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VIOO vs. VWO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VIOO vs. VWO

Last updated Jun 23, 2026

VIOO (Vanguard S&P Small-Cap 600 ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both exchange-traded funds - VIOO is a Small Cap Blend Equities fund tracking the S&P SmallCap 600 Index, while VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index. Both are passively managed. Over the past 10 years, VIOO returned 11.35%/yr vs 9.31%/yr for VWO. A 0.60 correlation means they provide meaningful diversification when combined. VIOO charges 0.07%/yr vs 0.08%/yr for VWO.

Performance

VIOO vs. VWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard S&P Small-Cap 600 ETF (VIOO) 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

In the year-to-date period, VIOO achieves a 19.73% return, which is significantly higher than VWO's 14.05% return. Over the past 10 years, VIOO has outperformed VWO with an annualized return of 11.35%, while VWO has yielded a comparatively lower 9.31% annualized return.

VIOO

1D
0.05%
1M
4.59%
YTD
19.73%
6M
16.79%
1Y
36.99%
3Y*
16.33%
5Y*
6.65%
10Y*
11.35%

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)

VIOO vs. VWO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VIOO
Vanguard S&P Small-Cap 600 ETF		19.73%6.04%8.48%16.16%-16.26%26.79%11.47%22.68%-8.65%13.16%
VWO
Vanguard FTSE Emerging Markets ETF		14.05%25.60%10.59%9.25%-17.98%1.26%15.17%20.75%-14.76%31.49%

Correlation

The correlation between VIOO and VWO is 0.60, 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

0.60

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

0.56

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

0.58

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

0.57

Correlation (All Time)
Calculated using the full available price history since Sep 9, 2010

0.60

The correlation between VIOO and VWO has been stable across timeframes, ranging from 0.56 to 0.60 - a consistent structural relationship.

VIOO vs. VWO - Sectors Allocation Comparison

Sectors
VIOO
VWO

Financial Services

16.9%
16.8%

Industrials

15.5%
6.8%

Technology

15.5%
31.6%

Consumer Cyclical

13.4%
8.7%

Healthcare

11.0%
3.4%

Real Estate

7.7%
1.8%

Energy

5.9%
3.6%

Basic Materials

5.1%
7.0%

Communication Services

3.6%
5.8%

Consumer Defensive

3.5%
3.1%

Utilities

2.0%
2.4%

Financial Services

VIOO
16.9%
VWO
16.8%

Industrials

VIOO
15.5%
VWO
6.8%

Technology

VIOO
15.5%
VWO
31.6%

Consumer Cyclical

VIOO
13.4%
VWO
8.7%

Healthcare

VIOO
11.0%
VWO
3.4%

Real Estate

VIOO
7.7%
VWO
1.8%

Energy

VIOO
5.9%
VWO
3.6%

Basic Materials

VIOO
5.1%
VWO
7.0%

Communication Services

VIOO
3.6%
VWO
5.8%

Consumer Defensive

VIOO
3.5%
VWO
3.1%

Utilities

VIOO
2.0%
VWO
2.4%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard S&P Small-Cap 600 ETF

Vanguard FTSE Emerging Markets ETF

Often compared with VIOO:
VIOO vs. VBVIOO vs. IJRVIOO vs. VOVIOO vs. AVUVVIOO vs. VIOVVIOO vs. VTWOVIOO vs. VIOG
Often compared with VWO:
VWO vs. VEAVWO vs. IEMGVWO vs. VXUSVWO vs. EEMVWO vs. VOOVWO vs. VTIVWO vs. VEMAX

Return for Risk

VIOO vs. VWO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VIOO
VIOO Risk / Return Rank: 7171
Overall Rank
VIOO Sharpe Ratio Rank: 6666
Sharpe Ratio Rank
VIOO Sortino Ratio Rank: 6969
Sortino Ratio Rank
VIOO Omega Ratio Rank: 6060
Omega Ratio Rank
VIOO Calmar Ratio Rank: 8383
Calmar Ratio Rank
VIOO Martin Ratio Rank: 7777
Martin Ratio Rank
VWO
VWO Risk / Return Rank: 6060
Overall Rank
VWO Sharpe Ratio Rank: 6060
Sharpe Ratio Rank
VWO Sortino Ratio Rank: 5858
Sortino Ratio Rank
VWO Omega Ratio Rank: 6161
Omega Ratio Rank
VWO Calmar Ratio Rank: 6060
Calmar Ratio Rank
VWO Martin Ratio Rank: 5959
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.

VIOO vs. VWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard S&P Small-Cap 600 ETF (VIOO) 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.

VIOOVWODifference
Sharpe ratioReturn per unit of total volatility
2.09
1.94

+0.15

Sortino ratioReturn per unit of downside risk
3.00
2.66

+0.35

Omega ratioGain probability vs. loss probability

1.36

1.36

0.00

Calmar ratioReturn relative to maximum drawdown

4.24

2.89

+1.35

Martin ratioReturn relative to average drawdown

14.31

10.19

+4.12

VIOO vs. VWO - Sharpe Ratio Comparison

The current VIOO Sharpe Ratio is 2.09, which is comparable to the VWO Sharpe Ratio of 1.94. The chart below compares the historical Sharpe Ratios of VIOO 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

VIOO vs. VWO - Drawdown Comparison

The maximum VIOO drawdown since its inception was -44.15%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for VIOO and VWO.

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Drawdown Indicators

VIOOVWODifference

Max Drawdown

Largest peak-to-trough decline

-44.15%

-67.68%

+23.53%

Max Drawdown (1Y)

Largest decline over 1 year

-8.77%

-11.17%

+2.40%

Max Drawdown (3Y)

Largest decline over 3 years

-27.93%

-17.37%

-10.56%

Max Drawdown (5Y)

Largest decline over 5 years

-27.93%

-32.60%

+4.67%

Max Drawdown (10Y)

Largest decline over 10 years

-44.15%

-36.39%

-7.76%

Current Drawdown

Current decline from peak

-0.12%

0.00%

-0.12%

Average Drawdown

Average peak-to-trough decline

-7.31%

-15.79%

+8.48%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.59%

3.16%

-0.57%

Volatility

VIOO vs. VWO - Volatility Comparison

The current volatility for Vanguard S&P Small-Cap 600 ETF (VIOO) is 4.93%, while Vanguard FTSE Emerging Markets ETF (VWO) has a volatility of 6.57%. This indicates that VIOO experiences smaller price fluctuations and is considered to be less risky 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

VIOOVWODifference

Volatility (1M)

Calculated over the trailing 1-month period

4.93%

6.57%

-1.64%

Volatility (6M)

Calculated over the trailing 6-month period

12.10%

14.28%

-2.18%

Volatility (1Y)

Calculated over the trailing 1-year period

17.80%

16.67%

+1.13%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

21.40%

17.53%

+3.87%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

23.01%

19.24%

+3.77%

VIOO vs. VWO - Expense Ratio Comparison

VIOO 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

VIOO vs. VWO - Dividend Comparison

VIOO's dividend yield for the trailing twelve months is around 1.13%, less than VWO's 2.26% yield.

PositionTTM20252024202320222021202020192018201720162015
VIOO
Vanguard S&P Small-Cap 600 ETF		1.13%1.36%1.48%1.47%1.51%1.16%1.09%1.37%1.32%1.11%1.06%1.26%
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

VIOO and VWO have a correlation of 0.60, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VWO has higher volatility (6.57%) compared to VIOO (4.93%). In terms of maximum drawdown, VIOO dropped -44.15% vs VWO's -67.68%.

On 10-year performance, VIOO leads with 11.35% vs 9.31% for VWO. On fees, VIOO is cheaper at 0.07% per year. On volatility, VIOO has been the lower-risk option at 4.93%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VIOO has performed better with a 11.35% return vs 9.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

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

VWO has the higher dividend yield at 2.26%, compared with 1.13% for VIOO.

VIOO is categorized as Small Cap Blend Equities, while VWO is Emerging Markets Equities. VIOO tracks S&P SmallCap 600 Index, while VWO tracks FTSE Emerging Index. Their fees differ too: 0.07% for VIOO and 0.08% for VWO.

VIOO currently has the higher Sharpe Ratio (2.09 vs 1.94), 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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