Average Daily Volume
10.06M
Fund Overview
Vanguard FTSE Emerging Markets ETF (VWO) is designed to provide investors with broad exposure to emerging market equities. The fund seeks to track the performance of the FTSE Emerging Markets All Cap China A Inclusion Index, which includes large-, mid-, and small-cap stocks across more than 20 emerging markets. VWO is one of the largest and most liquid ETFs focusing on emerging markets, offering investors a cost-effective way to diversify internationally. The fund holds over 5,000 stocks, providing extensive market coverage and reducing single-stock risk. VWO is particularly notable for its inclusion of China A-shares, which are shares of mainland Chinese companies denominated in yuan and traded on the Shanghai or Shenzhen stock exchanges.
- Asset Class
-
Equity
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- N/A
- Currency Hedged
-
No
- Portfolio Turnover
-
8 %
- Dividend Date
-
Why Invest in the VWO ETF?
Potential Benefits
- Provides diversified exposure to a broad range of emerging market equities, reducing single-country or single-stock risk.
- Low expense ratio compared to many competing emerging market ETFs, making it cost-efficient for long-term investors.
- Includes China A-shares, offering access to a segment of the market not fully represented in some other emerging market ETFs.
- High liquidity, allowing for easy entry and exit with minimal bid-ask spreads.
- Passively managed, which typically results in lower turnover and tax efficiency compared to actively managed funds.
Potential Risks
- Emerging markets are generally more volatile than developed markets, leading to higher short-term price fluctuations.
- Exposure to geopolitical risks, currency fluctuations, and less mature regulatory environments in some countries.
- Heavy weighting toward China, which may dominate performance and introduce concentration risk.
- Dividend payments may be less predictable due to varying corporate policies across emerging markets.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+5.0%
|
+2.9%
|
-7.0%
|
+9.0%
|
+1.6%
|
-0.2%
|
-1.6%
|
+3.0%
|
-1.8%
|
+0.4%
|
-
|
-
|
| 2025 |
+0.8%
|
+0.7%
|
+1.3%
|
0.0%
|
+3.9%
|
+5.5%
|
+0.7%
|
+3.5%
|
+5.7%
|
+1.5%
|
-1.2%
|
+0.9%
|
| 2024 |
-3.6%
|
+3.5%
|
+1.9%
|
+1.0%
|
+2.2%
|
+2.0%
|
+1.2%
|
+1.0%
|
+7.3%
|
-2.7%
|
-2.1%
|
-1.0%
|
| 2023 |
+8.3%
|
-6.7%
|
+2.6%
|
-0.4%
|
-3.0%
|
+4.8%
|
+5.9%
|
-5.9%
|
-2.5%
|
-3.2%
|
+7.1%
|
+3.3%
|
| 2022 |
+0.4%
|
-3.7%
|
-3.3%
|
-5.8%
|
+0.5%
|
-3.9%
|
-0.8%
|
-0.5%
|
-10.1%
|
-2.9%
|
+14.3%
|
-2.2%
|
| 2021 |
+3.1%
|
+1.6%
|
-0.7%
|
+1.8%
|
+1.7%
|
+1.3%
|
-5.9%
|
+2.2%
|
-3.3%
|
+1.3%
|
-2.9%
|
+1.6%
|
| 2020 |
-5.5%
|
-3.5%
|
-17.0%
|
+7.8%
|
+3.3%
|
+6.5%
|
+8.6%
|
+2.7%
|
-1.2%
|
+1.3%
|
+8.6%
|
+6.0%
|
| 2019 |
+9.7%
|
-0.4%
|
+2.3%
|
+2.1%
|
-6.4%
|
+5.4%
|
-1.8%
|
-3.3%
|
+0.9%
|
+3.9%
|
+0.5%
|
+7.1%
|
| 2018 |
+8.6%
|
-5.4%
|
-0.2%
|
-2.8%
|
-2.3%
|
-4.8%
|
+4.0%
|
-4.2%
|
-1.3%
|
-7.7%
|
+4.8%
|
-3.3%
|
| 2017 |
+5.8%
|
+2.2%
|
+2.8%
|
+1.6%
|
+1.0%
|
+0.8%
|
+5.3%
|
+3.0%
|
-0.5%
|
+2.4%
|
-0.3%
|
+3.7%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
PDD
|
PDD HOLDINGS INC ADR |
0.8 % |
|
YUMC
|
YUM CHINA HOLDINGS INC |
0.2 % |
|
AU
|
ANGLOGOLD ASHANTI PLC |
0.1 % |
|
BEKE
|
KE HOLDINGS INC ADR |
0.1 % |
|
TME
|
TENCENT MUSIC ENTERTAINMENT GROUP ADR |
0.1 % |
|
YMM
|
FULL TRUCK ALLIANCE CO LTD ADR |
0.1 % |
|
BZ
|
KANZHUN LTD ADR |
0.1 % |
|
ITUB
|
ITAU UNIBANCO HOLDING SA ADR |
0.1 % |
|
CHT
|
CHUNGHWA TELECOM CO LTD ADR |
0.0 % |
|
CIB
|
BANCOLOMBIA SA ADR |
0.0 % |
Top 10 holdings shown, out of 4 total holdings.
Related ETFs: VWO vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
VWO seeks to track the performance of the FTSE Emerging Markets All Cap China A Inclusion Index, which includes large-, mid-, and small-cap stocks across more than 20 emerging markets. The index is market-cap weighted, meaning larger companies have a greater impact on the fund's performance. VWO holds physical securities rather than using derivatives, providing direct exposure to the underlying stocks. The fund is passively managed, with rebalancing occurring as needed to align with the index. This approach minimizes turnover and helps maintain tax efficiency.
Frequently Asked Questions
What countries are included in VWO?
VWO includes stocks from over 20 emerging markets, with significant exposure to China, Taiwan, India, Brazil, and South Africa, among others.
How does VWO differ from EEM?
VWO includes China A-shares and has a lower expense ratio than EEM. It also tracks a different index (FTSE vs. MSCI) and offers broader market coverage by including small- and mid-cap stocks.
Is VWO a good long-term investment?
VWO can be a solid long-term investment for those seeking growth in emerging markets, but investors should be prepared for higher volatility compared to developed market ETFs.
Does VWO pay dividends?
Yes, VWO pays dividends, but the yield and frequency may vary based on the dividend policies of its underlying holdings.
Industry Overview
The Vanguard FTSE Emerging Markets ETF (VWO) provides exposure to the dynamic and rapidly growing economies of emerging markets. These markets, which include countries like China, India, Brazil, and Taiwan, often exhibit higher growth potential compared to developed markets but come with increased volatility and risk. Investing in emerging markets can offer diversification benefits and the potential for higher returns, though investors should be prepared for periods of significant market swings. VWO's inclusion of China A-shares sets it apart from some peers, providing broader access to the world's second-largest economy.
Alternative Comparison
VWO is often compared to iShares Core MSCI Emerging Markets ETF (IEMG) and iShares MSCI Emerging Markets ETF (EEM). While all three provide exposure to emerging markets, VWO includes China A-shares, which are not fully represented in the MSCI indices tracked by IEMG and EEM. VWO also boasts a lower expense ratio than EEM, making it a more cost-effective choice for long-term investors. Unlike some competitors that focus solely on large-cap stocks, VWO's inclusion of small- and mid-cap stocks offers broader market coverage.
Issuer Overview
Vanguard is one of the world's largest investment management companies, known for its low-cost index funds and ETFs. The firm is a pioneer in passive investing, offering a wide range of products designed to provide broad market exposure at minimal cost. Vanguard's client-owned structure aligns its interests with those of its investors, often resulting in lower fees and a long-term focus.
Conclusion
VWO is a standout choice for investors seeking diversified, low-cost exposure to emerging markets. Its inclusion of China A-shares and broad market coverage make it a compelling option compared to many peers. While emerging markets carry inherent risks, VWO's passive management and low fees position it well for long-term growth. Investors should weigh the potential for higher returns against the volatility typical of emerging markets.
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