VWO vs. VEU
Compare and contrast key facts about Vanguard FTSE Emerging Markets ETF (VWO) and Vanguard FTSE All-World ex-US ETF (VEU).
VWO and VEU 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. VEU is a passively managed fund by Vanguard that tracks the performance of the FTSE All-World ex US Index. It was launched on Mar 2, 2007. Both VWO and VEU 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 VEU.
Key characteristics
| VWO | VEU | |
|---|---|---|
| YTD Return | 17.28% | 12.36% |
| 1Y Return | 28.36% | 26.46% |
| 3Y Return (Ann) | 0.11% | 2.72% |
| 5Y Return (Ann) | 5.93% | 7.19% |
| 10Y Return (Ann) | 4.30% | 5.70% |
| Sharpe Ratio | 1.90 | 2.00 |
| Sortino Ratio | 2.68 | 2.82 |
| Omega Ratio | 1.33 | 1.35 |
| Calmar Ratio | 1.01 | 1.43 |
| Martin Ratio | 11.91 | 13.54 |
| Ulcer Index | 2.34% | 1.88% |
| Daily Std Dev | 14.71% | 12.75% |
| Max Drawdown | -67.68% | -61.52% |
| Current Drawdown | -5.59% | -2.48% |
Correlation
The correlation between VWO and VEU is 0.89, 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. VEU - Performance Comparison
In the year-to-date period, VWO achieves a 17.28% return, which is significantly higher than VEU's 12.36% return. Over the past 10 years, VWO has underperformed VEU with an annualized return of 4.30%, while VEU has yielded a comparatively higher 5.70% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VWO vs. VEU - Expense Ratio Comparison
VWO has a 0.08% expense ratio, which is higher than VEU's 0.07% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
VWO vs. VEU - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets ETF (VWO) and Vanguard FTSE All-World ex-US ETF (VEU). 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. VEU - Dividend Comparison
VWO's dividend yield for the trailing twelve months is around 2.53%, less than VEU's 2.84% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VWO Vanguard FTSE Emerging Markets ETF | 2.53% | 3.52% | 4.11% | 2.63% | 1.91% | 3.23% | 2.88% | 2.30% | 2.52% | 3.26% | 2.86% | 2.73% |
VEU Vanguard FTSE All-World ex-US ETF | 2.84% | 3.32% | 3.12% | 3.08% | 2.00% | 3.10% | 3.27% | 2.66% | 2.96% | 2.95% | 3.52% | 2.66% |
Drawdowns
VWO vs. VEU - Drawdown Comparison
The maximum VWO drawdown since its inception was -67.68%, which is greater than VEU's maximum drawdown of -61.52%. Use the drawdown chart below to compare losses from any high point for VWO and VEU. For additional features, visit the drawdowns tool.
Volatility
VWO vs. VEU - Volatility Comparison
Vanguard FTSE Emerging Markets ETF (VWO) has a higher volatility of 7.14% compared to Vanguard FTSE All-World ex-US ETF (VEU) at 4.21%. This indicates that VWO's price experiences larger fluctuations and is considered to be riskier than VEU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.