VXUS vs. VWO
Compare and contrast key facts about Vanguard Total International Stock ETF (VXUS) and Vanguard FTSE Emerging Markets ETF (VWO).
VXUS and VWO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VXUS is a passively managed fund by Vanguard that tracks the performance of the MSCI All Country World ex USA Investable Market Index. It was launched on Jan 26, 2011. VWO is a passively managed fund by Vanguard that tracks the performance of the FTSE Emerging Index. It was launched on Mar 4, 2005. Both VXUS and VWO 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: VXUS or VWO.
Key characteristics
| VXUS | VWO | |
|---|---|---|
| YTD Return | 5.91% | 10.63% |
| 1Y Return | 13.39% | 15.46% |
| 3Y Return (Ann) | 0.36% | -1.59% |
| 5Y Return (Ann) | 5.25% | 4.26% |
| 10Y Return (Ann) | 4.79% | 3.58% |
| Sharpe Ratio | 1.01 | 0.96 |
| Sortino Ratio | 1.47 | 1.44 |
| Omega Ratio | 1.18 | 1.18 |
| Calmar Ratio | 1.07 | 0.61 |
| Martin Ratio | 5.43 | 5.01 |
| Ulcer Index | 2.38% | 2.85% |
| Daily Std Dev | 12.73% | 14.79% |
| Max Drawdown | -35.97% | -67.68% |
| Current Drawdown | -7.59% | -10.94% |
Correlation
The correlation between VXUS and VWO 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
VXUS vs. VWO - Performance Comparison
In the year-to-date period, VXUS achieves a 5.91% return, which is significantly lower than VWO's 10.63% return. Over the past 10 years, VXUS has outperformed VWO with an annualized return of 4.79%, while VWO has yielded a comparatively lower 3.58% 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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VXUS vs. VWO - Expense Ratio Comparison
VXUS has a 0.07% expense ratio, which is lower than VWO's 0.08% 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%.
Risk-Adjusted Performance
VXUS vs. VWO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total International Stock ETF (VXUS) and Vanguard FTSE Emerging Markets ETF (VWO). 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
VXUS vs. VWO - Dividend Comparison
VXUS's dividend yield for the trailing twelve months is around 3.02%, more than VWO's 2.68% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VXUS Vanguard Total International Stock ETF | 3.02% | 3.25% | 3.09% | 3.10% | 2.14% | 3.06% | 3.17% | 2.73% | 2.93% | 2.83% | 3.40% | 2.70% |
VWO Vanguard FTSE Emerging Markets ETF | 2.68% | 3.52% | 4.11% | 2.63% | 1.91% | 3.24% | 2.88% | 2.30% | 2.52% | 3.26% | 2.86% | 2.73% |
Drawdowns
VXUS vs. VWO - Drawdown Comparison
The maximum VXUS drawdown since its inception was -35.97%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for VXUS and VWO. For additional features, visit the drawdowns tool.
Volatility
VXUS vs. VWO - Volatility Comparison
The current volatility for Vanguard Total International Stock ETF (VXUS) is 3.90%, while Vanguard FTSE Emerging Markets ETF (VWO) has a volatility of 4.61%. This indicates that VXUS experiences smaller price fluctuations and is considered to be less risky than VWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.