EDV vs VWO

Quick Verdict

EDV has a lower expense ratio. VWO delivered stronger 1-year returns. VWO offers more diversification with 3982 holdings.

Lower Fees: EDVHigher Returns: VWOMore Diversified: VWO

Side-by-Side Comparison

MetricEDVVWOWinner
Expense Ratio0.05%0.06%
AUM$3.5B$122.3B
Dividend Yield4.83%2.37%
Holdings836,334
YTD Return-5.81%+10.11%
1Y Return-4.23%+21.05%
3Y Return (annualized)-4.61%+17.66%
5Y Return (annualized)-12.39%+6.52%
Volatility (annualized)21.8%20.1%
Max Drawdown-62.0%-68.3%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionDec 6, 2007Mar 4, 2005

EDV vs VWO Performance

Vanguard Extended Duration Treasury ETF (EDV) is a ETF from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is a ETF from Vanguard (US). Over the past year EDV returned -4.23% while VWO returned +21.05%. Year to date, EDV is down 5.81% versus a gain of 10.11% for VWO.

Over three years, EDV compounded at -4.61% per year against +17.66% for VWO; over five years the annualized figures are -12.39% and +6.52% respectively. Across the full 19-year window we track, VWO has the edge at +4.98% annualized vs -1.49%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

EDV has been the more volatile fund, with annualized monthly volatility of 21.8% compared with 20.1% for VWO. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -62.0% for EDV and -68.3% for VWO. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at -0.13. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

EDV charges 0.05% per year while VWO charges 0.06%. On a $10,000 position that is $5 vs $6 annually, a gap of $1 per year that compounds over a long holding period. On income, EDV currently yields 4.83% against 2.37% for VWO.

Holdings Overlap

0.0%overlap

EDV and VWO share 0 holdings out of 4058 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, EDV or VWO?

EDV has an expense ratio of 0.05% while VWO charges 0.06%. EDV is the cheaper option. On a $10,000 investment, that is $1 per year of difference.

Which performed better, EDV or VWO?

Over the past year EDV returned -4.23% vs +21.05% for VWO, so VWO leads on 1-year performance. Over the longest common window we track (19 years), EDV annualized -1.49% vs +4.98% for VWO. Past performance does not guarantee future results.

Which is riskier, EDV or VWO?

EDV has been the more volatile fund at 21.8% annualized versus 20.1% for VWO. Worst drawdown: EDV -62.0% vs VWO -68.3%.

Should I hold both EDV and VWO?

EDV and VWO have a monthly-return correlation of -0.13, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between EDV and VWO?

EDV and VWO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 4058 unique securities.

Which pays a higher dividend, EDV or VWO?

EDV yields 4.83% while VWO yields 2.37%, so EDV currently pays the higher dividend yield.

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