EDV vs VWO
Vanguard Extended Duration Treasury ETF vs Vanguard FTSE Emerging Markets ETF
Quick Verdict
EDV has a lower expense ratio. VWO delivered stronger 1-year returns. VWO offers more diversification with 3982 holdings.
Side-by-Side Comparison
| Metric | EDV | VWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.06% | |
| AUM | $3.5B | $122.3B | |
| Dividend Yield | 4.83% | 2.37% | |
| Holdings | 83 | 6,334 | |
| 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 Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 6, 2007 | Mar 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
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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