VV vs VWO
Vanguard Large-Cap ETF vs Vanguard FTSE Emerging Markets ETF
Quick Verdict
VV has a lower expense ratio. VV delivered stronger 1-year returns. VWO offers more diversification with 3982 holdings.
Side-by-Side Comparison
| Metric | VV | VWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.06% | |
| AUM | $52.5B | $122.3B | |
| Dividend Yield | 1.25% | 2.37% | |
| Holdings | 446 | 6,334 | |
| YTD Return | +13.59% | +10.11% | |
| 1Y Return | +21.25% | +21.05% | |
| 3Y Return (annualized) | +21.81% | +17.66% | |
| 5Y Return (annualized) | +12.84% | +6.52% | |
| Volatility (annualized) | 14.8% | 20.1% | |
| Max Drawdown | -56.0% | -68.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 27, 2004 | Mar 4, 2005 |
VV vs VWO Performance
Vanguard Large-Cap ETF (VV) is a ETF from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is a ETF from Vanguard (US). Over the past year VV returned +21.25% while VWO returned +21.05%. Year to date, VV is up 13.59% versus a gain of 10.11% for VWO.
Over three years, VV compounded at +21.81% per year against +17.66% for VWO; over five years the annualized figures are +12.84% and +6.52% respectively. Across the full 21-year window we track, VV has the edge at +9.52% 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 14.8% for VV. 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 -56.0% for VV 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VV 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, VV currently yields 1.25% against 2.37% for VWO.
Holdings Overlap
VV and VWO share 0 holdings out of 4413 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, VV or VWO?
VV has an expense ratio of 0.03% while VWO charges 0.06%. VV is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VV or VWO?
Over the past year VV returned +21.25% vs +21.05% for VWO, so VV leads on 1-year performance. Over the longest common window we track (21 years), VV annualized +9.52% vs +4.98% for VWO. Past performance does not guarantee future results.
Which is riskier, VV or VWO?
VWO has been the more volatile fund at 20.1% annualized versus 14.8% for VV. Worst drawdown: VV -56.0% vs VWO -68.3%.
Should I hold both VV and VWO?
VV and VWO have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VV and VWO?
VV and VWO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 4413 unique securities.
Which pays a higher dividend, VV or VWO?
VV yields 1.25% 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.