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VEMAX vs. VWO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VEMAX vs. VWO

Last updated Jun 26, 2026

VEMAX (Vanguard Emerging Markets Stock Index Fund Admiral Shares) and VWO (Vanguard FTSE Emerging Markets ETF) are both Emerging Markets Equities funds from Vanguard - VEMAX tracks the FTSE Emerging Markets All Cap China A Inclusion Index while VWO tracks the FTSE Emerging Index. Both are passively managed. Over the past 10 years, VEMAX returned 8.77%/yr vs 8.98%/yr for VWO. Their correlation of 0.94 suggests significant overlap in exposure. VEMAX charges 0.13%/yr vs 0.08%/yr for VWO.

Performance

VEMAX vs. VWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Emerging Markets Stock Index Fund Admiral Shares (VEMAX) 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

The year-to-date returns for both stocks are quite close, with VEMAX having a 9.91% return and VWO slightly lower at 9.50%. Both investments have delivered pretty close results over the past 10 years, with VEMAX having a 8.77% annualized return and VWO not far ahead at 8.98%.

VEMAX

1D
-0.55%
1M
-1.67%
YTD
9.91%
6M
10.18%
1Y
23.56%
3Y*
17.01%
5Y*
4.74%
10Y*
8.77%

VWO

1D
-0.29%
1M
-2.26%
YTD
9.50%
6M
9.67%
1Y
22.86%
3Y*
16.92%
5Y*
4.72%
10Y*
8.98%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VEMAX vs. VWO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VEMAX
Vanguard Emerging Markets Stock Index Fund Admiral Shares		9.91%24.76%11.34%8.82%-17.79%0.85%15.24%20.29%-14.59%31.37%
VWO
Vanguard FTSE Emerging Markets ETF		9.50%25.60%10.59%9.25%-17.98%1.26%15.17%20.75%-14.76%31.49%

Correlation

The correlation between VEMAX and VWO is 0.95 - 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

0.95

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

0.96

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 Jun 23, 2006

0.94

The correlation between VEMAX and VWO has been stable across timeframes, ranging from 0.94 to 0.96 - a consistent structural relationship.

VEMAX vs. VWO - Sectors Allocation Comparison

Sectors
VEMAX
VWO

Technology

31.6%
31.6%

Financial Services

16.8%
16.8%

Consumer Cyclical

8.7%
8.7%

Basic Materials

7.0%
7.0%

Industrials

6.8%
6.8%

Communication Services

5.8%
5.8%

Energy

3.6%
3.6%

Healthcare

3.4%
3.4%

Consumer Defensive

3.1%
3.1%

Utilities

2.4%
2.4%

Real Estate

1.8%
1.8%

Technology

VEMAX
31.6%
VWO
31.6%

Financial Services

VEMAX
16.8%
VWO
16.8%

Consumer Cyclical

VEMAX
8.7%
VWO
8.7%

Basic Materials

VEMAX
7.0%
VWO
7.0%

Industrials

VEMAX
6.8%
VWO
6.8%

Communication Services

VEMAX
5.8%
VWO
5.8%

Energy

VEMAX
3.6%
VWO
3.6%

Healthcare

VEMAX
3.4%
VWO
3.4%

Consumer Defensive

VEMAX
3.1%
VWO
3.1%

Utilities

VEMAX
2.4%
VWO
2.4%

Real Estate

VEMAX
1.8%
VWO
1.8%

Compare stocks, funds, or ETFs

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Vanguard Emerging Markets Stock Index Fund Admiral Shares

Vanguard FTSE Emerging Markets ETF

Often compared with VEMAX:
VEMAX vs. VTMGXVEMAX vs. VFIAXVEMAX vs. FPADXVEMAX vs. FEMKXVEMAX vs. FSPSXVEMAX vs. VINEXVEMAX vs. SPY
Often compared with VWO:
VWO vs. VEAVWO vs. IEMGVWO vs. VXUSVWO vs. EEMVWO vs. VOOVWO vs. VTIVWO vs. SCHE

Return for Risk

VEMAX vs. VWO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VEMAX
VEMAX Risk / Return Rank: 4141
Overall Rank
VEMAX Sharpe Ratio Rank: 4141
Sharpe Ratio Rank
VEMAX Sortino Ratio Rank: 3838
Sortino Ratio Rank
VEMAX Omega Ratio Rank: 4141
Omega Ratio Rank
VEMAX Calmar Ratio Rank: 4242
Calmar Ratio Rank
VEMAX Martin Ratio Rank: 4242
Martin Ratio Rank
VWO
VWO Risk / Return Rank: 4646
Overall Rank
VWO Sharpe Ratio Rank: 4444
Sharpe Ratio Rank
VWO Sortino Ratio Rank: 4242
Sortino Ratio Rank
VWO Omega Ratio Rank: 4545
Omega Ratio Rank
VWO Calmar Ratio Rank: 4747
Calmar Ratio Rank
VWO Martin Ratio Rank: 4949
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.

VEMAX vs. VWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Emerging Markets Stock Index Fund Admiral Shares (VEMAX) 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.

VEMAXVWODifference
Sharpe ratioReturn per unit of total volatility
1.57
1.37

+0.21

Sortino ratioReturn per unit of downside risk
2.17
1.92

+0.25

Omega ratioGain probability vs. loss probability

1.29

1.26

+0.03

Calmar ratioReturn relative to maximum drawdown

2.17

2.06

+0.11

Martin ratioReturn relative to average drawdown

7.86

7.20

+0.66

VEMAX vs. VWO - Sharpe Ratio Comparison

The current VEMAX Sharpe Ratio is 1.57, which is comparable to the VWO Sharpe Ratio of 1.37. The chart below compares the historical Sharpe Ratios of VEMAX 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

VEMAX vs. VWO - Drawdown Comparison

The maximum VEMAX drawdown since its inception was -66.45%, roughly equal to the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for VEMAX and VWO.

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Drawdown Indicators

VEMAXVWODifference

Max Drawdown

Largest peak-to-trough decline

-66.45%

-67.68%

+1.23%

Max Drawdown (1Y)

Largest decline over 1 year

-11.05%

-11.17%

+0.12%

Max Drawdown (3Y)

Largest decline over 3 years

-15.78%

-17.37%

+1.59%

Max Drawdown (5Y)

Largest decline over 5 years

-32.46%

-32.60%

+0.14%

Max Drawdown (10Y)

Largest decline over 10 years

-36.11%

-36.39%

+0.28%

Current Drawdown

Current decline from peak

-3.56%

-3.98%

+0.42%

Average Drawdown

Average peak-to-trough decline

-16.08%

-15.78%

-0.30%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.04%

3.18%

-0.14%

Volatility

VEMAX vs. VWO - Volatility Comparison

Vanguard Emerging Markets Stock Index Fund Admiral Shares (VEMAX) and Vanguard FTSE Emerging Markets ETF (VWO) have volatilities of 6.82% and 7.06%, 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.

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Volatility by Period

VEMAXVWODifference

Volatility (1M)

Calculated over the trailing 1-month period

6.82%

7.06%

-0.24%

Volatility (6M)

Calculated over the trailing 6-month period

13.18%

14.60%

-1.42%

Volatility (1Y)

Calculated over the trailing 1-year period

15.37%

16.82%

-1.45%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

15.58%

17.58%

-2.00%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

16.47%

19.17%

-2.70%

VEMAX vs. VWO - Expense Ratio Comparison

VEMAX has a 0.13% expense ratio, which is higher than VWO's 0.08% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VEMAX vs. VWO - Dividend Comparison

VEMAX's dividend yield for the trailing twelve months is around 2.30%, less than VWO's 2.35% yield.

PositionTTM20252024202320222021202020192018201720162015
VEMAX
Vanguard Emerging Markets Stock Index Fund Admiral Shares		2.30%2.74%3.13%3.47%4.05%2.57%1.87%3.20%2.85%2.31%2.51%3.25%
VWO
Vanguard FTSE Emerging Markets ETF		2.35%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 0.95, VEMAX 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.

VWO has higher volatility (7.06%) compared to VEMAX (6.82%). In terms of maximum drawdown, VEMAX dropped -66.45% vs VWO's -67.68%.

VEMAX currently has the higher Sharpe Ratio (1.57 vs 1.37), 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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