VT vs VWO
Vanguard Total World Stock ETF vs Vanguard FTSE Emerging Markets ETF
Quick Verdict
VT delivered stronger 1-year returns. VT offers more diversification with 10,133 holdings.
Side-by-Side Comparison
| Metric | VT | VWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.06% | |
| AUM | $78.6B | $122.0B | |
| Dividend Yield | 1.60% | 2.39% | |
| Holdings | 10,133 | 6,334 | |
| YTD Return | +13.66% | +10.31% | |
| 1Y Return | +23.01% | +20.68% | |
| 3Y Return (annualized) | +20.15% | +17.40% | |
| 5Y Return (annualized) | +10.74% | +6.25% | |
| Volatility (annualized) | 16.6% | 20.1% | |
| Max Drawdown | -50.6% | -68.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 24, 2008 | Mar 4, 2005 |
VT vs VWO Performance
Vanguard Total World Stock ETF (VT) is a ETF from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is a ETF from Vanguard (US). Over the past year VT returned +23.01% while VWO returned +20.68%. Year to date, VT is up 13.66% versus a gain of 10.31% for VWO.
Over three years, VT compounded at +20.15% per year against +17.40% for VWO; over five years the annualized figures are +10.74% and +6.25% respectively. Across the full 18-year window we track, VT has the edge at +7.31% annualized vs +4.98%. 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 16.6% for VT. 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 -50.6% for VT 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VT charges 0.06% per year while VWO charges 0.06%. On a $10,000 position that is $6 vs $6 annually. On income, VT currently yields 1.60% against 2.39% for VWO.
Holdings Overlap
VT and VWO share 3725 holdings out of 10242 unique holdings combined, representing a 6.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VT | Weight in VWO | Difference |
|---|---|---|---|
| 2330:AE | 1.64% | 15.69% | 14.05% |
| 9988:HK | 0.19% | 1.80% | 1.61% |
| 2454:TW | 0.17% | 1.64% | 1.47% |
| 2308:TW | Pro | Pro | Pro |
| 2317:TW | Pro | Pro | Pro |
| HDBK:MB | Pro | Pro | Pro |
| RELIANCE:MB | Pro | Pro | Pro |
| ICICIBANK:MB | Pro | Pro | Pro |
| ASX:TW | Pro | Pro | Pro |
| 532454:MB | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, VT or VWO?
VT has an expense ratio of 0.06% while VWO charges 0.06%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VT or VWO?
Over the past year VT returned +23.01% vs +20.68% for VWO, so VT leads on 1-year performance. Over the longest common window we track (18 years), VT annualized +7.31% vs +4.98% for VWO. Past performance does not guarantee future results.
Which is riskier, VT or VWO?
VWO has been the more volatile fund at 20.1% annualized versus 16.6% for VT. Worst drawdown: VT -50.6% vs VWO -68.3%.
Should I hold both VT and VWO?
VT and VWO have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VT and VWO?
VT and VWO share 3725 common holdings with a 6.1% weight overlap. Combined, they hold 10242 unique securities.
Which pays a higher dividend, VT or VWO?
VT yields 1.60% while VWO yields 2.39%, so VWO currently pays the higher dividend yield.
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