VO vs VWO
Vanguard Morningstar Mid-Cap ETF vs Vanguard FTSE Emerging Markets ETF
Which is better, VO or VWO?
Mid Cap Blend against Large Cap Blend.
VO has a lower expense ratio. VO led over 5Y and the full window, VWO over 1Y and 3Y.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VO | VWO |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.06% |
| AUM | $107.4B | $127.3B |
| Dividend Yield | 1.30% | 2.29% |
| Holdings | 287 | 6,378 |
| YTD Return | +9.33%Best | +7.80% |
| 1Y Return | +9.45% | +10.74%Best |
| 3Y Return (annualized) | +17.27% | +18.04%Best |
| 5Y Return (annualized) | +7.37%Best | +6.48% |
| Volatility (annualized) | 17.1%Best | 20.0% |
| Max Drawdown | -60.3%Best | -68.3% |
| $10,000 over 5 years | $14,270Best | $13,688 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Large Cap Blend |
| Inception | Jan 26, 2004 | Mar 4, 2005 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Mar 10, 2005 to Oct 1, 2026 (21.6 years).
VO vs VWO growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 21.6 years both funds cover.
VO vs VWO Performance
Vanguard Morningstar Mid-Cap ETF (VO) is an ETF from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is an ETF from Vanguard (US). Over the past year VO returned +9.45% while VWO returned +10.74%. Year to date, VO is up 9.33% versus a gain of 7.80% for VWO.
Over three years, VO compounded at +17.27% per year against +18.04% for VWO; over five years the annualized figures are +7.37% and +6.48% respectively. Across the full 22-year window we track, VO has the edge at +8.63% annualized vs +4.85%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWO has been the more volatile fund, with annualized monthly volatility of 20.0% compared with 17.1% for VO. 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 -60.3% for VO and -68.3% for VWO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VO charges 0.03% per year while VWO charges 0.06%. On a $10,000 position that is $3 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, VO currently yields 1.30% against 2.29% for VWO.
Holdings Overlap
At least 0.5% of VO's money is in holdings VWO also owns.
Stated as a floor: for VWO, our book for it covers 89.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
2 positions in common, counted across the 283 positions we hold weights for in VO and 4,688 in VWO, against full books of 287 and 6,378.
You are not choosing between two funds in isolation.
Whichever of VO and VWO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VO or VWO?
VO has an expense ratio of 0.03% while VWO charges 0.06%. VO is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, VO or VWO?
Over the past year VO returned +9.45% vs +10.74% for VWO, so VWO leads on 1-year performance. Over the longest common window we track (22 years), VO annualized +8.63% vs +4.85% for VWO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VO or VWO?
VWO has been the more volatile fund at 20.0% annualized versus 17.1% for VO. Worst drawdown: VO -60.3% vs VWO -68.3%.
Should I hold both VO and VWO?
VO and VWO have a monthly-return correlation of 0.75, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VO or VWO?
VO yields 1.30% while VWO yields 2.29%, so VWO currently pays the higher dividend yield.
Is VWO better than VO?
VO has a lower expense ratio. VO led over 5Y and the full window, VWO over 1Y and 3Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.