VWO vs. DEM

Last updated Jun 4, 2026

VWO (Vanguard FTSE Emerging Markets ETF) and DEM (WisdomTree Emerging Markets Equity Income Fund) are both Emerging Markets Equities funds - VWO tracks the FTSE Emerging Index while DEM tracks the WisdomTree Emerging Markets Equity income Index. Both are passively managed. Over the past 10 years, VWO returned 8.85%/yr vs 10.45%/yr for DEM. Their correlation of 0.92 suggests significant overlap in exposure. VWO charges 0.08%/yr vs 0.63%/yr for DEM.

Performance

VWO vs. DEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Emerging Markets ETF (VWO) and WisdomTree Emerging Markets Equity Income Fund (DEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VWO achieves a 12.22% return, which is significantly lower than DEM's 19.97% return. Over the past 10 years, VWO has underperformed DEM with an annualized return of 8.85%, while DEM has yielded a comparatively higher 10.45% annualized return.

VWO

• 1D: -1.41%
• 1M: 2.72%
• YTD: 12.22%
• 6M: 13.79%
• 1Y: 30.72%
• 3Y*: 18.02%
• 5Y*: 5.17%
• 10Y*: 8.85%

DEM

• 1D: -1.19%
• 1M: 6.63%
• YTD: 19.97%
• 6M: 20.75%
• 1Y: 32.23%
• 3Y*: 19.32%
• 5Y*: 9.57%
• 10Y*: 10.45%

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

VWO vs. DEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VWO Vanguard FTSE Emerging Markets ETF	12.22%	25.60%	10.59%	9.25%	-17.98%	1.26%	15.17%	20.75%	-14.76%	31.49%
DEM WisdomTree Emerging Markets Equity Income Fund	19.97%	21.29%	4.46%	20.93%	-10.43%	11.49%	-5.84%	19.84%	-7.69%	26.26%

Correlation

The correlation between VWO and DEM is 0.84, 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	0.84
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (10Y) Calculated over the trailing 10-year period	0.90
Correlation (All Time) Calculated using the full available price history since Jul 16, 2007	0.92

The correlation between VWO and DEM has been stable across timeframes, ranging from 0.84 to 0.92 - a consistent structural relationship.

VWO vs. DEM - Sectors Allocation Comparison

Sectors	VWO	DEM
Technology	29.6%	17.4%
Financial Services	19.5%	21.9%
Consumer Cyclical	10.7%	5.0%
Industrials	8.0%	9.5%
Basic Materials	8.0%	3.5%
Communication Services	7.1%	3.0%
Energy	4.6%	6.1%
Healthcare	3.9%	0.6%
Consumer Defensive	3.7%	5.8%
Utilities	2.9%	3.0%
Real Estate	2.2%	3.0%

Return for Risk

VWO vs. DEM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VWO

VWO Risk / Return Rank: 56
VWO Sharpe Ratio Rank: 56
VWO Sortino Ratio Rank: 55
VWO Omega Ratio Rank: 57
VWO Calmar Ratio Rank: 54
VWO Martin Ratio Rank: 56

DEM

DEM Risk / Return Rank: 74
DEM Sharpe Ratio Rank: 72
DEM Sortino Ratio Rank: 71
DEM Omega Ratio Rank: 71
DEM Calmar Ratio Rank: 79
DEM Martin Ratio Rank: 75

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.

VWO vs. DEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets ETF (VWO) and WisdomTree Emerging Markets Equity Income Fund (DEM). 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.

	VWO	DEM	Difference
Sharpe ratio: Return per unit of total volatility	1.94	2.38	-0.44
Sortino ratio: Return per unit of downside risk	2.69	3.28	-0.59
Omega ratio: Gain probability vs. loss probability	1.36	1.43	-0.07
Calmar ratio: Return relative to maximum drawdown	2.76	4.10	-1.34
Martin ratio: Return relative to average drawdown	9.96	14.52	-4.56
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VWO vs. DEM - Sharpe Ratio Comparison

The current VWO Sharpe Ratio is 1.94, which is comparable to the DEM Sharpe Ratio of 2.38. The chart below compares the historical Sharpe Ratios of VWO and DEM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VWO	DEM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.94	2.38	-0.44
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.30	0.63	-0.33
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.46	0.58	-0.12
Sharpe Ratio (All Time) Calculated using the full available price history	0.27	0.22	+0.05

Drawdowns

VWO vs. DEM - Drawdown Comparison

The maximum VWO drawdown since its inception was -67.68%, which is greater than DEM's maximum drawdown of -51.85%. Use the drawdown chart below to compare losses from any high point for VWO and DEM.

Drawdown Indicators

	VWO	DEM	Difference
Max Drawdown Largest peak-to-trough decline	-67.68%	-51.85%	-15.83%
Max Drawdown (1Y) Largest decline over 1 year	-11.17%	-7.89%	-3.28%
Max Drawdown (3Y) Largest decline over 3 years	-17.37%	-15.64%	-1.73%
Max Drawdown (5Y) Largest decline over 5 years	-32.64%	-27.18%	-5.46%
Max Drawdown (10Y) Largest decline over 10 years	-36.39%	-37.79%	+1.40%
Current Drawdown Current decline from peak	-1.41%	-1.19%	-0.22%
Average Drawdown Average peak-to-trough decline	-15.82%	-12.90%	-2.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.09%	2.22%	+0.87%

Volatility

VWO vs. DEM - Volatility Comparison

Vanguard FTSE Emerging Markets ETF (VWO) and WisdomTree Emerging Markets Equity Income Fund (DEM) have volatilities of 5.61% and 5.64%, 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

	VWO	DEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.61%	5.64%	-0.03%
Volatility (6M) Calculated over the trailing 6-month period	13.22%	11.33%	+1.89%
Volatility (1Y) Calculated over the trailing 1-year period	15.89%	13.59%	+2.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.37%	15.33%	+2.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.20%	17.96%	+1.24%

VWO vs. DEM - Expense Ratio Comparison

VWO has a 0.08% expense ratio, which is lower than DEM's 0.63% expense ratio.

Dividends

VWO vs. DEM - Dividend Comparison

VWO's dividend yield for the trailing twelve months is around 2.40%, less than DEM's 3.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DEM WisdomTree Emerging Markets Equity Income Fund	3.76%	4.88%	5.24%	5.49%	8.62%	5.87%	4.21%	4.78%	4.47%	3.67%	3.63%	5.21%
VWO Vanguard FTSE Emerging Markets ETF	2.40%	2.79%	3.20%	3.52%	4.11%	2.63%	1.91%	3.23%	2.88%	2.30%	2.52%	3.26%

Frequently Asked Questions

Can I hold both VWO and DEM in my portfolio?

VWO and DEM have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VWO or DEM?

DEM has higher volatility (5.64%) compared to VWO (5.61%). In terms of maximum drawdown, VWO dropped -67.68% vs DEM's -51.85%.

Which ETF is better, VWO or DEM?

On 10-year performance, DEM leads with 10.45% vs 8.85% for VWO. On fees, VWO is cheaper at 0.08% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VWO or DEM?

Over the 10-year period, DEM has performed better with a 10.45% return vs 8.85%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VWO or DEM?

VWO is cheaper with a 0.08% expense ratio, compared with 0.63% for DEM.

Which ETF pays a higher dividend yield, VWO or DEM?

DEM has the higher dividend yield at 3.76%, compared with 2.40% for VWO.

What is the main difference between VWO and DEM?

VWO tracks FTSE Emerging Index, while DEM tracks WisdomTree Emerging Markets Equity income Index. They also come from different issuers: Vanguard and WisdomTree. Their fees differ too: 0.08% for VWO and 0.63% for DEM.

Which has better risk-adjusted returns?

DEM currently has the higher Sharpe Ratio (2.38 vs 1.94), 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.