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VSS vs. VWO
Performance
Return for Risk
Dividends
Drawdowns
Volatility

VSS vs. VWO

Last updated Apr 1, 2026

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.

Performance

VSS vs. VWO - 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 Vanguard FTSE Emerging Markets ETF (VWO). The values are adjusted to include any dividend payments, if applicable.

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VSS vs. VWO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VSS
Vanguard FTSE All-World ex-US Small-Cap ETF		1.72%29.61%2.94%15.52%-21.48%13.05%11.81%21.36%-18.48%30.61%
VWO
Vanguard FTSE Emerging Markets ETF		0.54%25.60%10.59%9.25%-17.98%1.26%15.17%20.75%-14.76%31.49%

Returns By Period

In the year-to-date period, VSS achieves a 1.72% return, which is significantly higher than VWO's 0.54% return. Over a longer period, both investments have demonstrated similar performance, with their 10-year annualized returns being quite close: VSS at 7.63% and VWO at 7.63%.

VSS

1D
3.06%
1M
-8.91%
YTD
1.72%
6M
4.71%
1Y
30.55%
3Y*
13.84%
5Y*
5.38%
10Y*
7.63%

VWO

1D
3.11%
1M
-6.97%
YTD
0.54%
6M
1.72%
1Y
22.75%
3Y*
13.73%
5Y*
3.84%
10Y*
7.63%
*Multi-year figures are annualized to reflect compound growth (CAGR)

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

Vanguard FTSE Emerging Markets ETF

Often compared with VSS:
VSS vs. AVDVVSS vs. VEUVSS vs. VXUSVSS vs. SCHCVSS vs. SCZVSS vs. VOOVSS vs. VBR
Often compared with VWO:
VWO vs. VEAVWO vs. IEMGVWO vs. VXUSVWO vs. EEMVWO vs. VTIVWO vs. VOOVWO vs. VEMAX

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%.

VWO
Vanguard FTSE Emerging Markets ETF
VSS
Vanguard FTSE All-World ex-US Small-Cap ETF

Return for Risk

VSS vs. VWO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VSS
VSS Risk / Return Rank: 8989
Overall Rank
VSS Sharpe Ratio Rank: 9090
Sharpe Ratio Rank
VSS Sortino Ratio Rank: 9090
Sortino Ratio Rank
VSS Omega Ratio Rank: 9191
Omega Ratio Rank
VSS Calmar Ratio Rank: 8787
Calmar Ratio Rank
VSS Martin Ratio Rank: 8888
Martin Ratio Rank
VWO
VWO Risk / Return Rank: 7474
Overall Rank
VWO Sharpe Ratio Rank: 7575
Sharpe Ratio Rank
VWO Sortino Ratio Rank: 7575
Sortino Ratio Rank
VWO Omega Ratio Rank: 7474
Omega Ratio Rank
VWO Calmar Ratio Rank: 7575
Calmar Ratio Rank
VWO Martin Ratio Rank: 7474
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. VWO - 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 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.

VSSVWODifference

Sharpe ratio

Return per unit of total volatility

1.88

1.28

+0.60

Sortino ratio

Return per unit of downside risk

2.50

1.81

+0.69

Omega ratio

Gain probability vs. loss probability

1.38

1.26

+0.12

Calmar ratio

Return relative to maximum drawdown

2.54

1.85

+0.69

Martin ratio

Return relative to average drawdown

10.09

7.12

+2.97

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. VWO - Sharpe Ratio Comparison

The current VSS Sharpe Ratio is 1.88, which is higher than the VWO Sharpe Ratio of 1.28. The chart below compares the historical Sharpe Ratios of VSS and VWO, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

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Sharpe Ratios by Period

VSSVWODifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.88

1.28

+0.60

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.33

0.22

+0.11

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.45

0.40

+0.05

Sharpe Ratio (All Time)

Calculated using the full available price history

0.52

0.25

+0.27

Correlation

The correlation between VSS and VWO is 0.85, 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.

Dividends

VSS vs. VWO - Dividend Comparison

VSS's dividend yield for the trailing twelve months is around 3.33%, more than VWO's 2.68% yield.

TTM20252024202320222021202020192018201720162015
VSS
Vanguard FTSE All-World ex-US Small-Cap ETF		3.33%3.39%3.44%3.14%2.30%2.74%1.90%3.25%2.80%2.83%2.93%2.66%
VWO
Vanguard FTSE Emerging Markets ETF		2.68%2.79%3.20%3.52%4.11%2.63%1.91%3.23%2.88%2.30%2.52%3.26%

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.

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Drawdown Indicators

VSSVWODifference

Max Drawdown

Largest peak-to-trough decline

-43.51%

-67.68%

+24.17%

Max Drawdown (1Y)

Largest decline over 1 year

-11.62%

-12.23%

+0.61%

Max Drawdown (5Y)

Largest decline over 5 years

-33.93%

-32.80%

-1.13%

Max Drawdown (10Y)

Largest decline over 10 years

-43.51%

-36.39%

-7.12%

Current Drawdown

Current decline from peak

-8.91%

-8.41%

-0.50%

Average Drawdown

Average peak-to-trough decline

-9.72%

-15.93%

+6.21%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.93%

3.18%

-0.25%

Volatility

VSS vs. VWO - Volatility Comparison

The current volatility for Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) is 7.61%, while Vanguard FTSE Emerging Markets ETF (VWO) has a volatility of 8.17%. 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.

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Volatility by Period

VSSVWODifference

Volatility (1M)

Calculated over the trailing 1-month period

7.61%

8.17%

-0.56%

Volatility (6M)

Calculated over the trailing 6-month period

11.00%

12.26%

-1.26%

Volatility (1Y)

Calculated over the trailing 1-year period

16.37%

17.83%

-1.46%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

16.26%

17.21%

-0.95%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

17.17%

19.18%

-2.01%