VTI vs VWO
Vanguard Morningstar Total Stock Market ETF vs Vanguard FTSE Emerging Markets ETF
Which is better, VTI or VWO?
VTI has been ahead.
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window.
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 | VTI | VWO |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.06% |
| AUM | $666.9B | $122.0B |
| Dividend Yield | 1.03% | 2.29% |
| Holdings | 3,543 | 6,334 |
| YTD Return | +12.57%Best | +10.00% |
| 1Y Return | +17.22%Best | +15.58% |
| 3Y Return (annualized) | +20.87%Best | +17.69% |
| 5Y Return (annualized) | +11.86%Best | +6.01% |
| Volatility (annualized) | 15.4%Best | 20.1% |
| Max Drawdown | -56.6%Best | -68.3% |
| $10,000 over 5 years | $17,514Best | $13,389 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | May 24, 2001 | 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 Sep 11, 2026 (21.5 years).
VTI 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 21.5 years both funds cover.
VTI vs VWO Performance
Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is an ETF from Vanguard (US). Over the past year VTI returned +17.22% while VWO returned +15.58%. Year to date, VTI is up 12.57% versus a gain of 10.00% for VWO.
Over three years, VTI compounded at +20.87% per year against +17.69% for VWO; over five years the annualized figures are +11.86% and +6.01% respectively. Across the full 22-year window we track, VTI has the edge at +9.40% annualized vs +4.96%.
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 15.4% for VTI. 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 -56.6% for VTI 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VTI 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, VTI currently yields 1.03% against 2.29% for VWO.
Holdings Overlap
We hold position weights for 2,787 holdings in VTI and 4,694 in VWO, totalling 90.6% and 88.0% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 4 positions appear in both.
4 positions in common, counted across the 2,787 positions we hold weights for in VTI and 4,694 in VWO, against full books of 3,543 and 6,334.
You are not choosing between two funds in isolation.
Whichever of VTI 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, VTI or VWO?
VTI has an expense ratio of 0.03% while VWO charges 0.06%. VTI is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, VTI or VWO?
Over the past year VTI returned +17.22% vs +15.58% for VWO, so VTI leads on 1-year performance. Over the longest common window we track (22 years), VTI annualized +9.40% vs +4.96% for VWO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VTI or VWO?
VWO has been the more volatile fund at 20.1% annualized versus 15.4% for VTI. Worst drawdown: VTI -56.6% vs VWO -68.3%.
Should I hold both VTI and VWO?
VTI and VWO have a monthly-return correlation of 0.74, 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, VTI or VWO?
VTI yields 1.03% while VWO yields 2.29%, so VWO currently pays the higher dividend yield.
Is VWO better than VTI?
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.