VOE vs VWO
Vanguard Morningstar Mid-Cap Value ETF vs Vanguard FTSE Emerging Markets ETF
Quick Verdict
VOE has a lower expense ratio. VOE delivered stronger 1-year returns. VWO offers more diversification with 6,334 holdings.
Side-by-Side Comparison
| Metric | VOE | VWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.06% | |
| AUM | $23.9B | $122.0B | |
| Dividend Yield | 1.81% | 2.39% | |
| Holdings | 176 | 6,334 | |
| YTD Return | +17.32% | +9.40% | |
| 1Y Return | +24.01% | +19.92% | |
| 3Y Return (annualized) | +17.81% | +18.10% | |
| 5Y Return (annualized) | +10.31% | +7.28% | |
| Volatility (annualized) | 17.6% | 20.1% | |
| Max Drawdown | -63.4% | -68.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 17, 2006 | Mar 4, 2005 |
VOE vs VWO Performance
Vanguard Morningstar Mid-Cap Value ETF (VOE) is a ETF from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is a ETF from Vanguard (US). Over the past year VOE returned +24.01% while VWO returned +19.92%. Year to date, VOE is up 17.32% versus a gain of 9.40% for VWO.
Over three years, VOE compounded at +17.81% per year against +18.10% for VWO; over five years the annualized figures are +10.31% and +7.28% respectively. Across the full 20-year window we track, VOE has the edge at +7.95% 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 17.6% for VOE. 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 -63.4% for VOE 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VOE 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, VOE currently yields 1.81% against 2.39% for VWO.
Holdings Overlap
VOE and VWO share 0 holdings out of 4153 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, VOE or VWO?
VOE has an expense ratio of 0.05% while VWO charges 0.06%. VOE is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VOE or VWO?
Over the past year VOE returned +24.01% vs +19.92% for VWO, so VOE leads on 1-year performance. Over the longest common window we track (20 years), VOE annualized +7.95% vs +4.94% for VWO. Past performance does not guarantee future results.
Which is riskier, VOE or VWO?
VWO has been the more volatile fund at 20.1% annualized versus 17.6% for VOE. Worst drawdown: VOE -63.4% vs VWO -68.3%.
Should I hold both VOE and VWO?
VOE and VWO have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VOE and VWO?
VOE and VWO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 4153 unique securities.
Which pays a higher dividend, VOE or VWO?
VOE yields 1.81% while VWO yields 2.39%, so VWO currently pays the higher dividend yield.
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