VIG vs VWO
Vanguard Dividend Appreciation ETF vs Vanguard FTSE Emerging Markets ETF
Which is better, VIG or VWO?
Each has led over a different period.
VIG has a lower expense ratio. VIG led over 1Y, 5Y and the full window, VWO over 3Y.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VIG | VWO |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.06% |
| AUM | $109.1B | $125.4B |
| Dividend Yield | 1.56% | 2.05% |
| Holdings | 336 | 6,378 |
| YTD Return | +10.11%Best | +7.56% |
| 1Y Return | +12.75%Best | +12.56% |
| 3Y Return (annualized) | +17.17% | +17.73%Best |
| 5Y Return (annualized) | +10.58%Best | +5.92% |
| Volatility (annualized) | 13.3%Best | 20.1% |
| Max Drawdown | -48.2%Best | -68.3% |
| $10,000 over 5 years | $16,534Best | $13,332 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Apr 21, 2006 | Mar 4, 2005 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Apr 27, 2006 to Oct 14, 2026 (20.5 years).
VIG vs VWO growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 20.5 years both funds cover.
VIG vs VWO Performance
Vanguard Dividend Appreciation ETF (VIG) is an ETF from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is an ETF from Vanguard (US). Over the past year VIG returned +12.75% while VWO returned +12.56%. Year to date, VIG is up 10.11% versus a gain of 7.56% for VWO.
Over three years, VIG compounded at +17.17% per year against +17.73% for VWO; over five years the annualized figures are +10.58% and +5.92% respectively. Across the full 21-year window we track, VIG has the edge at +8.51% annualized vs +3.24%.
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 13.3% for VIG. 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 -48.2% for VIG and -68.3% for VWO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.68. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VIG charges 0.04% per year while VWO charges 0.06%. On a $10,000 position that is $4 vs $6 annually, a gap of $2 per year that compounds over a long holding period. On income, VIG currently yields 1.56% against 2.05% for VWO.
Holdings Overlap
At least 0.3% of VIG's money is in holdings VWO also owns.
Stated as a floor: for VWO, our book for it covers 89.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 332 positions we hold weights for in VIG and 4,688 in VWO, against full books of 336 and 6,378.
Top Shared Holdings
| Stock | Weight in VIG | Weight in VWO | Difference |
|---|---|---|---|
| MKLMarkel Group Inc | 0.29% | 1.17% | 0.88% |
You are not choosing between two funds in isolation.
Whichever of VIG and VWO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VIG or VWO?
VIG has an expense ratio of 0.04% while VWO charges 0.06%. VIG is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, VIG or VWO?
Over the past year VIG returned +12.75% vs +12.56% for VWO, so VIG leads on 1-year performance. Over the longest common window we track (21 years), VIG annualized +8.51% vs +3.24% for VWO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VIG or VWO?
VWO has been the more volatile fund at 20.1% annualized versus 13.3% for VIG. Worst drawdown: VIG -48.2% vs VWO -68.3%.
Should I hold both VIG and VWO?
VIG and VWO have a monthly-return correlation of 0.68, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VIG or VWO?
VIG yields 1.56% while VWO yields 2.05%, so VWO currently pays the higher dividend yield.
Is VWO better than VIG?
VIG has a lower expense ratio. VIG led over 1Y, 5Y and the full window, VWO over 3Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.