VSO.AX vs. SPEM

Last updated Jun 25, 2026

VSO.AX (Vanguard MSCI Australian Small Companies INDEX ETF) and SPEM (SPDR Portfolio Emerging Markets ETF) are both exchange-traded funds - VSO.AX is a Asia Pacific Equities fund tracking the MSCI Australian Shares Small Cap Index, while SPEM is a Emerging Markets Equities fund tracking the S&P Emerging BMI Index. Both are passively managed. Over the past 10 years, VSO.AX returned 8.46%/yr vs 10.42%/yr for SPEM. At a 0.12 correlation, their price movements are largely independent. VSO.AX charges 0.30%/yr vs 0.07%/yr for SPEM.

Performance

VSO.AX vs. SPEM - Performance Comparison

The chart below illustrates the hypothetical performance of a A$10,000 investment in Vanguard MSCI Australian Small Companies INDEX ETF (VSO.AX) and SPDR Portfolio Emerging Markets ETF (SPEM). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

VSO.AX is traded in AUD, while SPEM is traded in USD. To make them comparable, the SPEM values have been converted to AUD using the latest available exchange rates.

Returns By Period

In the year-to-date period, VSO.AX achieves a -4.82% return, which is significantly lower than SPEM's 6.81% return. Over the past 10 years, VSO.AX has underperformed SPEM with an annualized return of 8.46%, while SPEM has yielded a comparatively higher 10.42% annualized return.

VSO.AX

• 1D: -0.48%
• 1M: 0.26%
• YTD: -4.82%
• 6M: -5.70%
• 1Y: 10.96%
• 3Y*: 10.78%
• 5Y*: 4.62%
• 10Y*: 8.46%

SPEM

• 1D: -0.38%
• 1M: 3.91%
• YTD: 6.81%
• 6M: 7.50%
• 1Y: 17.14%
• 3Y*: 16.63%
• 5Y*: 7.44%
• 10Y*: 10.42%

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

VSO.AX vs. SPEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VSO.AX Vanguard MSCI Australian Small Companies INDEX ETF	-4.82%	24.14%	7.38%	3.70%	-13.32%	21.77%	14.75%	21.67%	-8.38%	15.95%
SPEM SPDR Portfolio Emerging Markets ETF	6.81%	16.51%	22.61%	10.59%	-12.47%	7.46%	4.49%	20.25%	-3.96%	24.55%

Correlation

The correlation between VSO.AX and SPEM is 0.14, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.14
Correlation (3Y) Calculated over the trailing 3-year period	0.12
Correlation (5Y) Calculated over the trailing 5-year period	0.11
Correlation (10Y) Calculated over the trailing 10-year period	0.10
Correlation (All Time) Calculated using the full available price history since May 23, 2011	0.12

Return for Risk

VSO.AX vs. SPEM — Risk / Return Rank

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

VSO.AX

VSO.AX Risk / Return Rank: 19
VSO.AX Sharpe Ratio Rank: 21
VSO.AX Sortino Ratio Rank: 19
VSO.AX Omega Ratio Rank: 20
VSO.AX Calmar Ratio Rank: 17
VSO.AX Martin Ratio Rank: 18

SPEM

SPEM Risk / Return Rank: 47
SPEM Sharpe Ratio Rank: 46
SPEM Sortino Ratio Rank: 44
SPEM Omega Ratio Rank: 47
SPEM Calmar Ratio Rank: 48
SPEM Martin Ratio Rank: 50

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.

VSO.AX vs. SPEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard MSCI Australian Small Companies INDEX ETF (VSO.AX) and SPDR Portfolio Emerging Markets ETF (SPEM). 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.

	VSO.AX	SPEM	Difference
Sharpe ratio: Return per unit of total volatility	0.65	1.33	-0.68
Sortino ratio: Return per unit of downside risk	1.00	1.98	-0.98
Omega ratio: Gain probability vs. loss probability	1.13	1.25	-0.12
Calmar ratio: Return relative to maximum drawdown	0.65	1.55	-0.90
Martin ratio: Return relative to average drawdown	1.75	5.38	-3.63

VSO.AX vs. SPEM - Sharpe Ratio Comparison

The current VSO.AX Sharpe Ratio is 0.65, which is lower than the SPEM Sharpe Ratio of 1.33. The chart below compares the historical Sharpe Ratios of VSO.AX and SPEM, 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

VSO.AX vs. SPEM - Drawdown Comparison

The maximum VSO.AX drawdown since its inception was -40.60%, smaller than the maximum SPEM drawdown of -46.68%. Use the drawdown chart below to compare losses from any high point for VSO.AX and SPEM.

Drawdown Indicators

	VSO.AX	SPEM	Difference
Max Drawdown Largest peak-to-trough decline	-40.60%	-46.68%	+6.08%
Max Drawdown (1Y) Largest decline over 1 year	-16.81%	-11.08%	-5.73%
Max Drawdown (3Y) Largest decline over 3 years	-16.81%	-11.08%	-5.73%
Max Drawdown (5Y) Largest decline over 5 years	-23.62%	-19.55%	-4.07%
Max Drawdown (10Y) Largest decline over 10 years	-40.60%	-21.64%	-18.96%
Current Drawdown Current decline from peak	-8.28%	-2.23%	-6.05%
Average Drawdown Average peak-to-trough decline	-6.77%	-11.73%	+4.96%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.36%	3.19%	+3.17%

Volatility

VSO.AX vs. SPEM - Volatility Comparison

The current volatility for Vanguard MSCI Australian Small Companies INDEX ETF (VSO.AX) is 5.25%, while SPDR Portfolio Emerging Markets ETF (SPEM) has a volatility of 5.71%. This indicates that VSO.AX experiences smaller price fluctuations and is considered to be less risky than SPEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSO.AX	SPEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.25%	5.71%	-0.46%
Volatility (6M) Calculated over the trailing 6-month period	14.14%	11.36%	+2.78%
Volatility (1Y) Calculated over the trailing 1-year period	16.74%	13.05%	+3.69%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.29%	13.34%	+2.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.90%	15.41%	+1.49%

VSO.AX vs. SPEM - Expense Ratio Comparison

VSO.AX has a 0.30% expense ratio, which is higher than SPEM's 0.07% expense ratio.

Dividends

VSO.AX vs. SPEM - Dividend Comparison

VSO.AX's dividend yield for the trailing twelve months is around 5.35%, more than SPEM's 2.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPEM SPDR Portfolio Emerging Markets ETF	2.54%	2.77%	2.78%	2.80%	3.38%	3.14%	1.92%	2.94%	2.34%	1.12%	1.51%	2.40%
VSO.AX Vanguard MSCI Australian Small Companies INDEX ETF	5.35%	6.86%	1.12%	1.48%	3.25%	3.55%	6.24%	2.96%	1.09%	2.57%	1.50%	1.08%

Frequently Asked Questions

Can I hold both VSO.AX and SPEM in my portfolio?

VSO.AX and SPEM have a correlation of 0.14, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VSO.AX or SPEM?

On fees, SPEM is cheaper at 0.07% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VSO.AX or SPEM?

SPEM is cheaper with a 0.07% expense ratio, compared with 0.30% for VSO.AX.

What is the main difference between VSO.AX and SPEM?

VSO.AX is categorized as Asia Pacific Equities, while SPEM is Emerging Markets Equities. VSO.AX tracks MSCI Australian Shares Small Cap Index, while SPEM tracks S&P Emerging BMI Index. They also come from different issuers: Vanguard and State Street. Their fees differ too: 0.30% for VSO.AX and 0.07% for SPEM.