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25 important things you should know about Vanguard VWO ETF

Updated: December 27, 2020
80
Bull Case
  • 3-year return above the benchmark
  • 5-year return above the benchmark
  • 15-year return above the benchmark
  • Low expense ratio
Bear Case
  • 10-year return below the benchmark

Before we start: if you’re looking for VWO “stock” price, you can quickly find it out by visiting Finny and typing "VWO quote". If you’re looking for a quick scoop on VWO "stock" (price chart, key stats, buy or sell analysis and holdings), go to Finny and look for "VWO". You’ll get all this info in one place.

Are you looking to buy or sell VWO? Or perhaps you’re looking for VWO fact sheet, and learn about its alternatives? If so, you came to the right place.

In this VWO ETF review, we’ll address key questions our readers have been asking us about this fund, above and beyond what you can find in its prospectus, and on Morningstar or Yahoo Finance.

Here is what you’ll be able to find in this review:

  • Fact Sheet: VWO performance, returns, expense ratio, holdings and dividend yield;
  • Analysis: VWO buy or sell; the pros and cons of investing in VWO ETF;
  • Alternatives: other ETFs and mutual funds you should consider as alternatives to VWO.

And here is the list of questions we’ll answer:

  1. Describe Vanguard FTSE Emerging Markets ETF (VWO).
  2. What is VWO underlying index?
  3. What are VWO holdings?
  4. What is VWO performance? What are VWO historical returns?
  5. How many up and down years did VWO have historically?
  6. What is VWO dividend yield?
  7. What is VWO expense ratio?
  8. What is VWO tax efficiency (tax-cost ratio)?
  9. What is VWO beta? How would you assess VWO risk?
  10. What is VWO Sharpe ratio?
  11. What is VWO Finny Score? VWO buy or sell?
  12. What are the pros of investing in VWO? What are VWO buy reasons?
  13. What are the cons of investing in VWO? What are VWO sell reasons?
  14. Compare and contrast: VWO vs EEM.
  15. Compare and contrast: VWO vs VXUS.
  16. Compare and contrast: VWO vs IEMG.
  17. Compare and contrast: VWO vs SCHE.
  18. Compare and contrast: VWO vs VEA.
  19. Compare and contrast: VWO vs VOO.
  20. Compare and contrast: VWO vs VEMAX.
  21. Compare and contrast: VWO vs SPEM.
  22. Compare and contrast: VWO vs SPY.
  23. Compare and contrast: VWO vs VEU.
  24. Compare and contrast: VWO vs VTI.

So let’s start. Scroll down to the question that interests you the most.

Fact Sheet

1. Describe Vanguard FTSE Emerging Markets ETF (VWO).

The Fund seeks to track the performance of a benchmark index that measures the investment return of stocks issued by companies located in emerging market countries. The Fund employs an indexing investment approach designed to track the FTSE Emerging Markets All Cap China A Inclusion Index by sampling the Index.

2. What is VWO underlying index?

FTSE Emerging Markets All Cap China A Inclusion Index Net TR US RIC.

3. What are VWO top holdings?

VWO has 4,094 stock holdings and 3 bond holdings.

The top 10 holdings represent 27.97% of total assets. Here are the top holdings:

Name Symbol % Assets
Alibaba Group Holding Ltd ADR BABA 8.15%
Tencent Holdings Ltd 00700 6.66%
Taiwan Semiconductor Manufacturing Co Ltd 2330.TW 3.74%
Meituan 03690 2.03%
Taiwan Semiconductor Manufacturing Co Ltd ADR TSM.TW 1.97%
Reliance Industries Ltd RELIANCE.B 1.31%
Naspers Ltd Class N NPN.JO 1.25%
JD.com Inc ADR JD 1.06%
China Construction Bank Corp Class H 00939 0.96%
Ping An Insurance (Group) Co. of China Ltd Class H 02318 0.84%

4. What is VWO performance? What are VWO historical returns?

VWO has generated the following returns:

  • 1-month return is 5.44%;
  • 3-month return is 14.51%;
  • 1-year return is 15.34%;
  • 3-year return is 6.53%;
  • 5-year return is 11.82%;
  • 10-year return is 3.39%;
  • 15-year return is 6.18%.

5. How many up and down years did VWO have historically?

In the last 10 years, VWO had 5 up years and 5 down years.

VWO up and down years

6. What is VWO dividend yield?

VWO yield is 2.55%.

7. What is VWO expense ratio?

VWO expense ratio is 0.1%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

VWO expenses

8. What is VWO tax efficiency (tax-cost ratio)?

  • 1-year ax cost ratio is 0.94%;
  • 3-year ax cost ratio is 0.9%.
VWO tax costs

9. What is VWO beta? How would you assess VWO risk?

  • 3-year beta is 1.09;
  • 5-year beta is 1.08;
  • 10-year beta is 1.08;
  • 15-year beta is 1.16.
VWO Beta

10. What is VWO Sharpe ratio?

  • 3-year Sharpe ratio is 0.14;
  • 5-year Sharpe ratio is 0.44;
  • 10-year Sharpe ratio is 0.18;
  • 15-year Sharpe ratio is 0.33.
VWO Sharpe ratio

Analysis

11. What is Finny Score? buy or sell?

Finny Score is 80. Our quantitative analysis shows 4 reasons to buy and 1 reason to sell it, resulting in the Finny Score of 80.

12. What are the pros of investing in VWO? What are VWO buy reasons?

The following are VWO strengths from our perspective:

  • VWO 3-year return is 6.53%, which is higher than the 3-year return of the benchmark index (MSCI ACWI Ex USA NR USD), 4.97%.
  • VWO 5-year return is 11.82%, which is higher than the 5-year return of the benchmark index (MSCI ACWI Ex USA NR USD), 9.01%.
  • VWO 15-year return is 6.18%, which is higher than the 15-year return of the benchmark index (MSCI ACWI Ex USA NR USD), 4.83%.
  • VWO expense ratio is 0.1%, which is considered low. Nice job picking a low-cost fund.

13. What are the cons of investing in VWO? What are VWO negatives?

The following are VWO weaknesses from our perspective:

  • VWO 10-year return is 3.39%, which is lower than the 10-year return of the benchmark index (MSCI ACWI Ex USA NR USD), 5.08%.

Alternatives

14. Compare and contrast: VWO vs EEM.

Both VWO and EEM are ETFs. VWO has a lower 5-year return than EEM (11.82% vs 11.99%). VWO has a lower expense ratio than EEM (0.1% vs 0.68%). Below is the comparison between VWO and EEM.

VWO EEM
Segment Equity: Emerging Markets - Total Market Equity: Emerging Markets - Total Market
Net Assets $66.50B $26.37B
Expense Ratio 0.1% 0.68%
Management Style passive (index-based) passive (index-based)
Underlying Index FTSE Emerging Markets All Cap China A Inclusion Index Net TR US RIC MSCI Emerging Markets Index
YTD Return 14.31% 15.49%
1-Year Return 15.34% 16.45%
3-Year Return 6.53% 5.81%
5-Year Return 11.82% 11.99%
10-Year Return 3.39% 3.17%
Dividend Yield 2.55% 2.59%

EEM profile: The Fund seeks to track the investment results of an index composed of large- and mid-capitalization emerging market equities. The Fund invests, under normal circumstances, at least 90% of its assets in the securities of its Underlying Index and in depositary receipts representing securities in its Underlying Index.

For further information, check out VWO vs EEM comparison details.

15. Compare and contrast: VWO vs VXUS.

Both VWO and VXUS are ETFs. VWO has a higher 5-year return than VXUS (11.82% vs 9.2%). VWO has a higher expense ratio than VXUS (0.1% vs 0.08%). Below is the comparison between VWO and VXUS.

VWO VXUS
Segment Equity: Emerging Markets - Total Market Equity: Global Ex-U.S. - Total Market
Net Assets $66.50B $34.62B
Expense Ratio 0.1% 0.08%
Management Style passive (index-based) passive (index-based)
Underlying Index FTSE Emerging Markets All Cap China A Inclusion Index Net TR US RIC FTSE Global All Cap ex US Net US RIC
YTD Return 14.31% 9.81%
1-Year Return 15.34% 10.58%
3-Year Return 6.53% 4.96%
5-Year Return 11.82% 9.2%
10-Year Return 3.39% 5.28%
Dividend Yield 2.55% 2.3%

VXUS profile: The Fund seeks to track the performance of a benchmark index that measures the investment return of stocks issued by companies located in developed and emerging markets, excluding the United States. The Fund employs an indexing investment approach designed to track the performance of the FTSE Global All Cap ex US Index.

For further information, check out VWO vs VXUS comparison details.

16. Compare and contrast: VWO vs IEMG.

Both VWO and IEMG are ETFs. VWO has a lower 5-year return than IEMG (11.82% vs 12.13%). VWO has a lower expense ratio than IEMG (0.1% vs 0.11%). Below is the comparison between VWO and IEMG.

VWO IEMG
Segment Equity: Emerging Markets - Total Market Equity: Emerging Markets - Total Market
Net Assets $66.50B $61.34B
Expense Ratio 0.1% 0.11%
Management Style passive (index-based) passive (index-based)
Underlying Index FTSE Emerging Markets All Cap China A Inclusion Index Net TR US RIC MSCI Emerging Markets Investable Market Index
YTD Return 14.31% 16.17%
1-Year Return 15.34% 17.22%
3-Year Return 6.53% 6.12%
5-Year Return 11.82% 12.13%
10-Year Return 3.39% N/A
Dividend Yield 2.55% 2.8%

IEMG profile: The Fund seeks to track the investment results of an index composed if large-, mid- and small-capitalization emerging market equities. The Fund invests at least 90% of its assets in the component securities of the Underlying Index and in investments that have economic characteristics similar to such securities.

For further information, check out VWO vs IEMG comparison details.

17. Compare and contrast: VWO vs SCHE.

Both VWO and SCHE are ETFs. VWO has a lower 5-year return than SCHE (11.82% vs 12.2%). VWO has a lower expense ratio than SCHE (0.1% vs 0.11%). Below is the comparison between VWO and SCHE.

VWO SCHE
Segment Equity: Emerging Markets - Total Market Equity: Emerging Markets - Total Market
Net Assets $66.50B $7.95B
Expense Ratio 0.1% 0.11%
Management Style passive (index-based) passive (index-based)
Underlying Index FTSE Emerging Markets All Cap China A Inclusion Index Net TR US RIC FTSE Emerging Index
YTD Return 14.31% 13.72%
1-Year Return 15.34% 14.43%
3-Year Return 6.53% 6.68%
5-Year Return 11.82% 12.2%
10-Year Return 3.39% 3.45%
Dividend Yield 2.55% 2.86%

SCHE profile: The Fund seeks to track as closely as possible the total return of the FTSE All-Emerging Index. Under normal circumstances, the Fund will invest at least 90% of its net assets in stocks that are included in the underlying index.

For further information, check out VWO vs SCHE comparison details.

18. Compare and contrast: VWO vs VEA.

Both VWO and VEA are ETFs. VWO has a higher 5-year return than VEA (11.82% vs 8.44%). VWO has a higher expense ratio than VEA (0.1% vs 0.05%). Below is the comparison between VWO and VEA.

VWO VEA
Segment Equity: Emerging Markets - Total Market Equity: Developed Markets Ex-U.S. - Total Market
Net Assets $66.50B $83.26B
Expense Ratio 0.1% 0.05%
Management Style passive (index-based) passive (index-based)
Underlying Index FTSE Emerging Markets All Cap China A Inclusion Index Net TR US RIC FTSE Developed All Cap ex US Index Net TR US RIC
YTD Return 14.31% 8.79%
1-Year Return 15.34% 9.71%
3-Year Return 6.53% 4.65%
5-Year Return 11.82% 8.44%
10-Year Return 3.39% 5.97%
Dividend Yield 2.55% 2.19%

VEA profile: The Fund seeks to track the performance of a benchmark index that measures the investment return of stocks issued by companies located in the major markets of Europe and the Pacific Region. The Fund employs an indexing investment approach designed to track the performance of FTSE Developed All Cap ex US Index.

For further information, check out VWO vs VEA comparison details.

19. Compare and contrast: VWO vs VOO.

Both VWO and VOO are ETFs. VWO has a lower 5-year return than VOO (11.82% vs 15.33%). VWO has a higher expense ratio than VOO (0.1% vs 0.03%). Below is the comparison between VWO and VOO.

VWO VOO
Segment Equity: Emerging Markets - Total Market Equity: U.S. - Large Cap
Net Assets $66.50B $177.61B
Expense Ratio 0.1% 0.03%
Management Style passive (index-based) passive (index-based)
Underlying Index FTSE Emerging Markets All Cap China A Inclusion Index Net TR US RIC S&P 500
YTD Return 14.31% 16.76%
1-Year Return 15.34% 18.22%
3-Year Return 6.53% 13.39%
5-Year Return 11.82% 15.33%
10-Year Return 3.39% 13.81%
Dividend Yield 2.55% 1.61%

VOO profile: The Fund seeks to track the performance of its benchmark index, the S&P 500. The Fund employs an indexing investment approach. The Fund attempts to replicate the target index by investing all of its assets in the stocks that make up the Index with the same approximate weightings as the Index.

For further information, check out VWO vs VOO comparison details.

20. Compare and contrast: VWO vs VEMAX.

VWO is an ETF, whereas VEMAX is a mutual fund. VWO has a higher 5-year return than VEMAX (11.82% vs 11.29%). VWO has a lower expense ratio than VEMAX (0.1% vs 0.14%). Below is the comparison between VWO and VEMAX.

VWO VEMAX
Segment Equity: Emerging Markets - Total Market International Equity: Diversified Emerging Market
Net Assets $66.50B $15.88B
Expense Ratio 0.1% 0.14%
Management Style passive (index-based) passive (index-based)
Underlying Index FTSE Emerging Markets All Cap China A Inclusion Index Net TR US RIC N/A
YTD Return 14.31% 12.89%
1-Year Return 15.34% 13.88%
3-Year Return 6.53% 5.71%
5-Year Return 11.82% 11.29%
10-Year Return 3.39% 3.15%
Dividend Yield 2.55% 2.51%

VEMAX profile: The Fund seeks to track the performance of a benchmark index that measures the investment return of stocks issued by companies located in emerging market countries. The Fund employs an indexing investment approach designed to track the FTSE Emerging Markets All Cap China A Inclusion Index by sampling the Index.

For further information, check out VWO vs VEMAX comparison details.

21. Compare and contrast: VWO vs SPEM.

VWO is an ETF, whereas SPEM is a mutual fund. VWO has a lower 5-year return than SPEM (11.82% vs 11.9%). VWO has a lower expense ratio than SPEM (0.1% vs 0.11%). Below is the comparison between VWO and SPEM.

VWO SPEM
Segment Equity: Emerging Markets - Total Market
Net Assets $66.50B $4.93B
Expense Ratio 0.1% 0.11%
Management Style passive (index-based) N/A
Underlying Index FTSE Emerging Markets All Cap China A Inclusion Index Net TR US RIC N/A
YTD Return 14.31% 12.22%
1-Year Return 15.34% 13.07%
3-Year Return 6.53% 5.79%
5-Year Return 11.82% 11.9%
10-Year Return 3.39% 3.54%
Dividend Yield 2.55% 1.96%

SPEM profile: The Fund seeks to replicate as closely as possible the total return performance of an equity index based upon the emerging markets of the world. The Fund uses a passive management strategy designed to track the total return performance of the S&P Emerging Markets Index.

For further information, check out VWO vs SPEM comparison details.

22. Compare and contrast: VWO vs SPY.

Both VWO and SPY are ETFs. VWO has a lower 5-year return than SPY (11.82% vs 15.26%). VWO has a higher expense ratio than SPY (0.1% vs 0.09%). Below is the comparison between VWO and SPY.

VWO SPY
Segment Equity: Emerging Markets - Total Market Equity: U.S. - Large Cap
Net Assets $66.50B $322.49B
Expense Ratio 0.1% 0.09%
Management Style passive (index-based) passive (index-based)
Underlying Index FTSE Emerging Markets All Cap China A Inclusion Index Net TR US RIC S&P 500
YTD Return 14.31% 16.89%
1-Year Return 15.34% 18.29%
3-Year Return 6.53% 13.36%
5-Year Return 11.82% 15.26%
10-Year Return 3.39% 13.75%
Dividend Yield 2.55% 1.57%

SPY profile: The Trust seeks investment results that, before expenses, generally correspond to the price and yield performance of the component common stocks of the S&P 500 Index.

For further information, check out VWO vs SPY comparison details.

23. Compare and contrast: VWO vs VEU.

Both VWO and VEU are ETFs. VWO has a higher 5-year return than VEU (11.82% vs 9.36%). VWO has a higher expense ratio than VEU (0.1% vs 0.08%). Below is the comparison between VWO and VEU.

VWO VEU
Segment Equity: Emerging Markets - Total Market Equity: Global Ex-U.S. - Total Market
Net Assets $66.50B $27.58B
Expense Ratio 0.1% 0.08%
Management Style passive (index-based) passive (index-based)
Underlying Index FTSE Emerging Markets All Cap China A Inclusion Index Net TR US RIC FTSE All World ex US Net TR US RIC
YTD Return 14.31% 10.27%
1-Year Return 15.34% 10.91%
3-Year Return 6.53% 5.21%
5-Year Return 11.82% 9.36%
10-Year Return 3.39% 5.29%
Dividend Yield 2.55% 2.32%

VEU profile: The Fund seeks to track the performance of a benchmark index that measures the investment return of stocks of companies located in developed and emerging markets outside of the United States. The Fund employs an indexing investment approach designed to track the performance of the FTSE All-World ex US Index.

For further information, check out VWO vs VEU comparison details.

24. Compare and contrast: VWO vs VTI.

Both VWO and VTI are ETFs. VWO has a lower 5-year return than VTI (11.82% vs 15.65%). VWO has a higher expense ratio than VTI (0.1% vs 0.03%). Below is the comparison between VWO and VTI.

VWO VTI
Segment Equity: Emerging Markets - Total Market Equity: U.S. - Total Market
Net Assets $66.50B $188.90B
Expense Ratio 0.1% 0.03%
Management Style passive (index-based) passive (index-based)
Underlying Index FTSE Emerging Markets All Cap China A Inclusion Index Net TR US RIC CRSP US Total Market Index
YTD Return 14.31% 19.81%
1-Year Return 15.34% 21.19%
3-Year Return 6.53% 13.9%
5-Year Return 11.82% 15.65%
10-Year Return 3.39% 13.8%
Dividend Yield 2.55% 1.54%

VTI profile: The Fund seeks to track the performance of a benchmark index that measures the investment return of the overall stock market. The Fund employs an indexing investment approach to track the performance of the CRSP US Total Market Index. The Fund invests by holding a collection of securities that approximates the Index.

For further information, check out VWO vs VTI comparison details.

In the VWO review, we covered VWO key stats (return, performance, yield, expense ratio, and holdings), buy and sell analysis, and alternative investments. If this review was helpful to you, feel free to check out other mutual fund and ETF reviews.
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