VWO: Vanguard FTSE Emerging Markets ETF returns, drawdowns and risk
Funds on emerging and Asian markets, as a block or country by country.
Data updated October 2026
VWO · US exchange · USDCategory: Emerging markets and Asia ETFsData from June 2020
From June 2020 to October 2026 VWO returned 9.6% a year on average with dividends reinvested, in US dollars: $10,000 invested at the start grew to $18,000.
Its deepest fall was 34.3%, from February 2021 to October 2022, and it took about 52 months to get back to the previous high. Annual volatility was 17.6%; at the last close it was 5.0% below its high.
Against SPY (SPDR S&P 500 ETF Trust), over the 76 months both have data, the correlation of monthly returns was 0.63: they moved together only in part. Beta was 0.60. In months when SPY rose, VWO moved 59% as much on average; in months when SPY fell, 59% as much.
Key figures
- Annual return (CAGR)
- +9.6%
- 1-year return
- +8.8%
- 5 years, a year
- +5.3%
- 10 years, a year
- —
- Annual volatility
- 17.6%
- Maximum drawdown
- −34.3%
- Sharpe ratio
- 0.45
- Worst year
- 2022: −18.0%
Trailing returns
| Period | VWO | SPY |
|---|---|---|
| 1 year | +8.8% | +16.6% |
| 3 years, a year | +18.9% | +23.1% |
| 5 years, a year | +5.3% | +12.7% |
To the last close of October 2026. Periods longer than a year are annualised.
Growth of $10,000: VWO vs SPY
Month-end values from July 2020, the first month both funds have data.
VWO drawdowns
Percentage below the previous high, weekly.
Returns by calendar year
| Year | VWO | SPY |
|---|---|---|
| 2026(partial) | +9.2% | +13.3% |
| 2025 | +25.6% | +17.7% |
| 2024 | +10.6% | +24.9% |
| 2023 | +9.3% | +26.2% |
| 2022 | −18.0% | −18.2% |
| 2021 | +1.3% | +28.7% |
| 2020(partial) | +30.8% | — |
VWO compared
How the figures are calculated
Total return in the fund’s trading currency, from end-of-day prices with dividends reinvested on the ex-date. The fund’s own ongoing charges are already reflected in its price; trading costs, taxes and currency conversion are not included. Past returns do not predict future returns.
Sharpe ratio uses the return of short-term government bills in the same currency as the risk-free rate. The growth chart uses month-end values; drawdowns and volatility use daily closes.
Questions
What is the average annual return of VWO?
From June 2020 to October 2026 VWO returned 9.6% a year on average (CAGR) with dividends reinvested, in USD. Over the last 5 years: +5.3% a year. Over the last 12 months: +8.8%.
What was the worst drawdown of VWO?
34.3%, from February 2021 to October 2022; it took about 52 months from the previous high to get back to it.
How volatile is VWO?
Annual volatility was 17.6% over the period. Its worst month was −10.1% and 59% of months were positive. Worst calendar year: 2022 (−18.0%).
How closely does VWO follow SPY?
Over 76 months the correlation of monthly returns was 0.63, so they moved together only in part, with a beta of 0.60.
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Other Emerging markets and Asia ETFs
- All Emerging markets and Asia ETFsReturns and risk side by side
- IEMG — iShares Core MSCI Emerging Markets ETFCAGR +6.0%
- EIMI — iShares Core MSCI Emerging Markets IMI UCITS ETF (Acc)CAGR +7.3%
- EEM — iShares MSCI Emerging Markets ETFCAGR +5.2%
- VFEM — Vanguard FTSE Emerging Markets UCITS ETF (Dist)CAGR +5.1%
- XMME — Xtrackers MSCI Emerging Markets UCITS ETF 1CCAGR +6.2%
- INDA — iShares MSCI India ETFCAGR +5.0%
- MCHI — iShares MSCI China ETFCAGR +2.6%
- FXI — iShares China Large-Cap ETFCAGR +3.0%
- KWEB — KraneShares CSI China Internet ETFCAGR +1.3%
- EWT — iShares MSCI Taiwan ETFCAGR +13.4%
- EWY — iShares MSCI South Korea ETFCAGR +7.8%
Source: MarketStack end-of-day prices, total return with dividends reinvested. Figures are historical and descriptive; they are not forecasts and not investment advice. MEDGE Capital does not recommend buying or selling any instrument. Risk disclaimer.