VWO vs. VGLT
VWO (Vanguard FTSE Emerging Markets ETF) and VGLT (Vanguard Long-Term Treasury ETF) are both exchange-traded funds - VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index, while VGLT is a Government Bonds fund tracking the Bloomberg U.S. Long Treasury Index. Both are passively managed. Over the past 10 years, VWO returned 9.00%/yr vs -1.21%/yr for VGLT. At a correlation of -0.19, they often move in opposite directions. VWO charges 0.08%/yr vs 0.03%/yr for VGLT.
Performance
VWO vs. VGLT - Performance Comparison
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Returns By Period
In the year-to-date period, VWO achieves a 10.77% return, which is significantly higher than VGLT's 0.03% return. Over the past 10 years, VWO has outperformed VGLT with an annualized return of 9.00%, while VGLT has yielded a comparatively lower -1.21% 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%
VGLT
- 1D
- -0.27%
- 1M
- 1.30%
- YTD
- 0.03%
- 6M
- 0.49%
- 1Y
- 3.29%
- 3Y*
- -0.30%
- 5Y*
- -5.52%
- 10Y*
- -1.21%
VWO vs. VGLT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
VGLT Vanguard Long-Term Treasury ETF | 0.03% | 5.35% | -6.28% | 3.27% | -29.34% | -4.98% | 17.57% | 14.30% | -1.54% | 8.64% |
Correlation
The correlation between VWO and VGLT is 0.26, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.26 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.17 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.06 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.05 |
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009 | -0.19 |
The correlation between VWO and VGLT shifts across timeframes, from -0.19 (all time) to 0.26 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VWO vs. VGLT — Risk / Return Rank
VWO
VGLT
VWO vs. VGLT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets ETF (VWO) and Vanguard Long-Term Treasury ETF (VGLT). 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.
| VWO | VGLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.12 | ||
| Sortino ratioReturn per unit of downside risk | +1.49 | ||
| Omega ratioGain probability vs. loss probability | 1.28 | 1.07 | +0.21 |
| Calmar ratioReturn relative to maximum drawdown | 2.21 | 0.47 | +1.74 |
| Martin ratioReturn relative to average drawdown | 7.80 | 1.19 | +6.61 |
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Drawdowns
VWO vs. VGLT - Drawdown Comparison
The maximum VWO drawdown since its inception was -67.68%, which is greater than VGLT's maximum drawdown of -46.18%. Use the drawdown chart below to compare losses from any high point for VWO and VGLT.
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Drawdown Indicators
| VWO | VGLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -67.68% | -46.18% | -21.50% |
Max Drawdown (1Y)Largest decline over 1 year | -11.17% | -7.01% | -4.16% |
Max Drawdown (3Y)Largest decline over 3 years | -17.37% | -17.68% | +0.31% |
Max Drawdown (5Y)Largest decline over 5 years | -32.60% | -40.98% | +8.38% |
Max Drawdown (10Y)Largest decline over 10 years | -36.39% | -46.18% | +9.79% |
Current DrawdownCurrent decline from peak | -2.68% | -36.55% | +33.87% |
Average DrawdownAverage peak-to-trough decline | -15.80% | -15.09% | -0.71% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.17% | 2.78% | +0.39% |
Volatility
VWO vs. VGLT - Volatility Comparison
Vanguard FTSE Emerging Markets ETF (VWO) has a higher volatility of 6.64% compared to Vanguard Long-Term Treasury ETF (VGLT) at 2.69%. This indicates that VWO's price experiences larger fluctuations and is considered to be riskier than VGLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VWO | VGLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.64% | 2.69% | +3.95% |
Volatility (6M)Calculated over the trailing 6-month period | 14.04% | 6.09% | +7.95% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.54% | 8.78% | +7.76% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.48% | 14.57% | +2.91% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 19.22% | 13.82% | +5.40% |
VWO vs. VGLT - Expense Ratio Comparison
VWO has a 0.08% expense ratio, which is higher than VGLT's 0.03% 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%.
Dividends
VWO vs. VGLT - Dividend Comparison
VWO's dividend yield for the trailing twelve months is around 2.44%, less than VGLT's 4.59% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VGLT Vanguard Long-Term Treasury ETF | 4.59% | 4.44% | 4.33% | 3.33% | 2.84% | 1.82% | 2.15% | 2.46% | 2.71% | 2.55% | 2.69% | 3.21% |
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 VGLT have a correlation of 0.26, 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 VGLT (2.69%). In terms of maximum drawdown, VWO dropped -67.68% vs VGLT's -46.18%.
On 10-year performance, VWO leads with 9.00% vs -1.21% for VGLT. On fees, VGLT is cheaper at 0.03% per year. On volatility, VGLT has been the lower-risk option at 2.69%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VWO has performed better with a 9.00% return vs -1.21%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGLT is cheaper with a 0.03% expense ratio, compared with 0.08% for VWO.
VGLT has the higher dividend yield at 4.59%, compared with 2.44% for VWO.
VWO is categorized as Emerging Markets Equities, while VGLT is Government Bonds. VWO tracks FTSE Emerging Index, while VGLT tracks Bloomberg U.S. Long Treasury Index. Their fees differ too: 0.08% for VWO and 0.03% for VGLT.
VWO currently has the higher Sharpe Ratio (1.49 vs 0.38), 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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