VUG vs VWO
Vanguard Growth ETF vs Vanguard FTSE Emerging Markets ETF
Quick Verdict
VUG has a lower expense ratio. VWO delivered stronger 1-year returns. VWO offers more diversification with 3982 holdings.
Side-by-Side Comparison
| Metric | VUG | VWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.06% | |
| AUM | $223.2B | $122.3B | |
| Dividend Yield | 0.47% | 2.37% | |
| Holdings | 155 | 6,334 | |
| YTD Return | +10.98% | +9.98% | |
| 1Y Return | +16.82% | +19.56% | |
| 3Y Return (annualized) | +24.53% | +17.60% | |
| 5Y Return (annualized) | +13.10% | +6.53% | |
| Volatility (annualized) | 16.5% | 20.1% | |
| Max Drawdown | -51.4% | -68.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Mar 4, 2005 |
VUG vs VWO Performance
Vanguard Growth ETF (VUG) is a ETF from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is a ETF from Vanguard (US). Over the past year VUG returned +16.82% while VWO returned +19.56%. Year to date, VUG is up 10.98% versus a gain of 9.98% for VWO.
Over three years, VUG compounded at +24.53% per year against +17.60% for VWO; over five years the annualized figures are +13.10% and +6.53% respectively. Across the full 21-year window we track, VUG has the edge at +11.31% annualized vs +4.97%. 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 16.5% for VUG. 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 -51.4% for VUG 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VUG 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, VUG currently yields 0.47% against 2.37% for VWO.
Holdings Overlap
VUG and VWO share 0 holdings out of 4128 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, VUG or VWO?
VUG has an expense ratio of 0.03% while VWO charges 0.06%. VUG is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VUG or VWO?
Over the past year VUG returned +16.82% vs +19.56% for VWO, so VWO leads on 1-year performance. Over the longest common window we track (21 years), VUG annualized +11.31% vs +4.97% for VWO. Past performance does not guarantee future results.
Which is riskier, VUG or VWO?
VWO has been the more volatile fund at 20.1% annualized versus 16.5% for VUG. Worst drawdown: VUG -51.4% vs VWO -68.3%.
Should I hold both VUG and VWO?
VUG and VWO have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VUG and VWO?
VUG and VWO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 4128 unique securities.
Which pays a higher dividend, VUG or VWO?
VUG yields 0.47% while VWO yields 2.37%, so VWO currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.