VWO vs VXF
Vanguard FTSE Emerging Markets ETF vs Vanguard Extended Market ETF
Quick Verdict
VXF has a lower expense ratio. VXF delivered stronger 1-year returns. VWO offers more diversification with 6,334 holdings.
Side-by-Side Comparison
| Metric | VWO | VXF | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.05% | |
| AUM | $122.0B | $30.5B | |
| Dividend Yield | 2.39% | 1.03% | |
| Holdings | 6,334 | 3,376 | |
| YTD Return | +10.18% | +16.66% | |
| 1Y Return | +20.99% | +24.93% | |
| 3Y Return (annualized) | +18.45% | +20.39% | |
| 5Y Return (annualized) | +7.14% | +7.03% | |
| Volatility (annualized) | 20.1% | 18.7% | |
| Max Drawdown | -68.3% | -59.4% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 4, 2005 | Dec 27, 2001 |
VWO vs VXF Performance
Vanguard FTSE Emerging Markets ETF (VWO) is a ETF from Vanguard (US) and Vanguard Extended Market ETF (VXF) is a ETF from Vanguard (US). Over the past year VWO returned +20.99% while VXF returned +24.93%. Year to date, VWO is up 10.18% versus a gain of 16.66% for VXF.
Over three years, VWO compounded at +18.45% per year against +20.39% for VXF; over five years the annualized figures are +7.14% and +7.03% respectively. Across the full 21-year window we track, VXF has the edge at +9.04% 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 18.7% for VXF. 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 -68.3% for VWO and -59.4% for VXF. 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VWO charges 0.06% per year while VXF charges 0.05%. On a $10,000 position that is $6 vs $5 annually, a gap of $1 per year that compounds over a long holding period. On income, VWO currently yields 2.39% against 1.03% for VXF.
Holdings Overlap
VWO and VXF share 5 holdings out of 7273 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, VWO or VXF?
VWO has an expense ratio of 0.06% while VXF charges 0.05%. VXF is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VWO or VXF?
Over the past year VWO returned +20.99% vs +24.93% for VXF, so VXF leads on 1-year performance. Over the longest common window we track (21 years), VWO annualized +4.98% vs +9.04% for VXF. Past performance does not guarantee future results.
Which is riskier, VWO or VXF?
VWO has been the more volatile fund at 20.1% annualized versus 18.7% for VXF. Worst drawdown: VWO -68.3% vs VXF -59.4%.
Should I hold both VWO and VXF?
VWO and VXF have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VWO and VXF?
VWO and VXF share 5 common holdings with a 0.0% weight overlap. Combined, they hold 7273 unique securities.
Which pays a higher dividend, VWO or VXF?
VWO yields 2.39% while VXF yields 1.03%, so VWO currently pays the higher dividend yield.
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