VWO vs. IBM
VWO (Vanguard FTSE Emerging Markets ETF) is Emerging Markets Equities fund tracking the FTSE Emerging Index, while IBM (International Business Machines Corporation) is a stock. Over the past 10 years, VWO returned 7.65%/yr vs 7.64%/yr for IBM. At a 0.47 correlation, their price movements are largely independent.
Performance
VWO vs. IBM - Performance Comparison
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Returns By Period
In the year-to-date period, VWO achieves a 7.88% return, which is significantly higher than IBM's -27.15% return. Both investments have delivered pretty close results over the past 10 years, with VWO having a 7.65% annualized return and IBM not far behind at 7.64%.
VWO
- 1D
- 0.16%
- 1M
- -4.67%
- 6M
- 3.57%
- YTD
- 7.88%
- 1Y
- 17.74%
- 3Y*
- 15.34%
- 5Y*
- 5.14%
- 10Y*
- 7.65%
- ALL TIME*
- 6.75%
IBM
- 1D
- 0.16%
- 1M
- -14.49%
- 6M
- -29.40%
- YTD
- -27.15%
- 1Y
- -23.58%
- 3Y*
- 19.09%
- 5Y*
- 13.91%
- 10Y*
- 7.64%
- ALL TIME*
- 7.00%
VWO vs. IBM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VWO Vanguard FTSE Emerging Markets ETF | 7.88% | 25.60% | 10.59% | 9.25% | -17.98% | 1.26% | 15.17% | 20.75% | -14.76% | 31.49% |
IBM International Business Machines Corporation | -27.15% | 38.23% | 39.27% | 21.85% | 10.64% | 16.65% | -1.16% | 23.58% | -22.56% | -3.99% |
Correlation
The correlation between VWO and IBM is 0.19, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.19 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.26 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.29 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.36 |
Correlation (All Time) Calculated using the full available price history since Mar 10, 2005 | 0.47 |
Over the past year, the correlation between VWO and IBM has dropped to 0.19 - well below their long-term average of 0.47, suggesting their price drivers have been diverging.
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Return for Risk
VWO vs. IBM — Risk / Return Rank
VWO
IBM
VWO vs. IBM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets ETF (VWO) and International Business Machines Corporation (IBM). 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 | IBM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.52 | ||
| Sortino ratioReturn per unit of downside risk | +1.88 | ||
| Omega ratioGain probability vs. loss probability | 1.19 | 0.94 | +0.25 |
| Calmar ratioReturn relative to maximum drawdown | 1.60 | -0.66 | +2.26 |
| Martin ratioReturn relative to average drawdown | 5.36 | -1.53 | +6.90 |
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Drawdowns
VWO vs. IBM - Drawdown Comparison
The maximum VWO drawdown since its inception was -67.68%, roughly equal to the maximum IBM drawdown of -69.40%. Use the drawdown chart below to compare losses from any high point for VWO and IBM.
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Drawdown Indicators
| VWO | IBM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -67.68% | -69.40% | +1.72% |
Max Drawdown (1Y)Largest decline over 1 year | -11.17% | -35.85% | +24.68% |
Max Drawdown (3Y)Largest decline over 3 years | -17.37% | -35.85% | +18.48% |
Max Drawdown (5Y)Largest decline over 5 years | -30.88% | -35.85% | +4.97% |
Max Drawdown (10Y)Largest decline over 10 years | -36.39% | -40.59% | +4.20% |
Current DrawdownCurrent decline from peak | -5.40% | -35.30% | +29.90% |
Average DrawdownAverage peak-to-trough decline | -15.75% | -20.12% | +4.37% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.31% | 15.44% | -12.13% |
Volatility
VWO vs. IBM - Volatility Comparison
The current volatility for Vanguard FTSE Emerging Markets ETF (VWO) is 5.81%, while International Business Machines Corporation (IBM) has a volatility of 32.02%. This indicates that VWO experiences smaller price fluctuations and is considered to be less risky than IBM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VWO | IBM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.81% | 32.02% | -26.21% |
Volatility (6M)Calculated over the trailing 6-month period | 14.93% | 46.34% | -31.41% |
Volatility (1Y)Calculated over the trailing 1-year period | 17.32% | 48.36% | -31.04% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.60% | 29.86% | -12.26% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 19.14% | 27.97% | -8.83% |
Dividends
VWO vs. IBM - Dividend Comparison
VWO's dividend yield for the trailing twelve months is around 2.39%, less than IBM's 3.16% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IBM International Business Machines Corporation | 3.16% | 2.27% | 3.03% | 4.05% | 4.68% | 4.74% | 5.17% | 4.80% | 5.46% | 3.85% | 3.31% | 3.63% |
VWO Vanguard FTSE Emerging Markets ETF | 2.39% | 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 IBM have a correlation of 0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IBM has higher volatility (32.02%) compared to VWO (5.81%). In terms of maximum drawdown, VWO dropped -67.68% vs IBM's -69.40%.
VWO currently has the higher Sharpe Ratio (1.03 vs -0.49), 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.
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