VSS vs. VWO
Compare and contrast key facts about Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) and Vanguard FTSE Emerging Markets ETF (VWO).
VSS and VWO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VSS is a passively managed fund by Vanguard that tracks the performance of the FTSE Global Small Cap ex US Index. It was launched on Apr 2, 2009. VWO is a passively managed fund by Vanguard that tracks the performance of the FTSE Emerging Index. It was launched on Mar 4, 2005. Both VSS and VWO are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VSS or VWO.
Performance
VSS vs. VWO - Performance Comparison
Returns By Period
In the year-to-date period, VSS achieves a 3.38% return, which is significantly lower than VWO's 11.71% return. Over the past 10 years, VSS has outperformed VWO with an annualized return of 4.47%, while VWO has yielded a comparatively lower 3.36% annualized return.
VSS
3.38%
-4.31%
-0.59%
10.85%
4.68%
4.47%
VWO
11.71%
-4.06%
3.31%
15.58%
4.50%
3.36%
Key characteristics
| VSS | VWO | |
|---|---|---|
| Sharpe Ratio | 0.77 | 1.01 |
| Sortino Ratio | 1.12 | 1.50 |
| Omega Ratio | 1.14 | 1.19 |
| Calmar Ratio | 0.55 | 0.63 |
| Martin Ratio | 3.84 | 5.01 |
| Ulcer Index | 2.64% | 2.98% |
| Daily Std Dev | 13.16% | 14.73% |
| Max Drawdown | -43.51% | -67.68% |
| Current Drawdown | -9.39% | -10.08% |
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VSS vs. VWO - Expense Ratio Comparison
VSS 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%.
Correlation
The correlation between VSS and VWO is 0.86, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Risk-Adjusted Performance
VSS vs. VWO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) 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.
Dividends
VSS vs. VWO - Dividend Comparison
VSS's dividend yield for the trailing twelve months is around 2.94%, more than VWO's 2.65% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VSS Vanguard FTSE All-World ex-US Small-Cap ETF | 2.94% | 3.14% | 2.30% | 2.74% | 1.90% | 3.25% | 2.80% | 2.83% | 2.93% | 2.66% | 2.67% | 2.71% |
VWO Vanguard FTSE Emerging Markets ETF | 2.65% | 3.52% | 4.11% | 2.63% | 1.91% | 3.24% | 2.88% | 2.30% | 2.52% | 3.26% | 2.86% | 2.73% |
Drawdowns
VSS vs. VWO - Drawdown Comparison
The maximum VSS drawdown since its inception was -43.51%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for VSS and VWO. For additional features, visit the drawdowns tool.
Volatility
VSS vs. VWO - Volatility Comparison
The current volatility for Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) is 3.69%, while Vanguard FTSE Emerging Markets ETF (VWO) has a volatility of 4.49%. This indicates that VSS 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.