VTMGX vs. VWO
Compare and contrast key facts about Vanguard Developed Markets Index Fund Admiral Shares (VTMGX) and Vanguard FTSE Emerging Markets ETF (VWO).
VTMGX is managed by Vanguard. It was launched on Aug 17, 1999. VWO is a passively managed fund by Vanguard that tracks the performance of the FTSE Emerging Index. It was launched on Mar 4, 2005.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VTMGX or VWO.
Key characteristics
| VTMGX | VWO | |
|---|---|---|
| YTD Return | 1.62% | 2.70% |
| 1Y Return | 8.45% | 8.98% |
| 3Y Return (Ann) | 1.68% | -4.17% |
| 5Y Return (Ann) | 6.18% | 2.66% |
| 10Y Return (Ann) | 4.48% | 3.16% |
| Sharpe Ratio | 0.67 | 0.63 |
| Daily Std Dev | 12.22% | 13.78% |
| Max Drawdown | -60.58% | -67.68% |
| Current Drawdown | -3.59% | -17.33% |
Correlation
The correlation between VTMGX and VWO is 0.80, 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.
Performance
VTMGX vs. VWO - Performance Comparison
In the year-to-date period, VTMGX achieves a 1.62% return, which is significantly lower than VWO's 2.70% return. Over the past 10 years, VTMGX has outperformed VWO with an annualized return of 4.48%, while VWO has yielded a comparatively lower 3.16% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VTMGX vs. VWO - Expense Ratio Comparison
VTMGX 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%.
Risk-Adjusted Performance
VTMGX vs. VWO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Developed Markets Index Fund Admiral Shares (VTMGX) 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
VTMGX vs. VWO - Dividend Comparison
VTMGX's dividend yield for the trailing twelve months is around 3.37%, less than VWO's 3.46% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VTMGX Vanguard Developed Markets Index Fund Admiral Shares | 3.37% | 3.14% | 2.88% | 3.14% | 2.02% | 3.03% | 3.33% | 2.77% | 3.06% | 2.91% | 3.70% | 2.61% |
VWO Vanguard FTSE Emerging Markets ETF | 3.46% | 3.52% | 4.11% | 2.63% | 1.91% | 3.23% | 2.88% | 2.30% | 2.52% | 3.26% | 2.86% | 2.73% |
Drawdowns
VTMGX vs. VWO - Drawdown Comparison
The maximum VTMGX drawdown since its inception was -60.58%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for VTMGX and VWO. For additional features, visit the drawdowns tool.
Volatility
VTMGX vs. VWO - Volatility Comparison
The current volatility for Vanguard Developed Markets Index Fund Admiral Shares (VTMGX) is 3.67%, while Vanguard FTSE Emerging Markets ETF (VWO) has a volatility of 3.89%. This indicates that VTMGX 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.