VTWAX vs. ACWI

Last updated Aug 4, 2026

VTWAX (Vanguard Total World Stock Index Fund Admiral Shares) and ACWI (iShares MSCI ACWI ETF) are both Global Equities funds - VTWAX tracks the FTSE Global All Cap Index while ACWI tracks the MSCI All Country World Index. Both are passively managed. Over the past 5 years, VTWAX returned 10.59%/yr vs 10.91%/yr for ACWI. Their 0.99 correlation means they have historically moved very closely together. VTWAX charges 0.09%/yr vs 0.32%/yr for ACWI.

Performance

VTWAX vs. ACWI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total World Stock Index Fund Admiral Shares (VTWAX) and iShares MSCI ACWI ETF (ACWI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTWAX achieves a 11.25% return, which is significantly lower than ACWI's 12.35% return.

VTWAX

• 1D: 0.40%
• 1M: -0.02%
• 6M: 7.43%
• YTD: 11.25%
• 1Y: 23.69%
• 3Y*: 18.20%
• 5Y*: 10.59%
• 10Y*: —
• ALL TIME*: 13.44%

ACWI

• 1D: 0.97%
• 1M: 1.15%
• 6M: 8.65%
• YTD: 12.35%
• 1Y: 24.97%
• 3Y*: 19.75%
• 5Y*: 10.91%
• 10Y*: 12.51%
• ALL TIME*: 8.52%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
ACWI iShares MSCI ACWI ETF	$355.08M	$458.17M	$501.32M
VTWAX Vanguard Total World Stock Index Fund Admiral Shares	$0.00	$0.00	$0.00

VTWAX vs. ACWI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
VTWAX Vanguard Total World Stock Index Fund Admiral Shares	11.25%	22.43%	16.43%	21.85%	-18.02%	18.17%	16.67%	17.53%
ACWI iShares MSCI ACWI ETF	12.35%	22.41%	17.45%	22.27%	-18.39%	18.66%	16.34%	16.39%

Correlation

The correlation between VTWAX and ACWI is 0.99 - they have historically moved very closely together. At this level, their price movements offset little of one another.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.99
Correlation (3Y) Balances recent behavior with more history.	0.99
Correlation (5Y) Shows whether the relationship held over a longer period.	1.00
Correlation (All Time) Calculated using the full available price history since Feb 7, 2019	0.99

The correlation between VTWAX and ACWI has been stable across timeframes, ranging from 0.99 to 1.00 - a consistent structural relationship.

VTWAX vs. ACWI - Sectors Allocation Comparison

Sectors	VTWAX	ACWI
Technology	31.2%	32.7%
Financial Services	15.7%	16.0%
Industrials	11.7%	10.8%
Consumer Cyclical	9.0%	8.7%
Healthcare	8.3%	8.3%
Communication Services	7.4%	8.0%
Consumer Defensive	4.5%	4.7%
Basic Materials	3.8%	3.4%
Energy	3.6%	3.6%
Utilities	2.5%	2.4%
Real Estate	2.3%	1.6%

Return for Risk

VTWAX vs. ACWI — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VTWAX

VTWAX Risk / Return Rank: 67
VTWAX Sharpe Ratio Rank: 66
VTWAX Sortino Ratio Rank: 62
VTWAX Omega Ratio Rank: 62
VTWAX Calmar Ratio Rank: 67
VTWAX Martin Ratio Rank: 76

ACWI

ACWI Risk / Return Rank: 77
ACWI Sharpe Ratio Rank: 77
ACWI Sortino Ratio Rank: 76
ACWI Omega Ratio Rank: 76
ACWI Calmar Ratio Rank: 73
ACWI Martin Ratio Rank: 81

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VTWAX vs. ACWI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total World Stock Index Fund Admiral Shares (VTWAX) and iShares MSCI ACWI ETF (ACWI). 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.

	VTWAX	ACWI	Difference
Sharpe ratio: Return per unit of total volatility	1.64	1.80	-0.16
Sortino ratio: Return per unit of downside risk	2.28	2.49	-0.21
Omega ratio: Gain probability vs. loss probability	1.30	1.32	-0.03
Calmar ratio: Return relative to maximum drawdown	2.32	2.58	-0.26
Martin ratio: Return relative to average drawdown	9.68	10.76	-1.08

VTWAX vs. ACWI - Sharpe Ratio Comparison

The current VTWAX Sharpe Ratio is 1.64, which is comparable to the ACWI Sharpe Ratio of 1.80. The chart below compares the historical Sharpe Ratios of VTWAX and ACWI, 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

VTWAX vs. ACWI - Drawdown Comparison

The maximum VTWAX drawdown since its inception was -34.20%, smaller than the maximum ACWI drawdown of -56.00%. Use the drawdown chart below to compare losses from any high point for VTWAX and ACWI.

Drawdown Indicators

	VTWAX	ACWI	Difference
Max Drawdown Largest peak-to-trough decline	-34.20%	-56.00%	+21.80%
Max Drawdown (1Y) Largest decline over 1 year	-9.64%	-9.73%	+0.09%
Max Drawdown (3Y) Largest decline over 3 years	-16.43%	-16.55%	+0.12%
Max Drawdown (5Y) Largest decline over 5 years	-26.40%	-26.42%	+0.02%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.53%	—
Current Drawdown Current decline from peak	-1.68%	-0.63%	-1.05%
Average Drawdown Average peak-to-trough decline	-5.23%	-8.55%	+3.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.30%	2.33%	-0.03%

Volatility

VTWAX vs. ACWI - Volatility Comparison

Vanguard Total World Stock Index Fund Admiral Shares (VTWAX) and iShares MSCI ACWI ETF (ACWI) have volatilities of 3.96% and 4.14%, 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.

Volatility by Period

	VTWAX	ACWI	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.96%	4.14%	-0.18%
Volatility (6M) Calculated over the trailing 6-month period	11.36%	11.71%	-0.35%
Volatility (1Y) Calculated over the trailing 1-year period	13.64%	13.99%	-0.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.89%	16.23%	-0.34%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.16%	17.07%	+1.09%

VTWAX vs. ACWI - Expense Ratio Comparison

VTWAX has a 0.09% expense ratio, which is lower than ACWI's 0.32% expense ratio.

Dividends

VTWAX vs. ACWI - Dividend Comparison

VTWAX's dividend yield for the trailing twelve months is around 1.56%, more than ACWI's 1.42% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ACWI iShares MSCI ACWI ETF	1.42%	1.55%	1.70%	1.88%	1.79%	1.71%	1.43%	2.33%	2.18%	1.94%	2.19%	2.56%
VTWAX Vanguard Total World Stock Index Fund Admiral Shares	1.56%	1.80%	1.92%	2.06%	2.17%	1.79%	1.64%	2.28%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VTWAX and ACWI in my portfolio?

With a correlation of 0.99, VTWAX and ACWI move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VTWAX or ACWI?

ACWI has higher volatility (4.14%) compared to VTWAX (3.96%). In terms of maximum drawdown, VTWAX dropped -34.20% vs ACWI's -56.00%.

Which has better risk-adjusted returns?

ACWI currently has the higher Sharpe Ratio (1.80 vs 1.64), 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.