PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan
VWO vs. IWN
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VWO vs. IWN

Last updated Jun 13, 2026

VWO (Vanguard FTSE Emerging Markets ETF) and IWN (iShares Russell 2000 Value ETF) are both exchange-traded funds - VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index, while IWN is a Small Cap Value Equities fund tracking the Russell 2000 Value Index. Both are passively managed. Over the past 10 years, VWO returned 9.00%/yr vs 10.58%/yr for IWN. A 0.65 correlation means they provide meaningful diversification when combined. VWO charges 0.08%/yr vs 0.24%/yr for IWN.

Performance

VWO vs. IWN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Emerging Markets ETF (VWO) and iShares Russell 2000 Value ETF (IWN). The values are adjusted to include any dividend payments, if applicable.

Loading charts...

Returns By Period

In the year-to-date period, VWO achieves a 10.77% return, which is significantly lower than IWN's 20.82% return. Over the past 10 years, VWO has underperformed IWN with an annualized return of 9.00%, while IWN has yielded a comparatively higher 10.58% annualized return.

VWO

1D
0.76%
1M
-0.65%
YTD
10.77%
6M
12.57%
1Y
24.61%
3Y*
16.61%
5Y*
5.03%
10Y*
9.00%

IWN

1D
1.17%
1M
4.34%
YTD
20.82%
6M
17.48%
1Y
42.26%
3Y*
17.41%
5Y*
6.89%
10Y*
10.58%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VWO vs. IWN - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VWO
Vanguard FTSE Emerging Markets ETF		10.77%25.60%10.59%9.25%-17.98%1.26%15.17%20.75%-14.76%31.49%
IWN
iShares Russell 2000 Value ETF		20.82%12.40%7.63%14.56%-14.77%27.96%4.66%22.01%-13.01%7.69%

Correlation

The correlation between VWO and IWN is 0.62, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.62

Correlation (3Y)
Calculated over the trailing 3-year period

0.56

Correlation (5Y)
Calculated over the trailing 5-year period

0.58

Correlation (10Y)
Calculated over the trailing 10-year period

0.56

Correlation (All Time)
Calculated using the full available price history since Mar 10, 2005

0.65

The correlation between VWO and IWN has been stable across timeframes, ranging from 0.56 to 0.65 - a consistent structural relationship.

VWO vs. IWN - Sectors Allocation Comparison

Sectors
VWO
IWN

Technology

29.6%
12.4%

Financial Services

19.5%
24.2%

Consumer Cyclical

10.7%
8.7%

Industrials

8.0%
11.1%

Basic Materials

8.0%
5.4%

Communication Services

7.1%
1.6%

Energy

4.6%
9.2%

Healthcare

3.9%
8.8%

Consumer Defensive

3.7%
2.0%

Utilities

2.9%
5.7%

Real Estate

2.2%
10.2%

Technology

VWO
29.6%
IWN
12.4%

Financial Services

VWO
19.5%
IWN
24.2%

Consumer Cyclical

VWO
10.7%
IWN
8.7%

Industrials

VWO
8.0%
IWN
11.1%

Basic Materials

VWO
8.0%
IWN
5.4%

Communication Services

VWO
7.1%
IWN
1.6%

Energy

VWO
4.6%
IWN
9.2%

Healthcare

VWO
3.9%
IWN
8.8%

Consumer Defensive

VWO
3.7%
IWN
2.0%

Utilities

VWO
2.9%
IWN
5.7%

Real Estate

VWO
2.2%
IWN
10.2%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard FTSE Emerging Markets ETF

iShares Russell 2000 Value ETF

Often compared with VWO:
VWO vs. VEAVWO vs. IEMGVWO vs. VXUSVWO vs. EEMVWO vs. VOOVWO vs. VTIVWO vs. VEMAX
Often compared with IWN:
IWN vs. IWMIWN vs. IWOIWN vs. VTWOIWN vs. IJSIWN vs. IWSIWN vs. IWVIWN vs. IWX

Return for Risk

VWO vs. IWN — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VWO
VWO Risk / Return Rank: 5050
Overall Rank
VWO Sharpe Ratio Rank: 4949
Sharpe Ratio Rank
VWO Sortino Ratio Rank: 4747
Sortino Ratio Rank
VWO Omega Ratio Rank: 5151
Omega Ratio Rank
VWO Calmar Ratio Rank: 5050
Calmar Ratio Rank
VWO Martin Ratio Rank: 5252
Martin Ratio Rank
IWN
IWN Risk / Return Rank: 8585
Overall Rank
IWN Sharpe Ratio Rank: 8484
Sharpe Ratio Rank
IWN Sortino Ratio Rank: 8484
Sortino Ratio Rank
IWN Omega Ratio Rank: 7878
Omega Ratio Rank
IWN Calmar Ratio Rank: 9191
Calmar Ratio Rank
IWN Martin Ratio Rank: 8888
Martin Ratio Rank
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. IWN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets ETF (VWO) and iShares Russell 2000 Value ETF (IWN). 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.

VWOIWNDifference
Sharpe ratioReturn per unit of total volatility
1.49
2.35

-0.85

Sortino ratioReturn per unit of downside risk
2.10
3.27

-1.17

Omega ratioGain probability vs. loss probability

1.28

1.40

-0.12

Calmar ratioReturn relative to maximum drawdown

2.21

5.02

-2.81

Martin ratioReturn relative to average drawdown

7.80

16.91

-9.11

VWO vs. IWN - Sharpe Ratio Comparison

The current VWO Sharpe Ratio is 1.49, which is lower than the IWN Sharpe Ratio of 2.35. The chart below compares the historical Sharpe Ratios of VWO and IWN, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Loading charts...

Drawdowns

VWO vs. IWN - Drawdown Comparison

The maximum VWO drawdown since its inception was -67.68%, which is greater than IWN's maximum drawdown of -61.55%. Use the drawdown chart below to compare losses from any high point for VWO and IWN.

Loading charts...

Drawdown Indicators

VWOIWNDifference

Max Drawdown

Largest peak-to-trough decline

-67.68%

-61.55%

-6.13%

Max Drawdown (1Y)

Largest decline over 1 year

-11.17%

-8.45%

-2.72%

Max Drawdown (3Y)

Largest decline over 3 years

-17.37%

-26.70%

+9.33%

Max Drawdown (5Y)

Largest decline over 5 years

-32.60%

-26.70%

-5.90%

Max Drawdown (10Y)

Largest decline over 10 years

-36.39%

-46.08%

+9.69%

Current Drawdown

Current decline from peak

-2.68%

0.00%

-2.68%

Average Drawdown

Average peak-to-trough decline

-15.80%

-10.15%

-5.65%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.17%

2.51%

+0.66%

Volatility

VWO vs. IWN - Volatility Comparison

Vanguard FTSE Emerging Markets ETF (VWO) has a higher volatility of 6.64% compared to iShares Russell 2000 Value ETF (IWN) at 5.80%. This indicates that VWO's price experiences larger fluctuations and is considered to be riskier than IWN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Loading charts...

Volatility by Period

VWOIWNDifference

Volatility (1M)

Calculated over the trailing 1-month period

6.64%

5.80%

+0.84%

Volatility (6M)

Calculated over the trailing 6-month period

14.04%

12.25%

+1.79%

Volatility (1Y)

Calculated over the trailing 1-year period

16.54%

18.09%

-1.55%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.48%

21.47%

-3.99%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

19.22%

23.41%

-4.19%

VWO vs. IWN - Expense Ratio Comparison

VWO has a 0.08% expense ratio, which is lower than IWN's 0.24% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VWO vs. IWN - Dividend Comparison

VWO's dividend yield for the trailing twelve months is around 2.44%, more than IWN's 1.42% yield.

PositionTTM20252024202320222021202020192018201720162015
IWN
iShares Russell 2000 Value ETF		1.42%1.70%1.80%2.04%2.12%1.48%1.60%1.92%1.99%1.78%1.74%2.15%
VWO
Vanguard FTSE Emerging Markets ETF		2.44%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 IWN have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VWO has higher volatility (6.64%) compared to IWN (5.80%). In terms of maximum drawdown, VWO dropped -67.68% vs IWN's -61.55%.

On 10-year performance, IWN leads with 10.58% vs 9.00% for VWO. On fees, VWO is cheaper at 0.08% per year. On volatility, IWN has been the lower-risk option at 5.80%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, IWN has performed better with a 10.58% return vs 9.00%. 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 0.24% for IWN.

VWO has the higher dividend yield at 2.44%, compared with 1.42% for IWN.

VWO is categorized as Emerging Markets Equities, while IWN is Small Cap Value Equities. VWO tracks FTSE Emerging Index, while IWN tracks Russell 2000 Value Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.08% for VWO and 0.24% for IWN.

IWN currently has the higher Sharpe Ratio (2.35 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.

Portfolio Optimizer

Find the right allocation for VWO and IWN

Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.

Open Portfolio Optimizer