VWO vs. VV

Last updated Aug 2, 2026

VWO (Vanguard FTSE Emerging Markets ETF) and VV (Vanguard Large-Cap ETF) are both exchange-traded funds - VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index, while VV is a Large Cap Blend Equities fund tracking the CRSP US Large Cap Index. Both are passively managed. Over the past 10 years, VWO returned 7.86%/yr vs 15.14%/yr for VV. Their 0.74 correlation means they have sometimes moved together and sometimes differently. VWO charges 0.08%/yr vs 0.04%/yr for VV.

Performance

VWO vs. VV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Emerging Markets ETF (VWO) and Vanguard Large-Cap ETF (VV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with VWO having a 9.41% return and VV slightly higher at 9.78%. Over the past 10 years, VWO has underperformed VV with an annualized return of 7.86%, while VV has yielded a comparatively higher 15.14% annualized return.

VWO

• 1D: 0.96%
• 1M: -0.49%
• 6M: 4.16%
• YTD: 9.41%
• 1Y: 21.69%
• 3Y*: 14.84%
• 5Y*: 6.08%
• 10Y*: 7.86%
• ALL TIME*: 6.81%

VV

• 1D: 0.68%
• 1M: 0.19%
• 6M: 8.54%
• YTD: 9.78%
• 1Y: 20.98%
• 3Y*: 19.53%
• 5Y*: 12.36%
• 10Y*: 15.14%
• ALL TIME*: 10.97%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
VV Vanguard Large-Cap ETF	$85.99M	$75.21M	$96.89M
VWO Vanguard FTSE Emerging Markets ETF	$386.61M	$469.40M	$499.89M

VWO vs. VV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VWO Vanguard FTSE Emerging Markets ETF	9.41%	25.60%	10.59%	9.25%	-17.98%	1.26%	15.17%	20.75%	-14.76%	31.49%
VV Vanguard Large-Cap ETF	9.78%	18.11%	25.25%	27.18%	-19.91%	27.41%	21.04%	31.25%	-4.46%	22.00%

Correlation

The correlation between VWO and VV is 0.77, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.77
Correlation (3Y) Balances recent behavior with more history.	0.66
Correlation (5Y) Shows whether the relationship held over a longer period.	0.65
Correlation (10Y) Provides a long-term view across more market conditions.	0.67
Correlation (All Time) Calculated using the full available price history since Mar 10, 2005	0.74

The correlation between VWO and VV shifts across timeframes, from 0.65 (5 years) to 0.77 (1 year), reflecting how their relationship changes across market environments.

VWO vs. VV - Sectors Allocation Comparison

Sectors	VWO	VV
Technology	34.2%	39.1%
Financial Services	19.4%	11.5%
Consumer Cyclical	9.1%	9.0%
Industrials	7.9%	8.2%
Basic Materials	7.2%	1.7%
Communication Services	6.6%	9.7%
Energy	3.8%	3.0%
Healthcare	3.7%	8.9%
Consumer Defensive	3.3%	4.4%
Utilities	2.8%	2.5%
Real Estate	2.0%	1.6%

Return for Risk

VWO vs. VV — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VWO

VWO Risk / Return Rank: 51
VWO Sharpe Ratio Rank: 49
VWO Sortino Ratio Rank: 48
VWO Omega Ratio Rank: 49
VWO Calmar Ratio Rank: 54
VWO Martin Ratio Rank: 53

VV

VV Risk / Return Rank: 63
VV Sharpe Ratio Rank: 64
VV Sortino Ratio Rank: 61
VV Omega Ratio Rank: 62
VV Calmar Ratio Rank: 59
VV Martin Ratio Rank: 71

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VWO vs. VV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets ETF (VWO) and Vanguard Large-Cap ETF (VV). 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	VV	Difference
Sharpe ratio: Return per unit of total volatility	1.20	1.47	-0.26
Sortino ratio: Return per unit of downside risk	1.72	2.05	-0.33
Omega ratio: Gain probability vs. loss probability	1.22	1.26	-0.04
Calmar ratio: Return relative to maximum drawdown	1.89	2.07	-0.18
Martin ratio: Return relative to average drawdown	6.16	8.71	-2.55

VWO vs. VV - Sharpe Ratio Comparison

The current VWO Sharpe Ratio is 1.20, which is comparable to the VV Sharpe Ratio of 1.47. The chart below compares the historical Sharpe Ratios of VWO and VV, 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. VV - Drawdown Comparison

The maximum VWO drawdown since its inception was -67.68%, which is greater than VV's maximum drawdown of -54.81%. Use the drawdown chart below to compare losses from any high point for VWO and VV.

Drawdown Indicators

	VWO	VV	Difference
Max Drawdown Largest peak-to-trough decline	-67.68%	-54.81%	-12.87%
Max Drawdown (1Y) Largest decline over 1 year	-11.17%	-9.21%	-1.96%
Max Drawdown (3Y) Largest decline over 3 years	-17.37%	-18.97%	+1.60%
Max Drawdown (5Y) Largest decline over 5 years	-30.88%	-25.66%	-5.22%
Max Drawdown (10Y) Largest decline over 10 years	-36.39%	-34.28%	-2.11%
Current Drawdown Current decline from peak	-4.07%	-1.53%	-2.54%
Average Drawdown Average peak-to-trough decline	-15.73%	-6.80%	-8.93%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.43%	2.18%	+1.25%

Volatility

VWO vs. VV - Volatility Comparison

Vanguard FTSE Emerging Markets ETF (VWO) has a higher volatility of 5.58% compared to Vanguard Large-Cap ETF (VV) at 3.64%. This indicates that VWO's price experiences larger fluctuations and is considered to be riskier than VV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VWO	VV	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.58%	3.64%	+1.94%
Volatility (6M) Calculated over the trailing 6-month period	15.22%	10.18%	+5.04%
Volatility (1Y) Calculated over the trailing 1-year period	17.58%	13.01%	+4.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.56%	17.35%	+0.21%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.17%	18.21%	+0.96%

VWO vs. VV - Expense Ratio Comparison

VWO has a 0.08% expense ratio, which is higher than VV's 0.04% 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. VV - Dividend Comparison

VWO's dividend yield for the trailing twelve months is around 2.35%, more than VV's 1.02% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VV Vanguard Large-Cap ETF	1.02%	1.08%	1.24%	1.41%	1.66%	1.19%	1.46%	1.81%	2.09%	1.75%	1.98%	1.96%
VWO Vanguard FTSE Emerging Markets ETF	2.35%	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 VV in my portfolio?

VWO and VV have a correlation of 0.77, 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 VV?

VWO has higher volatility (5.58%) compared to VV (3.64%). In terms of maximum drawdown, VWO dropped -67.68% vs VV's -54.81%.

Which ETF is better, VWO or VV?

On 10-year performance, VV leads with 15.14% vs 7.86% for VWO. On fees, VV is cheaper at 0.04% per year. On volatility, VV has been the lower-risk option at 3.64%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VWO or VV?

Over the 10-year period, VV has performed better with a 15.14% return vs 7.86%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VWO or VV?

VV is cheaper with a 0.04% expense ratio, compared with 0.08% for VWO.

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

VWO has the higher dividend yield at 2.35%, compared with 1.02% for VV.

What is the main difference between VWO and VV?

VWO is categorized as Emerging Markets Equities, while VV is Large Cap Blend Equities. VWO tracks FTSE Emerging Index, while VV tracks CRSP US Large Cap Index. Their fees differ too: 0.08% for VWO and 0.04% for VV.

Which has better risk-adjusted returns?

VV currently has the higher Sharpe Ratio (1.47 vs 1.20), 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.