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VSS vs. DGS
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VSS vs. DGS

Last updated Jun 4, 2026

VSS (Vanguard FTSE All-World ex-US Small-Cap ETF) and DGS (WisdomTree Emerging Markets SmallCap Dividend Fund) are both exchange-traded funds - VSS is a Foreign Small & Mid Cap Equities fund tracking the FTSE Global Small Cap ex US Index, while DGS is a Emerging Markets Diversified fund tracking the WisdomTree Emerging Markets SmallCap Dividend Index. Both are passively managed. Over the past 10 years, VSS returned 8.07%/yr vs 9.93%/yr for DGS. Their correlation of 0.87 suggests significant overlap in exposure. VSS charges 0.07%/yr vs 0.58%/yr for DGS.

Performance

VSS vs. DGS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) and WisdomTree Emerging Markets SmallCap Dividend Fund (DGS). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VSS achieves a 10.57% return, which is significantly lower than DGS's 14.53% return. Over the past 10 years, VSS has underperformed DGS with an annualized return of 8.07%, while DGS has yielded a comparatively higher 9.93% annualized return.

VSS

1D
-1.12%
1M
1.27%
YTD
10.57%
6M
13.10%
1Y
27.32%
3Y*
16.67%
5Y*
5.76%
10Y*
8.07%

DGS

1D
-1.37%
1M
2.58%
YTD
14.53%
6M
15.57%
1Y
27.26%
3Y*
16.17%
5Y*
7.85%
10Y*
9.93%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VSS vs. DGS - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VSS
Vanguard FTSE All-World ex-US Small-Cap ETF		10.57%29.61%2.94%15.52%-21.48%13.05%11.81%21.36%-18.48%30.61%
DGS
WisdomTree Emerging Markets SmallCap Dividend Fund		14.53%21.18%1.13%19.08%-12.35%15.33%4.06%18.90%-16.52%37.47%

Correlation

The correlation between VSS and DGS is 0.89, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.89

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

0.87

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

0.87

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

0.86

Correlation (All Time)
Calculated using the full available price history since Apr 7, 2009

0.87

The correlation between VSS and DGS has been stable across timeframes, ranging from 0.86 to 0.89 - a consistent structural relationship.

Compare stocks, funds, or ETFs

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

Vanguard FTSE All-World ex-US Small-Cap ETF

WisdomTree Emerging Markets SmallCap Dividend Fund

Often compared with VSS:
VSS vs. AVDVVSS vs. VEUVSS vs. VXUSVSS vs. SCHCVSS vs. SCZVSS vs. VWOVSS vs. VOO
Often compared with DGS:
DGS vs. AVESDGS vs. AVEEDGS vs. AVDVDGS vs. DLSDGS vs. AVEMDGS vs. VWODGS vs. IVAL

Return for Risk

VSS vs. DGS — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VSS
VSS Risk / Return Rank: 5151
Overall Rank
VSS Sharpe Ratio Rank: 5353
Sharpe Ratio Rank
VSS Sortino Ratio Rank: 5151
Sortino Ratio Rank
VSS Omega Ratio Rank: 5454
Omega Ratio Rank
VSS Calmar Ratio Rank: 4747
Calmar Ratio Rank
VSS Martin Ratio Rank: 5353
Martin Ratio Rank
DGS
DGS Risk / Return Rank: 5151
Overall Rank
DGS Sharpe Ratio Rank: 5050
Sharpe Ratio Rank
DGS Sortino Ratio Rank: 4949
Sortino Ratio Rank
DGS Omega Ratio Rank: 5050
Omega Ratio Rank
DGS Calmar Ratio Rank: 5454
Calmar Ratio Rank
DGS Martin Ratio Rank: 5353
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.

VSS vs. DGS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) and WisdomTree Emerging Markets SmallCap Dividend Fund (DGS). 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.

VSSDGSDifference
Sharpe ratioReturn per unit of total volatility
1.85
1.76

+0.09

Sortino ratioReturn per unit of downside risk
2.54
2.43

+0.11

Omega ratioGain probability vs. loss probability

1.34

1.32

+0.02

Calmar ratioReturn relative to maximum drawdown

2.36

2.72

-0.36

Martin ratioReturn relative to average drawdown

9.13

9.16

-0.03

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VSS vs. DGS - Sharpe Ratio Comparison

The current VSS Sharpe Ratio is 1.85, which is comparable to the DGS Sharpe Ratio of 1.76. The chart below compares the historical Sharpe Ratios of VSS and DGS, 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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Sharpe Ratios by Period

VSSDGSDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.85

1.76

+0.09

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.35

0.53

-0.18

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.47

0.58

-0.11

Sharpe Ratio (All Time)

Calculated using the full available price history

0.55

0.23

+0.32

Drawdowns

VSS vs. DGS - Drawdown Comparison

The maximum VSS drawdown since its inception was -43.51%, smaller than the maximum DGS drawdown of -61.83%. Use the drawdown chart below to compare losses from any high point for VSS and DGS.

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Drawdown Indicators

VSSDGSDifference

Max Drawdown

Largest peak-to-trough decline

-43.51%

-61.83%

+18.32%

Max Drawdown (1Y)

Largest decline over 1 year

-11.62%

-10.06%

-1.56%

Max Drawdown (3Y)

Largest decline over 3 years

-15.73%

-19.31%

+3.58%

Max Drawdown (5Y)

Largest decline over 5 years

-33.93%

-24.86%

-9.07%

Max Drawdown (10Y)

Largest decline over 10 years

-43.51%

-44.08%

+0.57%

Current Drawdown

Current decline from peak

-2.58%

-1.40%

-1.18%

Average Drawdown

Average peak-to-trough decline

-9.64%

-12.59%

+2.95%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.00%

2.98%

+0.02%

Volatility

VSS vs. DGS - Volatility Comparison

Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) and WisdomTree Emerging Markets SmallCap Dividend Fund (DGS) have volatilities of 5.33% and 5.24%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VSSDGSDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.33%

5.24%

+0.09%

Volatility (6M)

Calculated over the trailing 6-month period

12.64%

13.03%

-0.39%

Volatility (1Y)

Calculated over the trailing 1-year period

14.81%

15.56%

-0.75%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

16.46%

14.87%

+1.59%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

17.27%

17.32%

-0.05%

VSS vs. DGS - Expense Ratio Comparison

VSS has a 0.07% expense ratio, which is lower than DGS's 0.58% expense ratio.

Dividends

VSS vs. DGS - Dividend Comparison

VSS's dividend yield for the trailing twelve months is around 3.07%, less than DGS's 3.21% yield.

PositionTTM20252024202320222021202020192018201720162015
DGS
WisdomTree Emerging Markets SmallCap Dividend Fund		3.21%3.45%3.36%4.55%5.34%3.98%3.69%3.95%4.24%2.81%3.42%3.28%
VSS
Vanguard FTSE All-World ex-US Small-Cap ETF		3.07%3.39%3.44%3.14%2.30%2.74%1.90%3.25%2.80%2.83%2.93%2.66%

Frequently Asked Questions

VSS and DGS have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VSS has higher volatility (5.33%) compared to DGS (5.24%). In terms of maximum drawdown, VSS dropped -43.51% vs DGS's -61.83%.

On 10-year performance, DGS leads with 9.93% vs 8.07% for VSS. On fees, VSS is cheaper at 0.07% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, DGS has performed better with a 9.93% return vs 8.07%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VSS is cheaper with a 0.07% expense ratio, compared with 0.58% for DGS.

DGS has the higher dividend yield at 3.21%, compared with 3.07% for VSS.

VSS is categorized as Foreign Small & Mid Cap Equities, while DGS is Emerging Markets Diversified. VSS tracks FTSE Global Small Cap ex US Index, while DGS tracks WisdomTree Emerging Markets SmallCap Dividend Index. They also come from different issuers: Vanguard and WisdomTree. Their fees differ too: 0.07% for VSS and 0.58% for DGS.

VSS currently has the higher Sharpe Ratio (1.85 vs 1.76), 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.

Portfolio Optimizer

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