XSOE vs. VWO

Last updated Jun 3, 2026

XSOE (WisdomTree Emerging Markets ex-State-Owned Enterprises Fund) and VWO (Vanguard FTSE Emerging Markets ETF) are both Emerging Markets Equities funds - XSOE tracks the WisdomTree Emerging Markets ex-State-Owned Enterprises Index while VWO tracks the FTSE Emerging Index. Both are passively managed. Over the past 10 years, XSOE returned 10.91%/yr vs 9.01%/yr for VWO. Their correlation of 0.86 suggests significant overlap in exposure. XSOE charges 0.32%/yr vs 0.08%/yr for VWO.

Performance

XSOE vs. VWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Emerging Markets ex-State-Owned Enterprises Fund (XSOE) and Vanguard FTSE Emerging Markets ETF (VWO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XSOE achieves a 29.68% return, which is significantly higher than VWO's 13.82% return. Over the past 10 years, XSOE has outperformed VWO with an annualized return of 10.91%, while VWO has yielded a comparatively lower 9.01% annualized return.

XSOE

• 1D: 1.06%
• 1M: 11.05%
• YTD: 29.68%
• 6M: 32.39%
• 1Y: 56.82%
• 3Y*: 23.90%
• 5Y*: 5.56%
• 10Y*: 10.91%

VWO

• 1D: 1.27%
• 1M: 3.73%
• YTD: 13.82%
• 6M: 15.26%
• 1Y: 32.89%
• 3Y*: 18.58%
• 5Y*: 5.66%
• 10Y*: 9.01%

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

XSOE vs. VWO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XSOE WisdomTree Emerging Markets ex-State-Owned Enterprises Fund	29.68%	30.05%	7.02%	10.28%	-25.83%	-5.92%	28.61%	24.81%	-18.60%	49.23%
VWO Vanguard FTSE Emerging Markets ETF	13.82%	25.60%	10.59%	9.25%	-17.98%	1.26%	15.17%	20.75%	-14.76%	31.49%

Correlation

The correlation between XSOE and VWO is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (10Y) Calculated over the trailing 10-year period	0.91
Correlation (All Time) Calculated using the full available price history since Dec 11, 2014	0.86

The correlation between XSOE and VWO shifts across timeframes, from 0.86 (all time) to 0.97 (5 years), reflecting how their relationship changes across market environments.

XSOE vs. VWO - Sectors Allocation Comparison

Sectors	XSOE	VWO
Technology	37.3%	29.6%
Financial Services	15.5%	19.5%
Consumer Cyclical	12.6%	10.7%
Industrials	9.6%	8.0%
Communication Services	7.0%	7.1%
Basic Materials	5.3%	8.0%
Healthcare	4.4%	3.9%
Consumer Defensive	3.8%	3.7%
Energy	2.0%	4.6%
Utilities	1.4%	2.9%
Real Estate	1.0%	2.2%

Return for Risk

XSOE vs. VWO — Risk / Return Rank

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

XSOE

XSOE Risk / Return Rank: 84
XSOE Sharpe Ratio Rank: 86
XSOE Sortino Ratio Rank: 83
XSOE Omega Ratio Rank: 86
XSOE Calmar Ratio Rank: 82
XSOE Martin Ratio Rank: 82

VWO

VWO Risk / Return Rank: 61
VWO Sharpe Ratio Rank: 62
VWO Sortino Ratio Rank: 61
VWO Omega Ratio Rank: 63
VWO Calmar Ratio Rank: 60
VWO Martin Ratio Rank: 61

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.

XSOE vs. VWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Emerging Markets ex-State-Owned Enterprises Fund (XSOE) 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.

	XSOE	VWO	Difference
Sharpe ratio Return per unit of total volatility	2.90	2.09	+0.81
Sortino ratio Return per unit of downside risk	3.77	2.88	+0.90
Omega ratio Gain probability vs. loss probability	1.53	1.39	+0.15
Calmar ratio Return relative to maximum drawdown	4.37	3.03	+1.34
Martin ratio Return relative to average drawdown	16.75	10.94	+5.81
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XSOE vs. VWO - Sharpe Ratio Comparison

The current XSOE Sharpe Ratio is 2.90, which is higher than the VWO Sharpe Ratio of 2.09. The chart below compares the historical Sharpe Ratios of XSOE and VWO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	XSOE	VWO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.90	2.09	+0.81
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.29	0.33	-0.04
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.53	0.47	+0.06
Sharpe Ratio (All Time) Calculated using the full available price history	0.41	0.27	+0.14

Drawdowns

XSOE vs. VWO - Drawdown Comparison

The maximum XSOE drawdown since its inception was -45.23%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for XSOE and VWO.

Drawdown Indicators

	XSOE	VWO	Difference
Max Drawdown Largest peak-to-trough decline	-45.23%	-67.68%	+22.45%
Max Drawdown (1Y) Largest decline over 1 year	-13.31%	-11.17%	-2.14%
Max Drawdown (3Y) Largest decline over 3 years	-19.96%	-17.37%	-2.59%
Max Drawdown (5Y) Largest decline over 5 years	-42.05%	-32.64%	-9.41%
Max Drawdown (10Y) Largest decline over 10 years	-45.23%	-36.39%	-8.84%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-17.29%	-15.82%	-1.47%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.47%	3.09%	+0.38%

Volatility

XSOE vs. VWO - Volatility Comparison

WisdomTree Emerging Markets ex-State-Owned Enterprises Fund (XSOE) has a higher volatility of 8.40% compared to Vanguard FTSE Emerging Markets ETF (VWO) at 5.41%. This indicates that XSOE's price experiences larger fluctuations and is considered to be riskier than VWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XSOE	VWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.40%	5.41%	+2.99%
Volatility (6M) Calculated over the trailing 6-month period	17.18%	13.13%	+4.05%
Volatility (1Y) Calculated over the trailing 1-year period	19.72%	15.83%	+3.89%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.43%	17.36%	+2.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.59%	19.20%	+1.39%

XSOE vs. VWO - Expense Ratio Comparison

XSOE has a 0.32% expense ratio, which is higher than VWO's 0.08% expense ratio.

Dividends

XSOE vs. VWO - Dividend Comparison

XSOE's dividend yield for the trailing twelve months is around 1.26%, less than VWO's 2.37% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VWO Vanguard FTSE Emerging Markets ETF	2.37%	2.79%	3.20%	3.52%	4.11%	2.63%	1.91%	3.23%	2.88%	2.30%	2.52%	3.26%
XSOE WisdomTree Emerging Markets ex-State-Owned Enterprises Fund	1.26%	1.50%	1.44%	1.78%	2.53%	1.36%	1.02%	2.01%	1.56%	0.65%	1.43%	3.93%

Frequently Asked Questions

Can I hold both XSOE and VWO in my portfolio?

With a correlation of 0.96, XSOE and VWO move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, XSOE or VWO?

XSOE has higher volatility (8.40%) compared to VWO (5.41%). In terms of maximum drawdown, XSOE dropped -45.23% vs VWO's -67.68%.

Which ETF is better, XSOE or VWO?

On 10-year performance, XSOE leads with 10.91% vs 9.01% for VWO. On fees, VWO is cheaper at 0.08% per year. On volatility, VWO has been the lower-risk option at 5.41%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XSOE or VWO?

Over the 10-year period, XSOE has performed better with a 10.91% return vs 9.01%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XSOE or VWO?

VWO is cheaper with a 0.08% expense ratio, compared with 0.32% for XSOE.

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

VWO has the higher dividend yield at 2.37%, compared with 1.26% for XSOE.

What is the main difference between XSOE and VWO?

XSOE tracks WisdomTree Emerging Markets ex-State-Owned Enterprises Index, while VWO tracks FTSE Emerging Index. They also come from different issuers: WisdomTree and Vanguard. Their fees differ too: 0.32% for XSOE and 0.08% for VWO.

Which has better risk-adjusted returns?

XSOE currently has the higher Sharpe Ratio (2.90 vs 2.09), 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.