VWO vs. EQLT

Last updated Jun 6, 2026

VWO (Vanguard FTSE Emerging Markets ETF) and EQLT (iShares MSCI Emerging Markets Quality Factor ETF) are both Emerging Markets Equities funds - VWO tracks the FTSE Emerging Index while EQLT tracks the MSCI Emerging Markets Quality Factor Select Index. Both are passively managed. Over the past year, VWO returned 24.19% vs 50.41% for EQLT. Their correlation of 0.93 suggests significant overlap in exposure. VWO charges 0.08%/yr vs 0.35%/yr for EQLT.

Performance

VWO vs. EQLT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Emerging Markets ETF (VWO) and iShares MSCI Emerging Markets Quality Factor ETF (EQLT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VWO achieves a 7.94% return, which is significantly lower than EQLT's 24.32% return.

VWO

• 1D: -3.78%
• 1M: -4.48%
• YTD: 7.94%
• 6M: 8.77%
• 1Y: 24.19%
• 3Y*: 16.25%
• 5Y*: 4.36%
• 10Y*: 8.24%

EQLT

• 1D: -5.42%
• 1M: -2.91%
• YTD: 24.32%
• 6M: 26.72%
• 1Y: 50.41%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VWO vs. EQLT - Yearly Performance Comparison

	2026 (YTD)	2025	2024
VWO Vanguard FTSE Emerging Markets ETF	7.94%	25.60%	3.99%
EQLT iShares MSCI Emerging Markets Quality Factor ETF	24.32%	33.93%	-1.29%

Correlation

The correlation between VWO and EQLT is 0.91, 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	0.91
Correlation (All Time) Calculated using the full available price history since Sep 9, 2024	0.93

The correlation between VWO and EQLT has been stable across timeframes, ranging from 0.91 to 0.93 - a consistent structural relationship.

VWO vs. EQLT - Sectors Allocation Comparison

Sectors	VWO	EQLT
Technology	29.6%	40.7%
Financial Services	19.5%	16.8%
Consumer Cyclical	10.7%	9.0%
Industrials	8.0%	7.4%
Basic Materials	8.0%	6.7%
Communication Services	7.1%	6.4%
Energy	4.6%	3.8%
Healthcare	3.9%	2.4%
Consumer Defensive	3.7%	3.3%
Utilities	2.9%	2.4%
Real Estate	2.2%	1.1%

Return for Risk

VWO vs. EQLT — Risk / Return Rank

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

VWO

VWO Risk / Return Rank: 45
VWO Sharpe Ratio Rank: 44
VWO Sortino Ratio Rank: 42
VWO Omega Ratio Rank: 45
VWO Calmar Ratio Rank: 45
VWO Martin Ratio Rank: 48

EQLT

EQLT Risk / Return Rank: 78
EQLT Sharpe Ratio Rank: 77
EQLT Sortino Ratio Rank: 71
EQLT Omega Ratio Rank: 77
EQLT Calmar Ratio Rank: 83
EQLT Martin Ratio Rank: 85

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. EQLT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets ETF (VWO) and iShares MSCI Emerging Markets Quality Factor ETF (EQLT). 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	EQLT	Difference
Sharpe ratio: Return per unit of total volatility	1.49	2.32	-0.83
Sortino ratio: Return per unit of downside risk	2.08	2.98	-0.91
Omega ratio: Gain probability vs. loss probability	1.28	1.42	-0.14
Calmar ratio: Return relative to maximum drawdown	2.18	4.22	-2.05
Martin ratio: Return relative to average drawdown	7.80	16.79	-8.99
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. EQLT - Sharpe Ratio Comparison

The current VWO Sharpe Ratio is 1.49, which is lower than the EQLT Sharpe Ratio of 2.32. The chart below compares the historical Sharpe Ratios of VWO and EQLT, 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	EQLT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.49	2.32	-0.83
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.25	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.43	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.26	1.59	-1.33

Drawdowns

VWO vs. EQLT - Drawdown Comparison

The maximum VWO drawdown since its inception was -67.68%, which is greater than EQLT's maximum drawdown of -17.38%. Use the drawdown chart below to compare losses from any high point for VWO and EQLT.

Drawdown Indicators

	VWO	EQLT	Difference
Max Drawdown Largest peak-to-trough decline	-67.68%	-17.38%	-50.30%
Max Drawdown (1Y) Largest decline over 1 year	-11.17%	-12.00%	+0.83%
Max Drawdown (3Y) Largest decline over 3 years	-17.37%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-32.60%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-36.39%	—	—
Current Drawdown Current decline from peak	-5.16%	-7.21%	+2.05%
Average Drawdown Average peak-to-trough decline	-15.81%	-3.61%	-12.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.11%	3.01%	+0.10%

Volatility

VWO vs. EQLT - Volatility Comparison

The current volatility for Vanguard FTSE Emerging Markets ETF (VWO) is 6.29%, while iShares MSCI Emerging Markets Quality Factor ETF (EQLT) has a volatility of 10.88%. This indicates that VWO experiences smaller price fluctuations and is considered to be less risky than EQLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VWO	EQLT	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.29%	10.88%	-4.59%
Volatility (6M) Calculated over the trailing 6-month period	13.79%	19.64%	-5.85%
Volatility (1Y) Calculated over the trailing 1-year period	16.33%	21.83%	-5.50%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.44%	20.94%	-3.50%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.23%	20.94%	-1.71%

VWO vs. EQLT - Expense Ratio Comparison

VWO has a 0.08% expense ratio, which is lower than EQLT's 0.35% expense ratio.

Dividends

VWO vs. EQLT - Dividend Comparison

VWO's dividend yield for the trailing twelve months is around 2.50%, less than EQLT's 2.78% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EQLT iShares MSCI Emerging Markets Quality Factor ETF	2.78%	3.10%	0.51%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VWO Vanguard FTSE Emerging Markets ETF	2.50%	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 EQLT in my portfolio?

With a correlation of 0.91, VWO and EQLT 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 EQLT?

EQLT has higher volatility (10.88%) compared to VWO (6.29%). In terms of maximum drawdown, VWO dropped -67.68% vs EQLT's -17.38%.

Which ETF is better, VWO or EQLT?

On 1-year performance, EQLT leads with 50.41% vs 24.19% for VWO. On fees, VWO is cheaper at 0.08% per year. On volatility, VWO has been the lower-risk option at 6.29%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VWO or EQLT?

Over the 1-year period, EQLT has performed better with a 50.41% return vs 24.19%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VWO or EQLT?

VWO is cheaper with a 0.08% expense ratio, compared with 0.35% for EQLT.

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

EQLT has the higher dividend yield at 2.78%, compared with 2.50% for VWO.

What is the main difference between VWO and EQLT?

VWO tracks FTSE Emerging Index, while EQLT tracks MSCI Emerging Markets Quality Factor Select Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.08% for VWO and 0.35% for EQLT.

Which has better risk-adjusted returns?

EQLT currently has the higher Sharpe Ratio (2.32 vs 1.49), 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.