VEXC vs. VWO

Last updated Jun 23, 2026

VEXC (Vanguard Emerging Markets Ex-China ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both Emerging Markets Equities funds from Vanguard - VEXC tracks the FTSE Emerging ex China Index while VWO tracks the FTSE Emerging Index. Both are passively managed. Their correlation of 0.95 suggests significant overlap in exposure. VEXC charges 0.07%/yr vs 0.08%/yr for VWO.

Performance

VEXC vs. VWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Emerging Markets Ex-China ETF (VEXC) 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, VEXC achieves a 24.82% return, which is significantly higher than VWO's 14.05% return.

VEXC

• 1D: 1.12%
• 1M: 7.24%
• YTD: 24.82%
• 6M: 26.47%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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)

VEXC vs. VWO - Yearly Performance Comparison

	2026 (YTD)	2025
VEXC Vanguard Emerging Markets Ex-China ETF	24.82%	4.50%
VWO Vanguard FTSE Emerging Markets ETF	14.05%	0.54%

Correlation

The correlation between VEXC and VWO is 0.95, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (All Time) Calculated using the full available price history since Oct 2, 2025	0.95

Return for Risk

VEXC vs. VWO — Risk / Return Rank

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

VEXC

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

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.

VEXC vs. VWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Emerging Markets Ex-China ETF (VEXC) 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.

	VEXC	VWO	Difference
Sharpe ratio: Return per unit of total volatility	—	1.94	—
Sortino ratio: Return per unit of downside risk	—	2.66	—
Omega ratio: Gain probability vs. loss probability	—	1.36	—
Calmar ratio: Return relative to maximum drawdown	—	2.89	—
Martin ratio: Return relative to average drawdown	—	10.19	—

Drawdowns

VEXC vs. VWO - Drawdown Comparison

The maximum VEXC drawdown since its inception was -12.42%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for VEXC and VWO.

Drawdown Indicators

	VEXC	VWO	Difference
Max Drawdown Largest peak-to-trough decline	-12.42%	-67.68%	+55.26%
Max Drawdown (1Y) Largest decline over 1 year	—	-11.17%	—
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	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-2.23%	-15.79%	+13.56%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	3.16%	—

Volatility

Volatility by Period

	VEXC	VWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	6.57%	—
Volatility (6M) Calculated over the trailing 6-month period	—	14.28%	—
Volatility (1Y) Calculated over the trailing 1-year period	19.91%	16.67%	+3.24%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.91%	17.53%	+2.38%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.91%	19.24%	+0.67%

VEXC vs. VWO - Expense Ratio Comparison

VEXC 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

VEXC vs. VWO - Dividend Comparison

VEXC's dividend yield for the trailing twelve months is around 1.38%, less than VWO's 2.26% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VEXC Vanguard Emerging Markets Ex-China ETF	1.38%	0.43%	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	2.26%	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 VEXC and VWO in my portfolio?

With a correlation of 0.95, VEXC 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 ETF is better, VEXC or VWO?

On fees, VEXC is cheaper at 0.07% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VEXC or VWO?

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

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

VWO has the higher dividend yield at 2.26%, compared with 1.38% for VEXC.

What is the main difference between VEXC and VWO?

VEXC tracks FTSE Emerging ex China Index, while VWO tracks FTSE Emerging Index. Their fees differ too: 0.07% for VEXC and 0.08% for VWO.