VWO vs. VEMAX

Last updated Jun 6, 2026

VWO (Vanguard FTSE Emerging Markets ETF) and VEMAX (Vanguard Emerging Markets Stock Index Fund Admiral Shares) are both Emerging Markets Equities funds from Vanguard. Over the past 10 years, VWO returned 8.24%/yr vs 8.78%/yr for VEMAX. Their correlation of 0.94 suggests significant overlap in exposure. VWO charges 0.08%/yr vs 0.14%/yr for VEMAX.

Performance

VWO vs. VEMAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Emerging Markets ETF (VWO) and Vanguard Emerging Markets Stock Index Fund Admiral Shares (VEMAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VWO achieves a 7.94% return, which is significantly lower than VEMAX's 12.42% return. Over the past 10 years, VWO has underperformed VEMAX with an annualized return of 8.24%, while VEMAX has yielded a comparatively higher 8.78% annualized return.

VWO

• 1D: -3.78%
• 1M: -4.48%
• YTD: 7.94%
• 6M: 8.77%
• 1Y: 24.19%
• 3Y*: 16.25%
• 5Y*: 4.36%
• 10Y*: 8.24%

VEMAX

• 1D: -0.14%
• 1M: -0.24%
• YTD: 12.42%
• 6M: 13.37%
• 1Y: 29.21%
• 3Y*: 18.09%
• 5Y*: 5.17%
• 10Y*: 8.78%

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

VWO vs. VEMAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VWO Vanguard FTSE Emerging Markets ETF	7.94%	25.60%	10.59%	9.25%	-17.98%	1.26%	15.17%	20.75%	-14.76%	31.49%
VEMAX Vanguard Emerging Markets Stock Index Fund Admiral Shares	12.42%	24.76%	11.34%	8.82%	-17.79%	0.85%	15.24%	20.29%	-14.59%	31.37%

Correlation

The correlation between VWO and VEMAX is 0.95, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since Jun 26, 2006	0.94

The correlation between VWO and VEMAX has been stable across timeframes, ranging from 0.94 to 0.96 - a consistent structural relationship.

VWO vs. VEMAX - Sectors Allocation Comparison

Sectors	VWO	VEMAX
Technology	29.6%	29.6%
Financial Services	19.5%	19.5%
Consumer Cyclical	10.7%	10.7%
Industrials	8.0%	8.0%
Basic Materials	8.0%	8.0%
Communication Services	7.1%	7.1%
Energy	4.6%	4.6%
Healthcare	3.9%	3.9%
Consumer Defensive	3.7%	3.7%
Utilities	2.9%	2.9%
Real Estate	2.2%	2.2%

Return for Risk

VWO vs. VEMAX — Risk / Return Rank

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

VWO

VWO Risk / Return Rank: 45
VWO Sharpe Ratio Rank: 44
VWO Sortino Ratio Rank: 42
VWO Omega Ratio Rank: 45
VWO Calmar Ratio Rank: 45
VWO Martin Ratio Rank: 48

VEMAX

VEMAX Risk / Return Rank: 52
VEMAX Sharpe Ratio Rank: 54
VEMAX Sortino Ratio Rank: 51
VEMAX Omega Ratio Rank: 52
VEMAX Calmar Ratio Rank: 53
VEMAX Martin Ratio Rank: 51

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. VEMAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets ETF (VWO) and Vanguard Emerging Markets Stock Index Fund Admiral Shares (VEMAX). 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.

	VWO	VEMAX	Difference
Sharpe ratio: Return per unit of total volatility	1.49	2.08	-0.60
Sortino ratio: Return per unit of downside risk	2.08	2.90	-0.82
Omega ratio: Gain probability vs. loss probability	1.28	1.38	-0.10
Calmar ratio: Return relative to maximum drawdown	2.18	2.71	-0.53
Martin ratio: Return relative to average drawdown	7.80	10.09	-2.29
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VWO vs. VEMAX - Sharpe Ratio Comparison

The current VWO Sharpe Ratio is 1.49, which is comparable to the VEMAX Sharpe Ratio of 2.08. The chart below compares the historical Sharpe Ratios of VWO and VEMAX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VWO	VEMAX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.49	2.08	-0.60
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.25	0.34	-0.09
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.43	0.54	-0.11
Sharpe Ratio (All Time) Calculated using the full available price history	0.26	0.29	-0.03

Drawdowns

VWO vs. VEMAX - Drawdown Comparison

The maximum VWO drawdown since its inception was -67.68%, roughly equal to the maximum VEMAX drawdown of -66.45%. Use the drawdown chart below to compare losses from any high point for VWO and VEMAX.

Drawdown Indicators

	VWO	VEMAX	Difference
Max Drawdown Largest peak-to-trough decline	-67.68%	-66.45%	-1.23%
Max Drawdown (1Y) Largest decline over 1 year	-11.17%	-11.05%	-0.12%
Max Drawdown (3Y) Largest decline over 3 years	-17.37%	-15.78%	-1.59%
Max Drawdown (5Y) Largest decline over 5 years	-32.60%	-32.55%	-0.05%
Max Drawdown (10Y) Largest decline over 10 years	-36.39%	-36.11%	-0.28%
Current Drawdown Current decline from peak	-5.16%	-1.36%	-3.80%
Average Drawdown Average peak-to-trough decline	-15.81%	-16.12%	+0.31%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.11%	2.96%	+0.15%

Volatility

VWO vs. VEMAX - Volatility Comparison

Vanguard FTSE Emerging Markets ETF (VWO) has a higher volatility of 6.29% compared to Vanguard Emerging Markets Stock Index Fund Admiral Shares (VEMAX) at 5.18%. This indicates that VWO's price experiences larger fluctuations and is considered to be riskier than VEMAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VWO	VEMAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.29%	5.18%	+1.11%
Volatility (6M) Calculated over the trailing 6-month period	13.79%	11.87%	+1.92%
Volatility (1Y) Calculated over the trailing 1-year period	16.33%	14.37%	+1.96%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.44%	15.38%	+2.06%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.23%	16.46%	+2.77%

VWO vs. VEMAX - Expense Ratio Comparison

VWO has a 0.08% expense ratio, which is lower than VEMAX's 0.14% 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. VEMAX - Dividend Comparison

VWO's dividend yield for the trailing twelve months is around 2.50%, more than VEMAX's 2.37% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VEMAX Vanguard Emerging Markets Stock Index Fund Admiral Shares	2.37%	2.74%	3.13%	3.47%	4.05%	2.57%	1.87%	3.20%	2.85%	2.31%	2.51%	3.25%
VWO Vanguard FTSE Emerging Markets ETF	2.50%	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 VEMAX in my portfolio?

With a correlation of 0.95, VWO and VEMAX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VWO or VEMAX?

VWO has higher volatility (6.29%) compared to VEMAX (5.18%). In terms of maximum drawdown, VWO dropped -67.68% vs VEMAX's -66.45%.

Which has better risk-adjusted returns?

VEMAX currently has the higher Sharpe Ratio (2.08 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.