VTI vs VWO
Vanguard Morningstar Total Stock Market ETF vs Vanguard FTSE Emerging Markets ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VWO offers more diversification with 6,334 holdings.
Side-by-Side Comparison
| Metric | VTI | VWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.06% | |
| AUM | $666.9B | $122.0B | |
| Dividend Yield | 1.07% | 2.39% | |
| Holdings | 3,543 | 6,334 | |
| YTD Return | +13.14% | +10.18% | |
| 1Y Return | +22.35% | +20.99% | |
| 3Y Return (annualized) | +21.83% | +18.45% | |
| 5Y Return (annualized) | +12.01% | +7.14% | |
| Volatility (annualized) | 15.3% | 20.1% | |
| Max Drawdown | -56.6% | -68.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 24, 2001 | Mar 4, 2005 |
VTI vs VWO Performance
Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is a ETF from Vanguard (US). Over the past year VTI returned +22.35% while VWO returned +20.99%. Year to date, VTI is up 13.14% versus a gain of 10.18% for VWO.
Over three years, VTI compounded at +21.83% per year against +18.45% for VWO; over five years the annualized figures are +12.01% and +7.14% respectively. Across the full 21-year window we track, VTI has the edge at +8.09% 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 15.3% 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 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
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 1.07% against 2.39% for VWO.
Holdings Overlap
VTI and VWO share 5 holdings out of 6766 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, VTI or VWO?
VTI has an expense ratio of 0.03% while VWO charges 0.06%. VTI is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VTI or VWO?
Over the past year VTI returned +22.35% vs +20.99% for VWO, so VTI leads on 1-year performance. Over the longest common window we track (21 years), VTI annualized +8.09% vs +4.98% for VWO. Past performance does not guarantee future results.
Which is riskier, VTI or VWO?
VWO has been the more volatile fund at 20.1% annualized versus 15.3% 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 combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTI and VWO?
VTI and VWO share 5 common holdings with a 0.0% weight overlap. Combined, they hold 6766 unique securities.
Which pays a higher dividend, VTI or VWO?
VTI yields 1.07% while VWO yields 2.39%, so VWO currently pays the higher dividend yield.
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