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VWO vs. PRF
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VWO vs. PRF

Last updated Jun 16, 2026

VWO (Vanguard FTSE Emerging Markets ETF) and PRF (Invesco RAFI US 1000 ETF) are both exchange-traded funds - VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index, while PRF is a Large Cap Value Equities fund tracking the RAFI Fundamental Select US 1000 Index. Both are passively managed. Over the past 10 years, VWO returned 9.11%/yr vs 13.94%/yr for PRF. A 0.72 correlation means they provide meaningful diversification when combined. VWO charges 0.08%/yr vs 0.34%/yr for PRF.

Performance

VWO vs. PRF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Emerging Markets ETF (VWO) and Invesco RAFI US 1000 ETF (PRF). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VWO achieves a 13.17% return, which is significantly lower than PRF's 16.44% return. Over the past 10 years, VWO has underperformed PRF with an annualized return of 9.11%, while PRF has yielded a comparatively higher 13.94% annualized return.

VWO

1D
2.17%
1M
4.11%
YTD
13.17%
6M
15.35%
1Y
29.26%
3Y*
16.84%
5Y*
5.83%
10Y*
9.11%

PRF

1D
0.68%
1M
4.19%
YTD
16.44%
6M
16.00%
1Y
34.32%
3Y*
20.74%
5Y*
13.06%
10Y*
13.94%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VWO vs. PRF - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VWO
Vanguard FTSE Emerging Markets ETF		13.17%25.60%10.59%9.25%-17.98%1.26%15.17%20.75%-14.76%31.49%
PRF
Invesco RAFI US 1000 ETF		16.44%18.33%16.73%15.72%-7.79%31.12%7.78%27.42%-8.71%16.01%

Correlation

The correlation between VWO and PRF is 0.65, 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

0.65

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

0.59

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

0.60

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

0.63

Correlation (All Time)
Calculated using the full available price history since Dec 19, 2005

0.72

The correlation between VWO and PRF shifts across timeframes, from 0.59 (3 years) to 0.72 (all time), reflecting how their relationship changes across market environments.

VWO vs. PRF - Sectors Allocation Comparison

Sectors
VWO
PRF

Technology

29.6%
23.1%

Financial Services

19.5%
15.4%

Consumer Cyclical

10.7%
8.7%

Industrials

8.0%
8.9%

Basic Materials

8.0%
3.3%

Communication Services

7.1%
9.4%

Energy

4.6%
7.9%

Healthcare

3.9%
12.0%

Consumer Defensive

3.7%
6.0%

Utilities

2.9%
3.0%

Real Estate

2.2%
2.4%

Technology

VWO
29.6%
PRF
23.1%

Financial Services

VWO
19.5%
PRF
15.4%

Consumer Cyclical

VWO
10.7%
PRF
8.7%

Industrials

VWO
8.0%
PRF
8.9%

Basic Materials

VWO
8.0%
PRF
3.3%

Communication Services

VWO
7.1%
PRF
9.4%

Energy

VWO
4.6%
PRF
7.9%

Healthcare

VWO
3.9%
PRF
12.0%

Consumer Defensive

VWO
3.7%
PRF
6.0%

Utilities

VWO
2.9%
PRF
3.0%

Real Estate

VWO
2.2%
PRF
2.4%

Compare stocks, funds, or ETFs

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Vanguard FTSE Emerging Markets ETF

Invesco RAFI US 1000 ETF

Often compared with VWO:
VWO vs. VEAVWO vs. IEMGVWO vs. VXUSVWO vs. EEMVWO vs. VOOVWO vs. VTIVWO vs. VEMAX
Often compared with PRF:
PRF vs. SPYPRF vs. VOOPRF vs. RSPPRF vs. PFMPRF vs. VTVPRF vs. SCHDPRF vs. PXF

Return for Risk

VWO vs. PRF — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VWO
VWO Risk / Return Rank: 5858
Overall Rank
VWO Sharpe Ratio Rank: 5858
Sharpe Ratio Rank
VWO Sortino Ratio Rank: 5757
Sortino Ratio Rank
VWO Omega Ratio Rank: 6060
Omega Ratio Rank
VWO Calmar Ratio Rank: 5959
Calmar Ratio Rank
VWO Martin Ratio Rank: 5858
Martin Ratio Rank
PRF
PRF Risk / Return Rank: 9393
Overall Rank
PRF Sharpe Ratio Rank: 9494
Sharpe Ratio Rank
PRF Sortino Ratio Rank: 9494
Sortino Ratio Rank
PRF Omega Ratio Rank: 9393
Omega Ratio Rank
PRF Calmar Ratio Rank: 9191
Calmar Ratio Rank
PRF Martin Ratio Rank: 9393
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. PRF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets ETF (VWO) and Invesco RAFI US 1000 ETF (PRF). 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.

VWOPRFDifference
Sharpe ratioReturn per unit of total volatility
1.77
3.16

-1.39

Sortino ratioReturn per unit of downside risk
2.45
4.34

-1.89

Omega ratioGain probability vs. loss probability

1.33

1.58

-0.25

Calmar ratioReturn relative to maximum drawdown

2.63

5.23

-2.60

Martin ratioReturn relative to average drawdown

9.28

21.40

-12.12

VWO vs. PRF - Sharpe Ratio Comparison

The current VWO Sharpe Ratio is 1.77, which is lower than the PRF Sharpe Ratio of 3.16. The chart below compares the historical Sharpe Ratios of VWO and PRF, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

VWO vs. PRF - Drawdown Comparison

The maximum VWO drawdown since its inception was -67.68%, which is greater than PRF's maximum drawdown of -60.35%. Use the drawdown chart below to compare losses from any high point for VWO and PRF.

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Drawdown Indicators

VWOPRFDifference

Max Drawdown

Largest peak-to-trough decline

-67.68%

-60.35%

-7.33%

Max Drawdown (1Y)

Largest decline over 1 year

-11.17%

-6.59%

-4.58%

Max Drawdown (3Y)

Largest decline over 3 years

-17.37%

-15.82%

-1.55%

Max Drawdown (5Y)

Largest decline over 5 years

-32.60%

-19.72%

-12.88%

Max Drawdown (10Y)

Largest decline over 10 years

-36.39%

-38.16%

+1.77%

Current Drawdown

Current decline from peak

-0.57%

0.00%

-0.57%

Average Drawdown

Average peak-to-trough decline

-15.80%

-6.92%

-8.88%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.16%

1.61%

+1.55%

Volatility

VWO vs. PRF - Volatility Comparison

Vanguard FTSE Emerging Markets ETF (VWO) has a higher volatility of 6.98% compared to Invesco RAFI US 1000 ETF (PRF) at 3.64%. This indicates that VWO's price experiences larger fluctuations and is considered to be riskier than PRF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VWOPRFDifference

Volatility (1M)

Calculated over the trailing 1-month period

6.98%

3.64%

+3.34%

Volatility (6M)

Calculated over the trailing 6-month period

14.18%

8.18%

+6.00%

Volatility (1Y)

Calculated over the trailing 1-year period

16.62%

10.93%

+5.69%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.51%

15.24%

+2.27%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

19.24%

17.69%

+1.55%

VWO vs. PRF - Expense Ratio Comparison

VWO has a 0.08% expense ratio, which is lower than PRF's 0.34% expense ratio.

Dividends

VWO vs. PRF - Dividend Comparison

VWO's dividend yield for the trailing twelve months is around 2.38%, more than PRF's 1.36% yield.

PositionTTM20252024202320222021202020192018201720162015
PRF
Invesco RAFI US 1000 ETF		1.36%1.59%1.78%1.84%2.01%1.58%1.97%1.99%2.25%1.58%2.17%2.25%
VWO
Vanguard FTSE Emerging Markets ETF		2.38%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 PRF have a correlation of 0.65, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VWO has higher volatility (6.98%) compared to PRF (3.64%). In terms of maximum drawdown, VWO dropped -67.68% vs PRF's -60.35%.

On 10-year performance, PRF leads with 13.94% vs 9.11% for VWO. On fees, VWO is cheaper at 0.08% per year. On volatility, PRF has been the lower-risk option at 3.64%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, PRF has performed better with a 13.94% return vs 9.11%. 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 0.34% for PRF.

VWO has the higher dividend yield at 2.38%, compared with 1.36% for PRF.

VWO is categorized as Emerging Markets Equities, while PRF is Large Cap Value Equities. VWO tracks FTSE Emerging Index, while PRF tracks RAFI Fundamental Select US 1000 Index. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.08% for VWO and 0.34% for PRF.

PRF currently has the higher Sharpe Ratio (3.16 vs 1.77), 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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