VTV vs VWO
Vanguard Morningstar Value ETF vs Vanguard FTSE Emerging Markets ETF
Quick Verdict
VTV has a lower expense ratio. VTV delivered stronger 1-year returns. VWO offers more diversification with 6,334 holdings.
Side-by-Side Comparison
| Metric | VTV | VWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.06% | |
| AUM | $187.8B | $122.0B | |
| Dividend Yield | 1.85% | 2.39% | |
| Holdings | 311 | 6,334 | |
| YTD Return | +18.02% | +9.40% | |
| 1Y Return | +26.57% | +19.92% | |
| 3Y Return (annualized) | +19.29% | +18.10% | |
| 5Y Return (annualized) | +12.56% | +7.28% | |
| Volatility (annualized) | 14.5% | 20.1% | |
| Max Drawdown | -61.3% | -68.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Mar 4, 2005 |
VTV vs VWO Performance
Vanguard Morningstar Value ETF (VTV) is a ETF from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is a ETF from Vanguard (US). Over the past year VTV returned +26.57% while VWO returned +19.92%. Year to date, VTV is up 18.02% versus a gain of 9.40% for VWO.
Over three years, VTV compounded at +19.29% per year against +18.10% for VWO; over five years the annualized figures are +12.56% and +7.28% respectively. Across the full 21-year window we track, VTV has the edge at +7.59% 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 14.5% for VTV. 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 -61.3% for VTV 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VTV 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, VTV currently yields 1.85% against 2.39% for VWO.
Holdings Overlap
VTV and VWO share 0 holdings out of 4292 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, VTV or VWO?
VTV has an expense ratio of 0.03% while VWO charges 0.06%. VTV is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VTV or VWO?
Over the past year VTV returned +26.57% vs +19.92% for VWO, so VTV leads on 1-year performance. Over the longest common window we track (21 years), VTV annualized +7.59% vs +4.94% for VWO. Past performance does not guarantee future results.
Which is riskier, VTV or VWO?
VWO has been the more volatile fund at 20.1% annualized versus 14.5% for VTV. Worst drawdown: VTV -61.3% vs VWO -68.3%.
Should I hold both VTV and VWO?
VTV and VWO have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTV and VWO?
VTV and VWO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 4292 unique securities.
Which pays a higher dividend, VTV or VWO?
VTV yields 1.85% while VWO yields 2.39%, so VWO currently pays the higher dividend yield.
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