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VFEM.L vs. VWO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VFEM.L vs. VWO

Last updated Jun 5, 2026

VFEM.L (Vanguard FTSE Emerging Markets UCITS ETF Distributing) and VWO (Vanguard FTSE Emerging Markets ETF) are both Emerging Markets Equities funds from Vanguard - VFEM.L tracks the MSCI EM NR USD while VWO tracks the FTSE Emerging Index. Both are passively managed. Over the past 10 years, VFEM.L returned 11.67%/yr vs 9.57%/yr for VWO. A 0.76 correlation means they provide meaningful diversification when combined. VFEM.L charges 0.22%/yr vs 0.08%/yr for VWO.

Performance

VFEM.L vs. VWO - Performance Comparison

The chart below illustrates the hypothetical performance of a £10,000 investment in Vanguard FTSE Emerging Markets UCITS ETF Distributing (VFEM.L) and Vanguard FTSE Emerging Markets ETF (VWO). The values are adjusted to include any dividend payments, if applicable.

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Different Trading Currencies

VFEM.L is traded in GBP, while VWO is traded in USD. To make them comparable, the VWO values have been converted to GBP using the latest available exchange rates.

Returns By Period

In the year-to-date period, VFEM.L achieves a 11.78% return, which is significantly lower than VWO's 12.64% return. Over the past 10 years, VFEM.L has outperformed VWO with an annualized return of 11.67%, while VWO has yielded a comparatively lower 9.57% annualized return.

VFEM.L

1D
-0.13%
1M
2.65%
YTD
11.78%
6M
12.41%
1Y
30.99%
3Y*
16.84%
5Y*
8.88%
10Y*
11.67%

VWO

1D
-0.03%
1M
2.53%
YTD
12.64%
6M
12.71%
1Y
30.65%
3Y*
15.09%
5Y*
6.30%
10Y*
9.57%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VFEM.L vs. VWO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VFEM.L
Vanguard FTSE Emerging Markets UCITS ETF Distributing		11.78%16.90%15.28%5.45%-3.23%3.99%15.04%16.30%-6.83%20.89%
VWO
Vanguard FTSE Emerging Markets ETF		12.64%16.65%12.52%3.79%-8.23%2.22%11.79%16.16%-9.71%20.12%

Correlation

The correlation between VFEM.L and VWO is 0.82, 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

0.82

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

0.80

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

0.80

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

0.77

Correlation (All Time)
Calculated using the full available price history since May 24, 2012

0.76

The correlation between VFEM.L and VWO has been stable across timeframes, ranging from 0.76 to 0.82 - a consistent structural relationship.

VFEM.L vs. VWO - Sectors Allocation Comparison

Sectors
VFEM.L
VWO

Technology

29.6%
29.6%

Financial Services

20.8%
19.5%

Consumer Cyclical

10.8%
10.7%

Basic Materials

7.8%
8.0%

Communication Services

7.5%
7.1%

Industrials

7.1%
8.0%

Energy

4.9%
4.6%

Consumer Defensive

3.6%
3.7%

Healthcare

3.4%
3.9%

Utilities

3.0%
2.9%

Real Estate

1.7%
2.2%

Technology

VFEM.L
29.6%
VWO
29.6%

Financial Services

VFEM.L
20.8%
VWO
19.5%

Consumer Cyclical

VFEM.L
10.8%
VWO
10.7%

Basic Materials

VFEM.L
7.8%
VWO
8.0%

Communication Services

VFEM.L
7.5%
VWO
7.1%

Industrials

VFEM.L
7.1%
VWO
8.0%

Energy

VFEM.L
4.9%
VWO
4.6%

Consumer Defensive

VFEM.L
3.6%
VWO
3.7%

Healthcare

VFEM.L
3.4%
VWO
3.9%

Utilities

VFEM.L
3.0%
VWO
2.9%

Real Estate

VFEM.L
1.7%
VWO
2.2%

Compare stocks, funds, or ETFs

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Vanguard FTSE Emerging Markets UCITS ETF Distributing

Vanguard FTSE Emerging Markets ETF

Often compared with VFEM.L:
VFEM.L vs. VWRP.LVFEM.L vs. EEMAVFEM.L vs. VUSA.LVFEM.L vs. VOOVFEM.L vs. VUKE.LVFEM.L vs. LGGG.LVFEM.L vs. VUAG.L
Often compared with VWO:
VWO vs. VEAVWO vs. IEMGVWO vs. VXUSVWO vs. EEMVWO vs. VOOVWO vs. VTIVWO vs. VEMAX

Return for Risk

VFEM.L vs. VWO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VFEM.L
VFEM.L Risk / Return Rank: 6868
Overall Rank
VFEM.L Sharpe Ratio Rank: 6969
Sharpe Ratio Rank
VFEM.L Sortino Ratio Rank: 6666
Sortino Ratio Rank
VFEM.L Omega Ratio Rank: 6868
Omega Ratio Rank
VFEM.L Calmar Ratio Rank: 7070
Calmar Ratio Rank
VFEM.L Martin Ratio Rank: 6464
Martin Ratio Rank
VWO
VWO Risk / Return Rank: 5656
Overall Rank
VWO Sharpe Ratio Rank: 5656
Sharpe Ratio Rank
VWO Sortino Ratio Rank: 5555
Sortino Ratio Rank
VWO Omega Ratio Rank: 5757
Omega Ratio Rank
VWO Calmar Ratio Rank: 5555
Calmar Ratio Rank
VWO Martin Ratio Rank: 5656
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.

VFEM.L vs. VWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets UCITS ETF Distributing (VFEM.L) 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.

VFEM.LVWODifference
Sharpe ratioReturn per unit of total volatility
2.23
2.19

+0.04

Sortino ratioReturn per unit of downside risk
3.00
3.00

+0.01

Omega ratioGain probability vs. loss probability

1.40

1.42

-0.02

Calmar ratioReturn relative to maximum drawdown

3.46

3.24

+0.22

Martin ratioReturn relative to average drawdown

11.41

11.41

0.00

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VFEM.L vs. VWO - Sharpe Ratio Comparison

The current VFEM.L Sharpe Ratio is 2.23, which is comparable to the VWO Sharpe Ratio of 2.19. The chart below compares the historical Sharpe Ratios of VFEM.L 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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Sharpe Ratios by Period

VFEM.LVWODifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.23

2.19

+0.04

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.57

0.41

+0.16

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.67

0.53

+0.14

Sharpe Ratio (All Time)

Calculated using the full available price history

0.54

0.26

+0.28

Drawdowns

VFEM.L vs. VWO - Drawdown Comparison

The maximum VFEM.L drawdown since its inception was -31.32%, smaller than the maximum VWO drawdown of -54.63%. Use the drawdown chart below to compare losses from any high point for VFEM.L and VWO.

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Drawdown Indicators

VFEM.LVWODifference

Max Drawdown

Largest peak-to-trough decline

-31.32%

-54.63%

+23.31%

Max Drawdown (1Y)

Largest decline over 1 year

-8.92%

-9.50%

+0.58%

Max Drawdown (3Y)

Largest decline over 3 years

-14.68%

-15.35%

+0.67%

Max Drawdown (5Y)

Largest decline over 5 years

-15.28%

-19.03%

+3.75%

Max Drawdown (10Y)

Largest decline over 10 years

-25.91%

-27.22%

+1.31%

Current Drawdown

Current decline from peak

-1.46%

-1.09%

-0.37%

Average Drawdown

Average peak-to-trough decline

-6.87%

-10.35%

+3.48%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.71%

2.69%

+0.02%

Volatility

VFEM.L vs. VWO - Volatility Comparison

Vanguard FTSE Emerging Markets UCITS ETF Distributing (VFEM.L) has a higher volatility of 5.23% compared to Vanguard FTSE Emerging Markets ETF (VWO) at 4.77%. This indicates that VFEM.L'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

VFEM.LVWODifference

Volatility (1M)

Calculated over the trailing 1-month period

5.23%

4.77%

+0.46%

Volatility (6M)

Calculated over the trailing 6-month period

11.12%

11.51%

-0.39%

Volatility (1Y)

Calculated over the trailing 1-year period

13.85%

14.07%

-0.22%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

15.47%

15.30%

+0.17%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

17.50%

18.25%

-0.75%

VFEM.L vs. VWO - Expense Ratio Comparison

VFEM.L has a 0.22% 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

VFEM.L vs. VWO - Dividend Comparison

VFEM.L's dividend yield for the trailing twelve months is around 2.04%, less than VWO's 2.41% yield.

PositionTTM20252024202320222021202020192018201720162015
VFEM.L
Vanguard FTSE Emerging Markets UCITS ETF Distributing		2.04%2.36%2.93%6.58%7.88%6.20%4.92%3.39%3.61%2.98%2.96%4.36%
VWO
Vanguard FTSE Emerging Markets ETF		2.41%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

VFEM.L and VWO have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

On fees, VWO is cheaper at 0.08% per year. The better choice depends on whether you care most about return, fees, risk, or income.

VWO is cheaper with a 0.08% expense ratio, compared with 0.22% for VFEM.L.

VFEM.L tracks MSCI EM NR USD, while VWO tracks FTSE Emerging Index. Their fees differ too: 0.22% for VFEM.L and 0.08% for VWO.

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