VWO vs. IGV

Last updated Jul 21, 2026

VWO (Vanguard FTSE Emerging Markets ETF) and IGV (iShares Expanded Tech-Software Sector ETF) are both exchange-traded funds - VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index, while IGV is a Technology Equities fund tracking the S&P North American Expanded Technology Software Index. Both are passively managed. Over the past 10 years, VWO returned 7.65%/yr vs 15.60%/yr for IGV. A 0.60 correlation means they provide meaningful diversification when combined. VWO charges 0.08%/yr vs 0.39%/yr for IGV.

Performance

VWO vs. IGV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Emerging Markets ETF (VWO) and iShares Expanded Tech-Software Sector ETF (IGV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VWO achieves a 7.88% return, which is significantly higher than IGV's -12.01% return. Over the past 10 years, VWO has underperformed IGV with an annualized return of 7.65%, while IGV has yielded a comparatively higher 15.60% annualized return.

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%

IGV

• 1D: 0.19%
• 1M: 4.37%
• 6M: -5.40%
• YTD: -12.01%
• 1Y: -16.26%
• 3Y*: 9.01%
• 5Y*: 3.20%
• 10Y*: 15.60%
• ALL TIME*: 9.30%

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

VWO vs. IGV - 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%
IGV iShares Expanded Tech-Software Sector ETF	-12.01%	5.56%	23.41%	58.56%	-35.65%	12.30%	52.86%	34.33%	12.44%	42.16%

Correlation

The correlation between VWO and IGV is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.35
Correlation (3Y) Calculated over the trailing 3-year period	0.42
Correlation (5Y) Calculated over the trailing 5-year period	0.50
Correlation (10Y) Calculated over the trailing 10-year period	0.52
Correlation (All Time) Calculated using the full available price history since Mar 10, 2005	0.60

Over the past year, the correlation between VWO and IGV has dropped to 0.35 - well below their long-term average of 0.60, suggesting their price drivers have been diverging.

VWO vs. IGV - Sectors Allocation Comparison

Sectors	VWO	IGV
Technology	31.4%	89.3%
Financial Services	16.8%	1.9%
Consumer Cyclical	8.6%	0.3%
Industrials	7.0%	0.1%
Basic Materials	7.0%	-
Communication Services	5.8%	8.3%
Energy	3.6%	-
Healthcare	3.4%	-
Consumer Defensive	3.2%	-
Utilities	2.4%	-
Real Estate	1.8%	-

Return for Risk

VWO vs. IGV — Risk / Return Rank

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

VWO

VWO Risk / Return Rank: 39
VWO Sharpe Ratio Rank: 37
VWO Sortino Ratio Rank: 36
VWO Omega Ratio Rank: 37
VWO Calmar Ratio Rank: 41
VWO Martin Ratio Rank: 44

IGV

IGV Risk / Return Rank: 5
IGV Sharpe Ratio Rank: 5
IGV Sortino Ratio Rank: 5
IGV Omega Ratio Rank: 5
IGV Calmar Ratio Rank: 6
IGV Martin Ratio Rank: 6

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. IGV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets ETF (VWO) and iShares Expanded Tech-Software Sector ETF (IGV). 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	IGV	Difference
Sharpe ratio: Return per unit of total volatility	1.03	-0.57	+1.60
Sortino ratio: Return per unit of downside risk	1.50	-0.65	+2.15
Omega ratio: Gain probability vs. loss probability	1.19	0.92	+0.27
Calmar ratio: Return relative to maximum drawdown	1.60	-0.45	+2.04
Martin ratio: Return relative to average drawdown	5.36	-0.86	+6.23

VWO vs. IGV - Sharpe Ratio Comparison

The current VWO Sharpe Ratio is 1.03, which is higher than the IGV Sharpe Ratio of -0.57. The chart below compares the historical Sharpe Ratios of VWO and IGV, 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. IGV - Drawdown Comparison

The maximum VWO drawdown since its inception was -67.68%, which is greater than IGV's maximum drawdown of -63.45%. Use the drawdown chart below to compare losses from any high point for VWO and IGV.

Drawdown Indicators

	VWO	IGV	Difference
Max Drawdown Largest peak-to-trough decline	-67.68%	-63.45%	-4.23%
Max Drawdown (1Y) Largest decline over 1 year	-11.17%	-36.61%	+25.44%
Max Drawdown (3Y) Largest decline over 3 years	-17.37%	-36.61%	+19.24%
Max Drawdown (5Y) Largest decline over 5 years	-30.88%	-45.85%	+14.97%
Max Drawdown (10Y) Largest decline over 10 years	-36.39%	-45.85%	+9.46%
Current Drawdown Current decline from peak	-5.40%	-21.05%	+15.65%
Average Drawdown Average peak-to-trough decline	-15.75%	-14.48%	-1.27%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.31%	18.89%	-15.58%

Volatility

VWO vs. IGV - Volatility Comparison

The current volatility for Vanguard FTSE Emerging Markets ETF (VWO) is 5.81%, while iShares Expanded Tech-Software Sector ETF (IGV) has a volatility of 7.17%. This indicates that VWO experiences smaller price fluctuations and is considered to be less risky than IGV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VWO	IGV	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.81%	7.17%	-1.36%
Volatility (6M) Calculated over the trailing 6-month period	14.93%	25.18%	-10.25%
Volatility (1Y) Calculated over the trailing 1-year period	17.32%	28.69%	-11.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.60%	28.08%	-10.48%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.14%	26.41%	-7.27%

VWO vs. IGV - Expense Ratio Comparison

VWO has a 0.08% expense ratio, which is lower than IGV's 0.39% expense ratio.

Dividends

VWO vs. IGV - Dividend Comparison

VWO's dividend yield for the trailing twelve months is around 2.39%, more than IGV's 0.02% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IGV iShares Expanded Tech-Software Sector ETF	0.02%	0.00%	0.00%	0.01%	0.01%	0.00%	0.35%	0.02%	0.16%	0.09%	0.82%	0.22%
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

Can I hold both VWO and IGV in my portfolio?

VWO and IGV have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VWO or IGV?

IGV has higher volatility (7.17%) compared to VWO (5.81%). In terms of maximum drawdown, VWO dropped -67.68% vs IGV's -63.45%.

Which ETF is better, VWO or IGV?

On 10-year performance, IGV leads with 15.60% vs 7.65% for VWO. On fees, VWO is cheaper at 0.08% per year. On volatility, VWO has been the lower-risk option at 5.81%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VWO or IGV?

Over the 10-year period, IGV has performed better with a 15.60% return vs 7.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VWO or IGV?

VWO is cheaper with a 0.08% expense ratio, compared with 0.39% for IGV.

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

VWO has the higher dividend yield at 2.39%, compared with 0.02% for IGV.

What is the main difference between VWO and IGV?

VWO is categorized as Emerging Markets Equities, while IGV is Technology Equities. VWO tracks FTSE Emerging Index, while IGV tracks S&P North American Expanded Technology Software Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.08% for VWO and 0.39% for IGV.

Which has better risk-adjusted returns?

VWO currently has the higher Sharpe Ratio (1.03 vs -0.57), 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.