VFQY vs. VWOB
VFQY (Vanguard U.S. Quality Factor ETF) and VWOB (Vanguard Emerging Markets Government Bond ETF) are both exchange-traded funds - VFQY is a Mid Cap Blend Equities fund actively managed by Vanguard, while VWOB is a Emerging Markets Bonds fund tracking the Bloomberg USD Emerging Markets Government RIC Capped Index. VFQY is actively managed, while VWOB is passively managed. Over the past 5 years, VFQY returned 8.39%/yr vs 2.07%/yr for VWOB. At a 0.46 correlation, their price movements are largely independent. VFQY charges 0.13%/yr vs 0.15%/yr for VWOB.
Performance
VFQY vs. VWOB - Performance Comparison
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Returns By Period
In the year-to-date period, VFQY achieves a 8.55% return, which is significantly higher than VWOB's 1.92% return.
VFQY
- 1D
- -0.88%
- 1M
- 1.91%
- YTD
- 8.55%
- 6M
- 6.89%
- 1Y
- 19.65%
- 3Y*
- 16.09%
- 5Y*
- 8.39%
- 10Y*
- —
VWOB
- 1D
- -0.16%
- 1M
- 1.64%
- YTD
- 1.92%
- 6M
- 1.94%
- 1Y
- 10.08%
- 3Y*
- 9.01%
- 5Y*
- 2.07%
- 10Y*
- 3.50%
VFQY vs. VWOB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
VFQY Vanguard U.S. Quality Factor ETF | 8.55% | 10.24% | 12.93% | 22.48% | -15.74% | 27.96% | 16.97% | 25.75% | -8.19% |
VWOB Vanguard Emerging Markets Government Bond ETF | 1.92% | 13.49% | 5.20% | 10.68% | -17.39% | -1.80% | 5.65% | 14.46% | -0.15% |
Correlation
The correlation between VFQY and VWOB is 0.54, 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 | 0.54 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.51 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.49 |
Correlation (All Time) Calculated using the full available price history since Feb 15, 2018 | 0.46 |
The correlation between VFQY and VWOB has been stable across timeframes, ranging from 0.46 to 0.54 - a consistent structural relationship.
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Return for Risk
VFQY vs. VWOB — Risk / Return Rank
VFQY
VWOB
VFQY vs. VWOB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard U.S. Quality Factor ETF (VFQY) 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.
| VFQY | VWOB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.46 | ||
| Sortino ratioReturn per unit of downside risk | -0.68 | ||
| Omega ratioGain probability vs. loss probability | 1.25 | 1.37 | -0.12 |
| Calmar ratioReturn relative to maximum drawdown | 2.16 | 2.26 | -0.09 |
| Martin ratioReturn relative to average drawdown | 8.04 | 9.52 | -1.48 |
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Drawdowns
VFQY vs. VWOB - Drawdown Comparison
The maximum VFQY drawdown since its inception was -37.41%, which is greater than VWOB's maximum drawdown of -26.98%. Use the drawdown chart below to compare losses from any high point for VFQY and VWOB.
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Drawdown Indicators
| VFQY | VWOB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -37.41% | -26.98% | -10.43% |
Max Drawdown (1Y)Largest decline over 1 year | -9.12% | -4.48% | -4.64% |
Max Drawdown (3Y)Largest decline over 3 years | -20.67% | -7.71% | -12.96% |
Max Drawdown (5Y)Largest decline over 5 years | -25.93% | -26.98% | +1.05% |
Max Drawdown (10Y)Largest decline over 10 years | — | -26.98% | — |
Current DrawdownCurrent decline from peak | -1.29% | -0.53% | -0.76% |
Average DrawdownAverage peak-to-trough decline | -6.65% | -4.79% | -1.86% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.45% | 1.06% | +1.39% |
Volatility
VFQY vs. VWOB - Volatility Comparison
Vanguard U.S. Quality Factor ETF (VFQY) has a higher volatility of 3.79% compared to Vanguard Emerging Markets Government Bond ETF (VWOB) at 1.74%. This indicates that VFQY'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.
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Volatility by Period
| VFQY | VWOB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.79% | 1.74% | +2.05% |
Volatility (6M)Calculated over the trailing 6-month period | 9.84% | 4.34% | +5.50% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.61% | 5.29% | +8.32% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.36% | 9.19% | +9.17% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.84% | 9.35% | +11.49% |
VFQY vs. VWOB - Expense Ratio Comparison
VFQY has a 0.13% 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
VFQY vs. VWOB - Dividend Comparison
VFQY's dividend yield for the trailing twelve months is around 0.82%, less than VWOB's 5.82% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VFQY Vanguard U.S. Quality Factor ETF | 0.82% | 1.17% | 1.34% | 1.38% | 1.43% | 0.98% | 1.22% | 1.34% | 1.31% | 0.00% | 0.00% | 0.00% |
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
VFQY and VWOB have a correlation of 0.54, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VFQY has higher volatility (3.79%) compared to VWOB (1.74%). In terms of maximum drawdown, VFQY dropped -37.41% vs VWOB's -26.98%.
On 5-year performance, VFQY leads with 8.39% vs 2.07% for VWOB. On fees, VFQY is cheaper at 0.13% per year. On volatility, VWOB has been the lower-risk option at 1.74%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, VFQY has performed better with a 8.39% return vs 2.07%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VFQY is cheaper with a 0.13% expense ratio, compared with 0.15% for VWOB.
VWOB has the higher dividend yield at 5.82%, compared with 0.82% for VFQY.
VFQY is categorized as Mid Cap Blend Equities, while VWOB is Emerging Markets Bonds. Their fees differ too: 0.13% for VFQY and 0.15% for VWOB.
VWOB currently has the higher Sharpe Ratio (1.92 vs 1.46), 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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