VWO vs. EMSF

Last updated Aug 4, 2026

VWO (Vanguard FTSE Emerging Markets ETF) and EMSF (Matthews Emerging Markets Sustainable Future Active ETF) are both Emerging Markets Equities funds. VWO is passively managed, while EMSF is actively managed. Over the past year, VWO returned 22.33% vs 44.16% for EMSF. Their correlation of 0.89 means they have usually moved in the same direction. VWO charges 0.08%/yr vs 0.79%/yr for EMSF.

Performance

VWO vs. EMSF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Emerging Markets ETF (VWO) and Matthews Emerging Markets Sustainable Future Active ETF (EMSF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VWO achieves a 9.99% return, which is significantly lower than EMSF's 32.23% return.

VWO

• 1D: 0.53%
• 1M: 0.03%
• 6M: 4.14%
• YTD: 9.99%
• 1Y: 22.33%
• 3Y*: 15.67%
• 5Y*: 5.92%
• 10Y*: 7.69%
• ALL TIME*: 6.83%

EMSF

• 1D: 1.15%
• 1M: -7.30%
• 6M: 18.36%
• YTD: 32.23%
• 1Y: 44.16%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 16.34%

*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)
EMSF Matthews Emerging Markets Sustainable Future Active ETF	$153.53K	$123.94K	$184.31K
VWO Vanguard FTSE Emerging Markets ETF	$402.91M	$469.57M	$503.00M

VWO vs. EMSF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
VWO Vanguard FTSE Emerging Markets ETF	9.99%	25.60%	10.59%	7.13%
EMSF Matthews Emerging Markets Sustainable Future Active ETF	32.23%	19.20%	-3.09%	0.98%

Correlation

The correlation between VWO and EMSF is 0.91, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.91
Correlation (All Time) Calculated using the full available price history since Sep 22, 2023	0.89

The correlation between VWO and EMSF has been stable across timeframes, ranging from 0.89 to 0.91 - a consistent structural relationship.

VWO vs. EMSF - Sectors Allocation Comparison

Sectors	VWO	EMSF
Technology	34.2%	52.8%
Financial Services	19.4%	15.0%
Consumer Cyclical	9.1%	6.3%
Industrials	7.9%	11.0%
Basic Materials	7.2%	-
Communication Services	6.6%	1.7%
Energy	3.8%	-
Healthcare	3.7%	6.0%
Consumer Defensive	3.3%	3.6%
Utilities	2.8%	2.1%
Real Estate	2.0%	1.6%

Return for Risk

VWO vs. EMSF — Risk / Return Rank

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

VWO

VWO Risk / Return Rank: 52
VWO Sharpe Ratio Rank: 51
VWO Sortino Ratio Rank: 50
VWO Omega Ratio Rank: 51
VWO Calmar Ratio Rank: 55
VWO Martin Ratio Rank: 54

EMSF

EMSF Risk / Return Rank: 58
EMSF Sharpe Ratio Rank: 58
EMSF Sortino Ratio Rank: 54
EMSF Omega Ratio Rank: 58
EMSF Calmar Ratio Rank: 61
EMSF Martin Ratio Rank: 60

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.

VWO vs. EMSF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets ETF (VWO) and Matthews Emerging Markets Sustainable Future Active ETF (EMSF). 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.

	VWO	EMSF	Difference
Sharpe ratio: Return per unit of total volatility	1.28	1.48	-0.20
Sortino ratio: Return per unit of downside risk	1.81	1.98	-0.17
Omega ratio: Gain probability vs. loss probability	1.23	1.27	-0.03
Calmar ratio: Return relative to maximum drawdown	2.01	2.28	-0.27
Martin ratio: Return relative to average drawdown	6.52	7.54	-1.02

VWO vs. EMSF - Sharpe Ratio Comparison

The current VWO Sharpe Ratio is 1.28, which is comparable to the EMSF Sharpe Ratio of 1.48. The chart below compares the historical Sharpe Ratios of VWO and EMSF, 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

VWO vs. EMSF - Drawdown Comparison

The maximum VWO drawdown since its inception was -67.68%, which is greater than EMSF's maximum drawdown of -24.75%. Use the drawdown chart below to compare losses from any high point for VWO and EMSF.

Drawdown Indicators

	VWO	EMSF	Difference
Max Drawdown Largest peak-to-trough decline	-67.68%	-24.75%	-42.93%
Max Drawdown (1Y) Largest decline over 1 year	-11.17%	-19.49%	+8.32%
Max Drawdown (3Y) Largest decline over 3 years	-17.37%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-30.88%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-36.39%	—	—
Current Drawdown Current decline from peak	-3.56%	-14.65%	+11.09%
Average Drawdown Average peak-to-trough decline	-15.73%	-5.92%	-9.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.43%	5.87%	-2.44%

Volatility

VWO vs. EMSF - Volatility Comparison

The current volatility for Vanguard FTSE Emerging Markets ETF (VWO) is 5.60%, while Matthews Emerging Markets Sustainable Future Active ETF (EMSF) has a volatility of 10.75%. This indicates that VWO experiences smaller price fluctuations and is considered to be less risky than EMSF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VWO	EMSF	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.60%	10.75%	-5.15%
Volatility (6M) Calculated over the trailing 6-month period	15.08%	26.52%	-11.44%
Volatility (1Y) Calculated over the trailing 1-year period	17.60%	30.13%	-12.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.56%	24.39%	-6.83%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.17%	24.39%	-5.22%

VWO vs. EMSF - Expense Ratio Comparison

VWO has a 0.08% expense ratio, which is lower than EMSF's 0.79% expense ratio.

Dividends

VWO vs. EMSF - Dividend Comparison

VWO's dividend yield for the trailing twelve months is around 2.34%, more than EMSF's 1.42% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EMSF Matthews Emerging Markets Sustainable Future Active ETF	1.42%	1.88%	3.29%	0.02%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VWO Vanguard FTSE Emerging Markets ETF	2.34%	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 EMSF in my portfolio?

With a correlation of 0.91, VWO and EMSF 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, VWO or EMSF?

EMSF has higher volatility (10.75%) compared to VWO (5.60%). In terms of maximum drawdown, VWO dropped -67.68% vs EMSF's -24.75%.

Which ETF is better, VWO or EMSF?

On 1-year performance, EMSF leads with 44.16% vs 22.33% for VWO. On fees, VWO is cheaper at 0.08% per year. On volatility, VWO has been the lower-risk option at 5.60%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VWO or EMSF?

Over the 1-year period, EMSF has performed better with a 44.16% return vs 22.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VWO or EMSF?

VWO is cheaper with a 0.08% expense ratio, compared with 0.79% for EMSF.

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

VWO has the higher dividend yield at 2.34%, compared with 1.42% for EMSF.

What is the main difference between VWO and EMSF?

They also come from different issuers: Vanguard and Matthews. Their fees differ too: 0.08% for VWO and 0.79% for EMSF.

Which has better risk-adjusted returns?

EMSF currently has the higher Sharpe Ratio (1.48 vs 1.28), 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.