VOT vs VWO
Vanguard Morningstar Mid-Cap Growth ETF vs Vanguard FTSE Emerging Markets ETF
Quick Verdict
VOT has a lower expense ratio. VWO delivered stronger 1-year returns. VWO offers more diversification with 6,334 holdings.
Side-by-Side Comparison
| Metric | VOT | VWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.06% | |
| AUM | $19.1B | $122.0B | |
| Dividend Yield | 0.62% | 2.39% | |
| Holdings | 129 | 6,334 | |
| YTD Return | +8.10% | +9.40% | |
| 1Y Return | +7.24% | +19.92% | |
| 3Y Return (annualized) | +15.85% | +18.10% | |
| 5Y Return (annualized) | +5.42% | +7.28% | |
| Volatility (annualized) | 18.5% | 20.1% | |
| Max Drawdown | -60.3% | -68.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 17, 2006 | Mar 4, 2005 |
VOT vs VWO Performance
Vanguard Morningstar Mid-Cap Growth ETF (VOT) is a ETF from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is a ETF from Vanguard (US). Over the past year VOT returned +7.24% while VWO returned +19.92%. Year to date, VOT is up 8.10% versus a gain of 9.40% for VWO.
Over three years, VOT compounded at +15.85% per year against +18.10% for VWO; over five years the annualized figures are +5.42% and +7.28% respectively. Across the full 20-year window we track, VOT has the edge at +9.54% 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 18.5% for VOT. 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 VOT 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VOT 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, VOT currently yields 0.62% against 2.39% for VWO.
Holdings Overlap
VOT and VWO share 0 holdings out of 4105 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, VOT or VWO?
VOT has an expense ratio of 0.05% while VWO charges 0.06%. VOT is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VOT or VWO?
Over the past year VOT returned +7.24% vs +19.92% for VWO, so VWO leads on 1-year performance. Over the longest common window we track (20 years), VOT annualized +9.54% vs +4.94% for VWO. Past performance does not guarantee future results.
Which is riskier, VOT or VWO?
VWO has been the more volatile fund at 20.1% annualized versus 18.5% for VOT. Worst drawdown: VOT -60.3% vs VWO -68.3%.
Should I hold both VOT and VWO?
VOT and VWO have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VOT and VWO?
VOT and VWO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 4105 unique securities.
Which pays a higher dividend, VOT or VWO?
VOT yields 0.62% while VWO yields 2.39%, so VWO currently pays the higher dividend yield.
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