VWO vs. VNQI

Last updated Jun 13, 2026

VWO (Vanguard FTSE Emerging Markets ETF) and VNQI (Vanguard Global ex-U.S. Real Estate ETF) are both exchange-traded funds - VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index, while VNQI is a REIT fund tracking the S&P Global ex-U.S. Property Index. Both are passively managed. Over the past 10 years, VWO returned 9.00%/yr vs 2.74%/yr for VNQI. A 0.77 correlation means they provide meaningful diversification when combined. VWO charges 0.08%/yr vs 0.12%/yr for VNQI.

Performance

VWO vs. VNQI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Emerging Markets ETF (VWO) and Vanguard Global ex-U.S. Real Estate ETF (VNQI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VWO achieves a 10.77% return, which is significantly higher than VNQI's -0.33% return. Over the past 10 years, VWO has outperformed VNQI with an annualized return of 9.00%, while VNQI has yielded a comparatively lower 2.74% 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%

VNQI

• 1D: 0.68%
• 1M: -3.12%
• YTD: -0.33%
• 6M: 0.85%
• 1Y: 5.87%
• 3Y*: 8.59%
• 5Y*: -1.50%
• 10Y*: 2.74%

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

VWO vs. VNQI - 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%
VNQI Vanguard Global ex-U.S. Real Estate ETF	-0.33%	21.38%	-2.22%	6.99%	-22.94%	5.93%	-7.22%	21.59%	-9.44%	26.91%

Correlation

The correlation between VWO and VNQI is 0.62, 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	0.62
Correlation (3Y) Calculated over the trailing 3-year period	0.68
Correlation (5Y) Calculated over the trailing 5-year period	0.70
Correlation (10Y) Calculated over the trailing 10-year period	0.72
Correlation (All Time) Calculated using the full available price history since Nov 1, 2010	0.77

The correlation between VWO and VNQI shifts across timeframes, from 0.62 (1 year) to 0.77 (all time), reflecting how their relationship changes across market environments.

VWO vs. VNQI - Sectors Allocation Comparison

Sectors	VWO	VNQI
Technology	29.6%	0.2%
Financial Services	19.5%	1.9%
Consumer Cyclical	10.7%	1.1%
Industrials	8.0%	0.7%
Basic Materials	8.0%	0.3%
Communication Services	7.1%	-
Energy	4.6%	0.3%
Healthcare	3.9%	0.0%
Consumer Defensive	3.7%	0.1%
Utilities	2.9%	0.1%
Real Estate	2.2%	91.2%

Return for Risk

VWO vs. VNQI — Risk / Return Rank

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

VWO

VWO Risk / Return Rank: 50
VWO Sharpe Ratio Rank: 49
VWO Sortino Ratio Rank: 47
VWO Omega Ratio Rank: 51
VWO Calmar Ratio Rank: 50
VWO Martin Ratio Rank: 52

VNQI

VNQI Risk / Return Rank: 16
VNQI Sharpe Ratio Rank: 17
VNQI Sortino Ratio Rank: 16
VNQI Omega Ratio Rank: 16
VNQI Calmar Ratio Rank: 15
VNQI Martin Ratio Rank: 15

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. VNQI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets ETF (VWO) and Vanguard Global ex-U.S. Real Estate ETF (VNQI). 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	VNQI	Difference
Sharpe ratio: Return per unit of total volatility	1.49	0.43	+1.07
Sortino ratio: Return per unit of downside risk	2.10	0.70	+1.40
Omega ratio: Gain probability vs. loss probability	1.28	1.09	+0.19
Calmar ratio: Return relative to maximum drawdown	2.21	0.40	+1.82
Martin ratio: Return relative to average drawdown	7.80	1.13	+6.67

VWO vs. VNQI - Sharpe Ratio Comparison

The current VWO Sharpe Ratio is 1.49, which is higher than the VNQI Sharpe Ratio of 0.43. The chart below compares the historical Sharpe Ratios of VWO and VNQI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VWO vs. VNQI - Drawdown Comparison

The maximum VWO drawdown since its inception was -67.68%, which is greater than VNQI's maximum drawdown of -38.35%. Use the drawdown chart below to compare losses from any high point for VWO and VNQI.

Drawdown Indicators

	VWO	VNQI	Difference
Max Drawdown Largest peak-to-trough decline	-67.68%	-38.35%	-29.33%
Max Drawdown (1Y) Largest decline over 1 year	-11.17%	-14.78%	+3.61%
Max Drawdown (3Y) Largest decline over 3 years	-17.37%	-16.35%	-1.02%
Max Drawdown (5Y) Largest decline over 5 years	-32.60%	-35.55%	+2.95%
Max Drawdown (10Y) Largest decline over 10 years	-36.39%	-38.35%	+1.96%
Current Drawdown Current decline from peak	-2.68%	-9.99%	+7.31%
Average Drawdown Average peak-to-trough decline	-15.80%	-10.89%	-4.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.17%	5.19%	-2.02%

Volatility

VWO vs. VNQI - Volatility Comparison

Vanguard FTSE Emerging Markets ETF (VWO) has a higher volatility of 6.64% compared to Vanguard Global ex-U.S. Real Estate ETF (VNQI) at 4.62%. This indicates that VWO's price experiences larger fluctuations and is considered to be riskier than VNQI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VWO	VNQI	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.64%	4.62%	+2.02%
Volatility (6M) Calculated over the trailing 6-month period	14.04%	11.75%	+2.29%
Volatility (1Y) Calculated over the trailing 1-year period	16.54%	13.73%	+2.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.48%	15.54%	+1.94%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.22%	16.07%	+3.15%

VWO vs. VNQI - Expense Ratio Comparison

VWO has a 0.08% expense ratio, which is lower than VNQI's 0.12% 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. VNQI - Dividend Comparison

VWO's dividend yield for the trailing twelve months is around 2.44%, less than VNQI's 4.72% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VNQI Vanguard Global ex-U.S. Real Estate ETF	4.72%	4.70%	5.16%	3.74%	0.57%	6.48%	0.93%	7.58%	4.62%	3.86%	5.18%	2.86%
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

Can I hold both VWO and VNQI in my portfolio?

VWO and VNQI have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VWO or VNQI?

VWO has higher volatility (6.64%) compared to VNQI (4.62%). In terms of maximum drawdown, VWO dropped -67.68% vs VNQI's -38.35%.

Which ETF is better, VWO or VNQI?

On 10-year performance, VWO leads with 9.00% vs 2.74% for VNQI. On fees, VWO is cheaper at 0.08% per year. On volatility, VNQI has been the lower-risk option at 4.62%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VWO or VNQI?

Over the 10-year period, VWO has performed better with a 9.00% return vs 2.74%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VWO or VNQI?

VWO is cheaper with a 0.08% expense ratio, compared with 0.12% for VNQI.

Which ETF pays a higher dividend yield, VWO or VNQI?

VNQI has the higher dividend yield at 4.72%, compared with 2.44% for VWO.

What is the main difference between VWO and VNQI?

VWO is categorized as Emerging Markets Equities, while VNQI is REIT. VWO tracks FTSE Emerging Index, while VNQI tracks S&P Global ex-U.S. Property Index. Their fees differ too: 0.08% for VWO and 0.12% for VNQI.

Which has better risk-adjusted returns?

VWO currently has the higher Sharpe Ratio (1.49 vs 0.43), 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.