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VWO vs. DEM
Performance
Return for Risk
Dividends
Drawdowns
Volatility

VWO vs. DEM

Last updated Apr 2, 2026

Compare and contrast key facts about Vanguard FTSE Emerging Markets ETF (VWO) and WisdomTree Emerging Markets Equity Income Fund (DEM).

VWO and DEM are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VWO is a passively managed fund by Vanguard that tracks the performance of the FTSE Emerging Index. It was launched on Mar 4, 2005. DEM is a passively managed fund by WisdomTree that tracks the performance of the WisdomTree Emerging Markets Equity income Index. It was launched on Jul 13, 2007. Both VWO and DEM 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

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.

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VWO vs. DEM - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VWO
Vanguard FTSE Emerging Markets ETF		0.84%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		6.43%21.29%4.46%20.93%-10.43%11.49%-5.84%19.84%-7.69%26.26%

Returns By Period

In the year-to-date period, VWO achieves a 0.84% return, which is significantly lower than DEM's 6.43% return. Over the past 10 years, VWO has underperformed DEM with an annualized return of 7.66%, while DEM has yielded a comparatively higher 9.07% annualized return.

VWO

1D
0.30%
1M
-5.29%
YTD
0.84%
6M
1.39%
1Y
22.71%
3Y*
13.84%
5Y*
3.90%
10Y*
7.66%

DEM

1D
-0.42%
1M
-3.09%
YTD
6.43%
6M
9.25%
1Y
22.28%
3Y*
15.25%
5Y*
8.57%
10Y*
9.07%
*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 Emerging Markets ETF

WisdomTree Emerging Markets Equity Income Fund

Often compared with VWO:
VWO vs. VEAVWO vs. IEMGVWO vs. VXUSVWO vs. EEMVWO vs. VTIVWO vs. VOOVWO vs. VEMAX
Often compared with DEM:
DEM vs. DVYEDEM vs. FNDEDEM vs. AVEMDEM vs. EEMDEM vs. DGREDEM vs. FEMKXDEM vs. VXUS

VWO vs. DEM - Expense Ratio Comparison

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

DEM
WisdomTree Emerging Markets Equity Income Fund
VWO
Vanguard FTSE Emerging Markets ETF

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: 7070
Overall Rank
VWO Sharpe Ratio Rank: 7070
Sharpe Ratio Rank
VWO Sortino Ratio Rank: 7070
Sortino Ratio Rank
VWO Omega Ratio Rank: 6969
Omega Ratio Rank
VWO Calmar Ratio Rank: 7171
Calmar Ratio Rank
VWO Martin Ratio Rank: 6868
Martin Ratio Rank
DEM
DEM Risk / Return Rank: 7777
Overall Rank
DEM Sharpe Ratio Rank: 7878
Sharpe Ratio Rank
DEM Sortino Ratio Rank: 7878
Sortino Ratio Rank
DEM Omega Ratio Rank: 7777
Omega Ratio Rank
DEM Calmar Ratio Rank: 7474
Calmar Ratio Rank
DEM Martin Ratio Rank: 8080
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.

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.

VWODEMDifference

Sharpe ratio

Return per unit of total volatility

1.28

1.49

-0.21

Sortino ratio

Return per unit of downside risk

1.80

2.06

-0.26

Omega ratio

Gain probability vs. loss probability

1.26

1.30

-0.04

Calmar ratio

Return relative to maximum drawdown

1.89

2.02

-0.13

Martin ratio

Return relative to average drawdown

7.18

9.16

-1.98

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 1.28, which is comparable to the DEM Sharpe Ratio of 1.49. The chart below compares the historical Sharpe Ratios of VWO and DEM, 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

VWODEMDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.28

1.49

-0.21

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.23

0.57

-0.34

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.40

0.51

-0.10

Sharpe Ratio (All Time)

Calculated using the full available price history

0.25

0.19

+0.06

Correlation

The correlation between VWO and DEM is 0.92, 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

VWO vs. DEM - Dividend Comparison

VWO's dividend yield for the trailing twelve months is around 2.68%, less than DEM's 4.23% yield.

TTM20252024202320222021202020192018201720162015
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%
DEM
WisdomTree Emerging Markets Equity Income Fund		4.23%4.88%5.24%5.49%8.62%5.87%4.21%4.78%4.47%3.67%3.63%5.21%

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.

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Drawdown Indicators

VWODEMDifference

Max Drawdown

Largest peak-to-trough decline

-67.68%

-51.85%

-15.83%

Max Drawdown (1Y)

Largest decline over 1 year

-12.23%

-11.24%

-0.99%

Max Drawdown (5Y)

Largest decline over 5 years

-32.80%

-27.18%

-5.62%

Max Drawdown (10Y)

Largest decline over 10 years

-36.39%

-37.79%

+1.40%

Current Drawdown

Current decline from peak

-8.13%

-4.98%

-3.15%

Average Drawdown

Average peak-to-trough decline

-15.93%

-13.01%

-2.92%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.22%

2.51%

+0.71%

Volatility

VWO vs. DEM - Volatility Comparison

Vanguard FTSE Emerging Markets ETF (VWO) has a higher volatility of 7.41% compared to WisdomTree Emerging Markets Equity Income Fund (DEM) at 6.73%. This indicates that VWO's price experiences larger fluctuations and is considered to be riskier than DEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VWODEMDifference

Volatility (1M)

Calculated over the trailing 1-month period

7.41%

6.73%

+0.68%

Volatility (6M)

Calculated over the trailing 6-month period

12.26%

10.06%

+2.20%

Volatility (1Y)

Calculated over the trailing 1-year period

17.83%

15.05%

+2.78%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.21%

15.23%

+1.98%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

19.18%

18.01%

+1.17%