VOE vs. VWO

Last updated Jul 22, 2026

VOE (Vanguard Mid-Cap Value ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both exchange-traded funds - VOE is a Mid Cap Value Equities fund tracking the CRSP US Mid Cap Value Index, while VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index. Both are passively managed. Over the past 10 years, VOE returned 10.57%/yr vs 7.82%/yr for VWO. A 0.69 correlation means they provide meaningful diversification when combined. VOE charges 0.05%/yr vs 0.08%/yr for VWO.

Performance

VOE vs. VWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Mid-Cap Value ETF (VOE) 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, VOE achieves a 15.00% return, which is significantly higher than VWO's 9.62% return. Over the past 10 years, VOE has outperformed VWO with an annualized return of 10.57%, while VWO has yielded a comparatively lower 7.82% annualized return.

VOE

• 1D: 0.20%
• 1M: 3.58%
• 6M: 11.63%
• YTD: 15.00%
• 1Y: 23.81%
• 3Y*: 14.54%
• 5Y*: 10.19%
• 10Y*: 10.57%
• ALL TIME*: 9.49%

VWO

• 1D: 1.61%
• 1M: -3.14%
• 6M: 6.10%
• YTD: 9.62%
• 1Y: 19.01%
• 3Y*: 15.95%
• 5Y*: 5.44%
• 10Y*: 7.82%
• ALL TIME*: 6.83%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VOE vs. VWO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VOE Vanguard Mid-Cap Value ETF	15.00%	12.08%	14.00%	9.85%	-7.97%	28.78%	2.65%	27.85%	-12.48%	17.07%
VWO Vanguard FTSE Emerging Markets ETF	9.62%	25.60%	10.59%	9.25%	-17.98%	1.26%	15.17%	20.75%	-14.76%	31.49%

Correlation

The correlation between VOE and VWO is 0.43, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.43
Correlation (3Y) Calculated over the trailing 3-year period	0.48
Correlation (5Y) Calculated over the trailing 5-year period	0.53
Correlation (10Y) Calculated over the trailing 10-year period	0.57
Correlation (All Time) Calculated using the full available price history since Aug 25, 2006	0.69

Over the past year, the correlation between VOE and VWO has dropped to 0.43 - well below their long-term average of 0.69, suggesting their price drivers have been diverging.

VOE vs. VWO - Sectors Allocation Comparison

Sectors	VOE	VWO
Financial Services	19.0%	16.8%
Industrials	14.3%	7.0%
Utilities	12.6%	2.4%
Energy	11.7%	3.6%
Technology	8.1%	31.4%
Consumer Defensive	7.6%	3.2%
Healthcare	7.2%	3.4%
Consumer Cyclical	6.1%	8.6%
Real Estate	5.8%	1.8%
Basic Materials	5.7%	7.0%
Communication Services	1.5%	5.8%

Return for Risk

VOE vs. VWO — Risk / Return Rank

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

VOE

VOE Risk / Return Rank: 85
VOE Sharpe Ratio Rank: 86
VOE Sortino Ratio Rank: 87
VOE Omega Ratio Rank: 83
VOE Calmar Ratio Rank: 85
VOE Martin Ratio Rank: 86

VWO

VWO Risk / Return Rank: 43
VWO Sharpe Ratio Rank: 41
VWO Sortino Ratio Rank: 40
VWO Omega Ratio Rank: 41
VWO Calmar Ratio Rank: 45
VWO Martin Ratio Rank: 47

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.

VOE vs. VWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Mid-Cap Value ETF (VOE) 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.

	VOE	VWO	Difference
Sharpe ratio: Return per unit of total volatility	2.09	1.10	+0.99
Sortino ratio: Return per unit of downside risk	3.04	1.59	+1.45
Omega ratio: Gain probability vs. loss probability	1.37	1.21	+0.16
Calmar ratio: Return relative to maximum drawdown	3.45	1.71	+1.74
Martin ratio: Return relative to average drawdown	13.12	5.74	+7.38

VOE vs. VWO - Sharpe Ratio Comparison

The current VOE Sharpe Ratio is 2.09, which is higher than the VWO Sharpe Ratio of 1.10. The chart below compares the historical Sharpe Ratios of VOE 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.

Drawdowns

VOE vs. VWO - Drawdown Comparison

The maximum VOE drawdown since its inception was -61.50%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for VOE and VWO.

Drawdown Indicators

	VOE	VWO	Difference
Max Drawdown Largest peak-to-trough decline	-61.50%	-67.68%	+6.18%
Max Drawdown (1Y) Largest decline over 1 year	-6.93%	-11.17%	+4.24%
Max Drawdown (3Y) Largest decline over 3 years	-18.45%	-17.37%	-1.08%
Max Drawdown (5Y) Largest decline over 5 years	-19.70%	-30.88%	+11.18%
Max Drawdown (10Y) Largest decline over 10 years	-43.18%	-36.39%	-6.79%
Current Drawdown Current decline from peak	-0.72%	-3.89%	+3.17%
Average Drawdown Average peak-to-trough decline	-8.30%	-15.74%	+7.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.82%	3.32%	-1.50%

Volatility

VOE vs. VWO - Volatility Comparison

The current volatility for Vanguard Mid-Cap Value ETF (VOE) is 2.36%, while Vanguard FTSE Emerging Markets ETF (VWO) has a volatility of 5.77%. This indicates that VOE 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.

Volatility by Period

	VOE	VWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.36%	5.77%	-3.41%
Volatility (6M) Calculated over the trailing 6-month period	8.20%	15.00%	-6.80%
Volatility (1Y) Calculated over the trailing 1-year period	11.44%	17.35%	-5.91%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.89%	17.61%	-1.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.73%	19.15%	-0.42%

VOE vs. VWO - Expense Ratio Comparison

VOE has a 0.05% 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

VOE vs. VWO - Dividend Comparison

VOE's dividend yield for the trailing twelve months is around 1.84%, less than VWO's 2.35% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VOE Vanguard Mid-Cap Value ETF	1.84%	2.10%	2.11%	2.27%	2.27%	1.78%	2.36%	2.05%	2.75%	1.86%	1.92%	2.05%
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

Can I hold both VOE and VWO in my portfolio?

VOE and VWO have a correlation of 0.43, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VOE or VWO?

VWO has higher volatility (5.77%) compared to VOE (2.36%). In terms of maximum drawdown, VOE dropped -61.50% vs VWO's -67.68%.

Which ETF is better, VOE or VWO?

On 10-year performance, VOE leads with 10.57% vs 7.82% for VWO. On fees, VOE is cheaper at 0.05% per year. On volatility, VOE has been the lower-risk option at 2.36%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VOE or VWO?

Over the 10-year period, VOE has performed better with a 10.57% return vs 7.82%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VOE or VWO?

VOE is cheaper with a 0.05% expense ratio, compared with 0.08% for VWO.

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

VWO has the higher dividend yield at 2.35%, compared with 1.84% for VOE.

What is the main difference between VOE and VWO?

VOE is categorized as Mid Cap Value Equities, while VWO is Emerging Markets Equities. VOE tracks CRSP US Mid Cap Value Index, while VWO tracks FTSE Emerging Index. Their fees differ too: 0.05% for VOE and 0.08% for VWO.

Which has better risk-adjusted returns?

VOE currently has the higher Sharpe Ratio (2.09 vs 1.10), 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.