72% vs 3.62% for VWOB. On fees, VEA is cheaper at 0.03% per year. On volatility, VWOB has been the lower-risk option at 1.90%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VEA has performed better with a 10.72% return vs 3.62%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VEA is cheaper with a 0.03% expense ratio, compared with 0.15% for VWOB.
VWOB has the higher dividend yield at 5.82%, compared with 2.62% for VEA.
VEA is categorized as Foreign Large Cap Equities, while VWOB is Emerging Markets Bonds. VEA tracks FTSE Developed All Cap ex US Index, while VWOB tracks Bloomberg USD Emerging Markets Government RIC Capped Index. Their fees differ too: 0.03% for VEA and 0.15% for VWOB.
VWOB currently has the higher Sharpe Ratio (1.96 vs 1.81), 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.
Find the right allocation for VEA and VWOB
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer