VWO vs VFEM: returns, risk and drawdowns compared
Vanguard FTSE Emerging Markets ETF against Vanguard FTSE Emerging Markets UCITS ETF (Dist), over the same 6 years (July 2020 to October 2026) with dividends reinvested.
Data updated October 2026
From July 2020 to October 2026, VWO returned 9.9% a year and VFEM 6.5% a year on average, so VWO came out ahead by 3.3% a year. VWO was the more volatile of the two (14.5% against 11.7% a year), and the deepest falls from a month-end high were 31.9% for VWO and 22.6% for VFEM.
The correlation of monthly returns was 0.82: they usually moved together. Over 40 rolling 3-year periods, VWO did better in 75% and VFEM in 25%.
VWO trades in USD and VFEM in EUR: each return is in its own currency, so part of the gap reflects the move of the euro against the dollar.
Side by side
| VWO | VFEM | |
|---|---|---|
| Annual return (CAGR) | +9.9% | +6.5% |
| Total return | +80% | +49% |
| Annual volatility | 14.5% | 11.7% |
| Maximum drawdown (month-end) | −31.9% | −22.6% |
| Worst month | −10.1% | −8.6% |
| Best month | +14.3% | +9.3% |
| Positive months | 60% | 57% |
| Best year | 2025: +25.6% | 2024: +16.8% |
| Worst year | 2022: −18.0% | 2022: −15.1% |
| 1-year return | +8.8% | +9.5% |
| 5 years, a year | +5.3% | +3.4% |
| 10 years, a year | — | — |
| Trading currency | USD | EUR |
First nine rows: the same 75 months for both funds. Trailing returns: to each fund’s last close.
Growth of 10,000: VWO vs VFEM
Returns by calendar year
| Year | VWO | VFEM |
|---|---|---|
| 2025 | +25.6% | +9.0% |
| 2024 | +10.6% | +16.8% |
| 2023 | +9.3% | +1.3% |
| 2022 | −18.0% | −15.1% |
| 2021 | +1.3% | +5.0% |
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.
The comparison uses only the months in which both funds have prices, so the figures cover the same period even when one fund is older.
Questions
Which has returned more, VWO or VFEM?
From July 2020 to October 2026, VWO returned +9.9% a year and VFEM +6.5% a year, with dividends reinvested, each in its own trading currency (USD and EUR). Over rolling 3-year periods VWO did better in 75% of cases. Past returns do not predict future returns.
Which is riskier, VWO or VFEM?
Over the same months annual volatility was 14.5% for VWO and 11.7% for VFEM; the deepest fall from a month-end high was 31.9% and 22.6%, and the worst single month −10.1% and −8.6%.
How correlated are VWO and VFEM?
The correlation of their monthly returns was 0.82: they usually moved together. Combining them has historically given some diversification.
More comparisons
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.