VIG vs VWO
Vanguard Dividend Appreciation ETF vs Vanguard FTSE Emerging Markets ETF
Quick Verdict
VIG has a lower expense ratio. VWO delivered stronger 1-year returns. VWO offers more diversification with 6,334 holdings.
Side-by-Side Comparison
| Metric | VIG | VWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.06% | |
| AUM | $111.4B | $122.0B | |
| Dividend Yield | 1.49% | 2.39% | |
| Holdings | 335 | 6,334 | |
| YTD Return | +10.70% | +9.40% | |
| 1Y Return | +17.31% | +19.92% | |
| 3Y Return (annualized) | +16.80% | +18.10% | |
| 5Y Return (annualized) | +10.39% | +7.28% | |
| Volatility (annualized) | 13.3% | 20.1% | |
| Max Drawdown | -48.2% | -68.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 21, 2006 | Mar 4, 2005 |
VIG vs VWO Performance
Vanguard Dividend Appreciation ETF (VIG) is a ETF from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is a ETF from Vanguard (US). Over the past year VIG returned +17.31% while VWO returned +19.92%. Year to date, VIG is up 10.70% versus a gain of 9.40% for VWO.
Over three years, VIG compounded at +16.80% per year against +18.10% for VWO; over five years the annualized figures are +10.39% and +7.28% respectively. Across the full 20-year window we track, VIG has the edge at +8.60% annualized vs +4.94%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWO has been the more volatile fund, with annualized monthly volatility of 20.1% compared with 13.3% for VIG. 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 -48.2% for VIG 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VIG charges 0.04% per year while VWO charges 0.06%. On a $10,000 position that is $4 vs $6 annually, a gap of $2 per year that compounds over a long holding period. On income, VIG currently yields 1.49% against 2.39% for VWO.
Holdings Overlap
VIG and VWO share 0 holdings out of 4315 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, VIG or VWO?
VIG has an expense ratio of 0.04% while VWO charges 0.06%. VIG is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VIG or VWO?
Over the past year VIG returned +17.31% vs +19.92% for VWO, so VWO leads on 1-year performance. Over the longest common window we track (20 years), VIG annualized +8.60% vs +4.94% for VWO. Past performance does not guarantee future results.
Which is riskier, VIG or VWO?
VWO has been the more volatile fund at 20.1% annualized versus 13.3% for VIG. Worst drawdown: VIG -48.2% vs VWO -68.3%.
Should I hold both VIG and VWO?
VIG and VWO have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VIG and VWO?
VIG and VWO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 4315 unique securities.
Which pays a higher dividend, VIG or VWO?
VIG yields 1.49% while VWO yields 2.39%, so VWO currently pays the higher dividend yield.
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