VPL vs. VWO

Last updated Jun 9, 2026

VPL (Vanguard FTSE Pacific ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both exchange-traded funds - VPL is a Asia Pacific Equities fund tracking the FTSE Developed Asia Pacific Index, while VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index. Both are passively managed. Over the past 10 years, VPL returned 10.28%/yr vs 8.60%/yr for VWO. A 0.79 correlation means they provide meaningful diversification when combined. Both charge a 0.08% expense ratio.

Performance

VPL vs. VWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Pacific ETF (VPL) 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, VPL achieves a 23.45% return, which is significantly higher than VWO's 8.50% return. Over the past 10 years, VPL has outperformed VWO with an annualized return of 10.28%, while VWO has yielded a comparatively lower 8.60% annualized return.

VPL

• 1D: 1.91%
• 1M: -2.01%
• YTD: 23.45%
• 6M: 25.45%
• 1Y: 44.55%
• 3Y*: 20.45%
• 5Y*: 9.35%
• 10Y*: 10.28%

VWO

• 1D: 0.52%
• 1M: -3.65%
• YTD: 8.50%
• 6M: 9.73%
• 1Y: 24.29%
• 3Y*: 16.22%
• 5Y*: 4.65%
• 10Y*: 8.60%

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

VPL vs. VWO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VPL Vanguard FTSE Pacific ETF	23.45%	32.66%	1.68%	15.58%	-15.20%	1.10%	16.65%	18.16%	-14.40%	28.85%
VWO Vanguard FTSE Emerging Markets ETF	8.50%	25.60%	10.59%	9.25%	-17.98%	1.26%	15.17%	20.75%	-14.76%	31.49%

Correlation

The correlation between VPL and VWO is 0.76, 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	0.76
Correlation (3Y) Calculated over the trailing 3-year period	0.74
Correlation (5Y) Calculated over the trailing 5-year period	0.76
Correlation (10Y) Calculated over the trailing 10-year period	0.78
Correlation (All Time) Calculated using the full available price history since Mar 11, 2005	0.79

The correlation between VPL and VWO has been stable across timeframes, ranging from 0.74 to 0.79 - a consistent structural relationship.

VPL vs. VWO - Sectors Allocation Comparison

Sectors	VPL	VWO
Technology	22.6%	29.6%
Industrials	20.5%	8.0%
Financial Services	19.3%	19.5%
Consumer Cyclical	9.6%	10.7%
Basic Materials	7.3%	8.0%
Healthcare	5.0%	3.9%
Communication Services	4.8%	7.1%
Real Estate	4.3%	2.2%
Consumer Defensive	3.5%	3.7%
Energy	1.6%	4.6%
Utilities	1.6%	2.9%

Return for Risk

VPL vs. VWO — Risk / Return Rank

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

VPL

VPL Risk / Return Rank: 73
VPL Sharpe Ratio Rank: 74
VPL Sortino Ratio Rank: 68
VPL Omega Ratio Rank: 75
VPL Calmar Ratio Rank: 73
VPL Martin Ratio Rank: 76

VWO

VWO Risk / Return Rank: 49
VWO Sharpe Ratio Rank: 47
VWO Sortino Ratio Rank: 47
VWO Omega Ratio Rank: 50
VWO Calmar Ratio Rank: 49
VWO Martin Ratio Rank: 51

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.

VPL vs. VWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Pacific ETF (VPL) 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.

	VPL	VWO	Difference
Sharpe ratio: Return per unit of total volatility	2.17	1.49	+0.68
Sortino ratio: Return per unit of downside risk	2.80	2.08	+0.72
Omega ratio: Gain probability vs. loss probability	1.40	1.28	+0.12
Calmar ratio: Return relative to maximum drawdown	3.36	2.18	+1.17
Martin ratio: Return relative to average drawdown	13.06	7.79	+5.27
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VPL vs. VWO - Sharpe Ratio Comparison

The current VPL Sharpe Ratio is 2.17, which is higher than the VWO Sharpe Ratio of 1.49. The chart below compares the historical Sharpe Ratios of VPL 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.

Sharpe Ratios by Period

	VPL	VWO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.17	1.49	+0.68
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.54	0.27	+0.27
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.59	0.45	+0.14
Sharpe Ratio (All Time) Calculated using the full available price history	0.33	0.26	+0.07

Drawdowns

VPL vs. VWO - Drawdown Comparison

The maximum VPL drawdown since its inception was -55.49%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for VPL and VWO.

Drawdown Indicators

	VPL	VWO	Difference
Max Drawdown Largest peak-to-trough decline	-55.49%	-67.68%	+12.19%
Max Drawdown (1Y) Largest decline over 1 year	-13.33%	-11.17%	-2.16%
Max Drawdown (3Y) Largest decline over 3 years	-16.35%	-17.37%	+1.02%
Max Drawdown (5Y) Largest decline over 5 years	-31.09%	-32.60%	+1.51%
Max Drawdown (10Y) Largest decline over 10 years	-33.90%	-36.39%	+2.49%
Current Drawdown Current decline from peak	-5.51%	-4.67%	-0.84%
Average Drawdown Average peak-to-trough decline	-11.63%	-15.81%	+4.18%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.42%	3.12%	+0.30%

Volatility

VPL vs. VWO - Volatility Comparison

Vanguard FTSE Pacific ETF (VPL) has a higher volatility of 9.33% compared to Vanguard FTSE Emerging Markets ETF (VWO) at 6.29%. This indicates that VPL'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.

Volatility by Period

	VPL	VWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.33%	6.29%	+3.04%
Volatility (6M) Calculated over the trailing 6-month period	18.05%	13.80%	+4.25%
Volatility (1Y) Calculated over the trailing 1-year period	20.65%	16.37%	+4.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.53%	17.45%	+0.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.41%	19.23%	-1.82%

VPL vs. VWO - Expense Ratio Comparison

Both VPL and VWO have an expense ratio of 0.08%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VPL vs. VWO - Dividend Comparison

VPL's dividend yield for the trailing twelve months is around 2.88%, more than VWO's 2.49% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VPL Vanguard FTSE Pacific ETF	2.88%	4.01%	3.15%	3.12%	2.75%	3.19%	1.81%	2.84%	3.06%	2.57%	2.65%	2.43%
VWO Vanguard FTSE Emerging Markets ETF	2.49%	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 VPL and VWO in my portfolio?

VPL and VWO have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VPL or VWO?

VPL has higher volatility (9.33%) compared to VWO (6.29%). In terms of maximum drawdown, VPL dropped -55.49% vs VWO's -67.68%.

Which ETF is better, VPL or VWO?

On 10-year performance, VPL leads with 10.28% vs 8.60% for VWO. Both ETFs have the same 0.08% expense ratio. On volatility, VWO has been the lower-risk option at 6.29%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VPL or VWO?

Over the 10-year period, VPL has performed better with a 10.28% return vs 8.60%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VPL or VWO?

VPL and VWO have the same expense ratio: 0.08% per year.

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

VPL has the higher dividend yield at 2.88%, compared with 2.49% for VWO.

What is the main difference between VPL and VWO?

VPL is categorized as Asia Pacific Equities, while VWO is Emerging Markets Equities. VPL tracks FTSE Developed Asia Pacific Index, while VWO tracks FTSE Emerging Index.

Which has better risk-adjusted returns?

VPL currently has the higher Sharpe Ratio (2.17 vs 1.49), 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.