VWO vs. SPEM
Compare and contrast key facts about Vanguard FTSE Emerging Markets ETF (VWO) and SPDR Portfolio Emerging Markets ETF (SPEM).
VWO and SPEM are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VWO is a passively managed fund by Vanguard that tracks the performance of the FTSE Emerging Index. It was launched on Mar 4, 2005. SPEM is a passively managed fund by State Street that tracks the performance of the S&P Emerging Markets BMI. It was launched on Mar 19, 2007. Both VWO and SPEM are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VWO or SPEM.
Key characteristics
| VWO | SPEM | |
|---|---|---|
| YTD Return | 1.31% | 1.69% |
| 1Y Return | 5.48% | 7.06% |
| 3Y Return (Ann) | -3.92% | -3.27% |
| 5Y Return (Ann) | 2.15% | 2.54% |
| 10Y Return (Ann) | 3.17% | 3.63% |
| Sharpe Ratio | 0.49 | 0.61 |
| Daily Std Dev | 13.85% | 13.60% |
| Max Drawdown | -67.68% | -64.41% |
| Current Drawdown | -18.45% | -16.61% |
Correlation
The correlation between VWO and SPEM is 0.96, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VWO vs. SPEM - Performance Comparison
In the year-to-date period, VWO achieves a 1.31% return, which is significantly lower than SPEM's 1.69% return. Over the past 10 years, VWO has underperformed SPEM with an annualized return of 3.17%, while SPEM has yielded a comparatively higher 3.63% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
VWO vs. SPEM - Expense Ratio Comparison
Risk-Adjusted Performance
VWO vs. SPEM - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets ETF (VWO) and SPDR Portfolio Emerging Markets ETF (SPEM). 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.
Dividends
VWO vs. SPEM - Dividend Comparison
VWO's dividend yield for the trailing twelve months is around 3.50%, more than SPEM's 2.76% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VWO Vanguard FTSE Emerging Markets ETF | 3.50% | 3.52% | 4.11% | 2.63% | 1.91% | 3.23% | 2.88% | 2.30% | 2.52% | 3.26% | 2.86% | 2.73% |
SPEM SPDR Portfolio Emerging Markets ETF | 2.76% | 2.80% | 3.38% | 3.14% | 1.92% | 2.94% | 2.34% | 1.12% | 1.51% | 2.40% | 2.26% | 1.91% |
Drawdowns
VWO vs. SPEM - Drawdown Comparison
The maximum VWO drawdown since its inception was -67.68%, which is greater than SPEM's maximum drawdown of -64.41%. The drawdown chart below compares losses from any high point along the way for VWO and SPEM
Volatility
VWO vs. SPEM - Volatility Comparison
Vanguard FTSE Emerging Markets ETF (VWO) and SPDR Portfolio Emerging Markets ETF (SPEM) have volatilities of 3.01% and 3.08%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.