VOE vs VWO
Vanguard Morningstar Mid-Cap Value ETF vs Vanguard FTSE Emerging Markets ETF
Which is better, VOE or VWO?
Mid Cap Value against Large Cap Blend.
VOE has a lower expense ratio. VOE led over 1Y, 5Y and the full window, VWO over 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 | VOE | VWO |
|---|---|---|
| Expense Ratio | 0.05%Best | 0.06% |
| AUM | $23.9B | $122.0B |
| Dividend Yield | 1.80% | 2.29% |
| Holdings | 176 | 6,334 |
| YTD Return | +15.04%Best | +9.25% |
| 1Y Return | +21.04%Best | +16.23% |
| 3Y Return (annualized) | +16.91% | +17.32%Best |
| 5Y Return (annualized) | +9.78%Best | +5.92% |
| Volatility (annualized) | 17.6%Best | 20.1% |
| Max Drawdown | -63.4%Best | -68.3% |
| $10,000 over 5 years | $15,945Best | $13,332 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Value | Large Cap Blend |
| Inception | Aug 17, 2006 | Mar 4, 2005 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Aug 24, 2006 to Sep 10, 2026 (20 years).
VOE 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 20 years both funds cover.
VOE vs VWO Performance
Vanguard Morningstar Mid-Cap Value ETF (VOE) is an ETF from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is an ETF from Vanguard (US). Over the past year VOE returned +21.04% while VWO returned +16.23%. Year to date, VOE is up 15.04% versus a gain of 9.25% for VWO.
Over three years, VOE compounded at +16.91% per year against +17.32% for VWO; over five years the annualized figures are +9.78% and +5.92% respectively. Across the full 20-year window we track, VOE has the edge at +7.82% annualized vs +3.89%.
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 what each fund did in the worst stretch of the window measured above.
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 1.80% against 2.29% for VWO.
Holdings Overlap
At least 0.4% of VOE's money is in holdings VWO also owns.
Stated as a floor: for VWO, our book for it covers 88.0% 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.
1 positions in common, counted across the 169 positions we hold weights for in VOE and 4,694 in VWO, against full books of 176 and 6,334.
Top Shared Holdings
| Stock | Weight in VOE | Weight in VWO | Difference |
|---|---|---|---|
| HAL:MBHindustan Aeronautics Ltd | 0.44% | 0.07% | 0.37% |
You are not choosing between two funds in isolation.
Whichever of VOE 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, VOE or VWO?
VOE has an expense ratio of 0.05% while VWO charges 0.06%. VOE is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, VOE or VWO?
Over the past year VOE returned +21.04% vs +16.23% for VWO, so VOE leads on 1-year performance. Over the longest common window we track (20 years), VOE annualized +7.82% vs +3.89% for VWO. Past performance does not guarantee future results. This is information, not a recommendation.
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 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, VOE or VWO?
VOE yields 1.80% while VWO yields 2.29%, so VWO currently pays the higher dividend yield.
Is VWO better than VOE?
VOE has a lower expense ratio. VOE led over 1Y, 5Y and the full window, VWO over 3Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.