VWO vs. DGS
VWO (Vanguard FTSE Emerging Markets ETF) and DGS (WisdomTree Emerging Markets SmallCap Dividend Fund) are both exchange-traded funds - VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index, while DGS is a Emerging Markets Diversified fund tracking the WisdomTree Emerging Markets SmallCap Dividend Index. Both are passively managed. Over the past 10 years, VWO returned 8.60%/yr vs 9.58%/yr for DGS. Their correlation of 0.91 suggests significant overlap in exposure. VWO charges 0.08%/yr vs 0.58%/yr for DGS.
Performance
VWO vs. DGS - Performance Comparison
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Returns By Period
In the year-to-date period, VWO achieves a 8.50% return, which is significantly lower than DGS's 10.39% return. Over the past 10 years, VWO has underperformed DGS with an annualized return of 8.60%, while DGS has yielded a comparatively higher 9.58% annualized return.
VWO
- 1D
- 0.52%
- 1M
- -3.65%
- YTD
- 8.50%
- 6M
- 9.73%
- 1Y
- 24.29%
- 3Y*
- 16.22%
- 5Y*
- 4.65%
- 10Y*
- 8.60%
DGS
- 1D
- -0.13%
- 1M
- -4.21%
- YTD
- 10.39%
- 6M
- 12.57%
- 1Y
- 20.98%
- 3Y*
- 13.95%
- 5Y*
- 7.24%
- 10Y*
- 9.58%
VWO vs. DGS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VWO Vanguard FTSE Emerging Markets ETF | 8.50% | 25.60% | 10.59% | 9.25% | -17.98% | 1.26% | 15.17% | 20.75% | -14.76% | 31.49% |
DGS WisdomTree Emerging Markets SmallCap Dividend Fund | 10.39% | 21.18% | 1.13% | 19.08% | -12.35% | 15.33% | 4.06% | 18.90% | -16.52% | 37.47% |
Correlation
The correlation between VWO and DGS is 0.86, 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 | 0.86 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.88 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.88 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.90 |
Correlation (All Time) Calculated using the full available price history since Oct 31, 2007 | 0.91 |
The correlation between VWO and DGS has been stable across timeframes, ranging from 0.86 to 0.91 - a consistent structural relationship.
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Return for Risk
VWO vs. DGS — Risk / Return Rank
VWO
DGS
VWO vs. DGS - 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 SmallCap Dividend Fund (DGS). 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 | DGS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.18 | ||
| Sortino ratioReturn per unit of downside risk | +0.26 | ||
| Omega ratioGain probability vs. loss probability | 1.28 | 1.24 | +0.04 |
| Calmar ratioReturn relative to maximum drawdown | 2.18 | 2.09 | +0.09 |
| Martin ratioReturn relative to average drawdown | 7.79 | 6.97 | +0.82 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VWO | DGS | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.49 | 1.31 | +0.18 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.27 | 0.49 | -0.22 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.45 | 0.55 | -0.11 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.26 | 0.22 | +0.04 |
Drawdowns
VWO vs. DGS - Drawdown Comparison
The maximum VWO drawdown since its inception was -67.68%, which is greater than DGS's maximum drawdown of -61.83%. Use the drawdown chart below to compare losses from any high point for VWO and DGS.
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Drawdown Indicators
| VWO | DGS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -67.68% | -61.83% | -5.85% |
Max Drawdown (1Y)Largest decline over 1 year | -11.17% | -10.06% | -1.11% |
Max Drawdown (3Y)Largest decline over 3 years | -17.37% | -19.31% | +1.94% |
Max Drawdown (5Y)Largest decline over 5 years | -32.60% | -24.86% | -7.74% |
Max Drawdown (10Y)Largest decline over 10 years | -36.39% | -44.08% | +7.69% |
Current DrawdownCurrent decline from peak | -4.67% | -4.96% | +0.29% |
Average DrawdownAverage peak-to-trough decline | -15.81% | -12.58% | -3.23% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.12% | 3.02% | +0.10% |
Volatility
VWO vs. DGS - Volatility Comparison
Vanguard FTSE Emerging Markets ETF (VWO) and WisdomTree Emerging Markets SmallCap Dividend Fund (DGS) have volatilities of 6.29% and 6.33%, 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.
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Volatility by Period
| VWO | DGS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.29% | 6.33% | -0.04% |
Volatility (6M)Calculated over the trailing 6-month period | 13.80% | 13.70% | +0.10% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.37% | 16.12% | +0.25% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.45% | 14.97% | +2.48% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 19.23% | 17.36% | +1.87% |
VWO vs. DGS - Expense Ratio Comparison
VWO has a 0.08% expense ratio, which is lower than DGS's 0.58% expense ratio.
Dividends
VWO vs. DGS - Dividend Comparison
VWO's dividend yield for the trailing twelve months is around 2.49%, less than DGS's 3.33% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DGS WisdomTree Emerging Markets SmallCap Dividend Fund | 3.33% | 3.45% | 3.36% | 4.55% | 5.34% | 3.98% | 3.69% | 3.95% | 4.24% | 2.81% | 3.42% | 3.28% |
VWO Vanguard FTSE Emerging Markets ETF | 2.49% | 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
VWO and DGS have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
DGS has higher volatility (6.33%) compared to VWO (6.29%). In terms of maximum drawdown, VWO dropped -67.68% vs DGS's -61.83%.
On 10-year performance, DGS leads with 9.58% vs 8.60% 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.
Over the 10-year period, DGS has performed better with a 9.58% return vs 8.60%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VWO is cheaper with a 0.08% expense ratio, compared with 0.58% for DGS.
DGS has the higher dividend yield at 3.33%, compared with 2.49% for VWO.
VWO is categorized as Emerging Markets Equities, while DGS is Emerging Markets Diversified. VWO tracks FTSE Emerging Index, while DGS tracks WisdomTree Emerging Markets SmallCap Dividend Index. They also come from different issuers: Vanguard and WisdomTree. Their fees differ too: 0.08% for VWO and 0.58% for DGS.
VWO currently has the higher Sharpe Ratio (1.49 vs 1.31), 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.
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