VWO alternatives and similar ETFs

The ETFs most like VWO are SCHE, IEMG and EEM. SCHE, IEMG and EEM hold stocks in emerging countries such as China, India, Taiwan and Brazil, like VWO.

Written by the Tactfolio research team. Fund facts checked October 17, 2026. Prices through October 16, 2026.

Key points

  • 6 funds can stand in for VWO: 3 of the same kind and 3 related funds.
  • VWO charges 0.06% a year (about $6 on $10,000). The cheapest alternative here, VEU, charges 0.04%.
  • SCHE moved most like VWO: a daily correlation of 1.00 over about the last five years.
  • Returns and drops for each pair use the same dates for both funds.

VWO alternatives at a glance#

Each fund below can stand in for VWO, closest first. “Same kind” funds hold the same kind of stocks through a different index. “Related” funds make a different bet that often moves the same way.

ETFHow closeYearly feeFee on $10,000Tracks
VWOThis fund0.06%$6FTSE Emerging Markets All Cap China A Inclusion Index
SCHESame kind of fund0.06%$6FTSE Emerging Index
IEMGSame kind of fund0.09%$9MSCI Emerging Markets Investable Market Index (USD) (Net)
EEMSame kind of fund0.72%$72MSCI Emerging Markets Index (Net)
VEURelated fund0.04%$4FTSE All-World ex US Index
VXUSRelated fund0.05%$5FTSE Global All Cap ex US Index
IXUSRelated fund0.07%$7MSCI ACWI ex USA IMI Index (Net)

Fees come from each fund company, checked on the dates shown on each fund’s page.

How VWO and its alternatives did over the same dates#

$10k$20k2013201520172019202120232025
VWOSCHEIEMGEEMGrowth of $10,000, log scale, with dividends reinvested. Past results do not tell you what happens next.

Each row measures the alternative and VWO on the days both traded, so neither gets a head start. Correlation shows how closely their daily moves matched over about the last five years. A value of 1 means they always moved together.

ETFMoves with VWOPer yearVWO per yearWorst dropVWO worst dropSince
SCHE1.004.6%4.7%−36.2%−36.4%January 2010
IEMG0.976.0%5.3%−38.7%−36.4%October 2012
EEM0.976.6%6.7%−66.4%−67.7%March 2005
VEU0.905.3%5.0%−61.5%−67.7%March 2007
VXUS0.906.5%4.3%−36.0%−36.4%January 2011
IXUS0.907.7%5.3%−36.2%−36.4%October 2012

Prices through October 16, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

Each VWO alternative, compared#

SCHE: Schwab Emerging Markets Equity ETF#

SCHE also holds stocks in emerging countries such as China, India, Taiwan and Brazil. It tracks the FTSE Emerging Index, while VWO tracks the FTSE Emerging Markets All Cap China A Inclusion Index.

It charges 0.06% a year, about $6 on $10,000, against $6 for VWO. It held 2,137 stocks, against 6,507 for VWO.

From January 2010 to October 2026, SCHE returned about 4.6% a year and VWO returned about 4.7% a year. Over about the last five years they moved almost exactly together (correlation 1.00).

Read the SCHE fund page for its returns by year and worst drop.

IEMG: iShares Core MSCI Emerging Markets ETF#

IEMG also holds stocks in emerging countries such as China, India, Taiwan and Brazil. It tracks the MSCI Emerging Markets Investable Market Index (USD) (Net), while VWO tracks the FTSE Emerging Markets All Cap China A Inclusion Index.

It charges 0.09% a year, about $9 on $10,000, against $6 for VWO. It held 2,857 stocks, against 6,507 for VWO.

From October 2012 to October 2026, IEMG returned about 6.0% a year and VWO returned about 5.3% a year. Over about the last five years they moved almost exactly together (correlation 0.97).

Read the IEMG fund page for its returns by year and worst drop.

EEM: iShares MSCI Emerging Markets ETF#

EEM also holds stocks in emerging countries such as China, India, Taiwan and Brazil. It tracks the MSCI Emerging Markets Index (Net), while VWO tracks the FTSE Emerging Markets All Cap China A Inclusion Index.

It charges 0.72% a year, about $72 on $10,000, against $6 for VWO. It held 1,186 stocks, against 6,507 for VWO.

From March 2005 to October 2026, EEM returned about 6.6% a year and VWO returned about 6.7% a year. Over about the last five years they moved almost exactly together (correlation 0.97).

Read the EEM fund page for its returns by year and worst drop.

VEU: Vanguard FTSE All-World ex-US ETF#

VEU is a looser match. It holds stocks in almost every country outside the US, rich and emerging, while VWO holds stocks in emerging countries such as China, India, Taiwan and Brazil.

It charges 0.04% a year, about $4 on $10,000, against $6 for VWO. It held 3,810 stocks, against 6,507 for VWO.

From March 2007 to October 2026, VEU returned about 5.3% a year and VWO returned about 5.0% a year. Over about the last five years they moved together on most days (correlation 0.90).

Read the VEU fund page for its returns by year and worst drop.

VXUS: Vanguard Total International Stock ETF#

VXUS is a looser match. It holds stocks in almost every country outside the US, rich and emerging, while VWO holds stocks in emerging countries such as China, India, Taiwan and Brazil.

It charges 0.05% a year, about $5 on $10,000, against $6 for VWO. It held 8,740 stocks, against 6,507 for VWO.

From January 2011 to October 2026, VXUS returned about 6.5% a year and VWO returned about 4.3% a year. Over about the last five years they moved together on most days (correlation 0.90).

Read the VXUS fund page for its returns by year and worst drop.

IXUS: iShares Core MSCI Total International Stock ETF#

IXUS is a looser match. It holds stocks in almost every country outside the US, rich and emerging, while VWO holds stocks in emerging countries such as China, India, Taiwan and Brazil.

It charges 0.07% a year, about $7 on $10,000, against $6 for VWO. It held 4,584 stocks, against 6,507 for VWO.

From October 2012 to October 2026, IXUS returned about 7.7% a year and VWO returned about 5.3% a year. Over about the last five years they moved together on most days (correlation 0.90).

Read the IXUS fund page for its returns by year and worst drop.

VWO versions from other fund companies#

Some people keep all their funds with one company. Here is the closest fund to VWO from each other company on this page:

  • Schwab: SCHE, Schwab Emerging Markets Equity ETF (same kind of fund, 0.06% a year)
  • iShares (BlackRock): IEMG, iShares Core MSCI Emerging Markets ETF (same kind of fund, 0.09% a year)

Most brokers let you buy any ETF, whoever runs it. Mutual fund versions, such as a fund company’s index mutual fund, are not listed here.

How to choose between VWO and its alternatives#

  • What it tracks. A fund on the same index holds the same stocks. A different index can mean different weights, more or fewer holdings, or a different mix.
  • The fee. The difference is often small. On $10,000, VWO costs about $6 a year. VEU costs about $4.
  • History. An older fund has been through more bad markets, so you can see how far it fell.
  • What you already own. Two funds that move together add little variety. A fund with a low correlation behaves more on its own.

Swapping VWO to harvest a tax loss#

Some investors sell a fund at a loss to lower their taxes, then buy a similar fund so they stay invested. This is called tax-loss harvesting.

The IRS wash sale rule blocks the loss if you buy a “substantially identical” security within 30 days before or after the sale. The IRS has not said exactly when two funds count. Funds on the same index are more likely to. Funds on a different index, such as SCHE, IEMG or EEM, are less likely to.

Ask a tax professional before you rely on this. Read the IRS rules in Publication 550.

Test VWO and its alternatives in a backtest#

Tactfolio is a platform where you build rules-based investing strategies, backtest them on decades of real prices, share them, and run them automatically in your own Alpaca account. Open the builder, add VWO and SCHE, and see how each would have done on the same dates, or how a mix of both would have done.

The details#

Alternatives are picked from facts, not from returns. First come funds that track the same index as VWO. Then come funds that hold the same kind of stocks through another index. Last come funds from a close category that make a different bet. Leveraged funds are only listed as alternatives to other leveraged funds.

Within each group, the funds whose daily returns moved most like VWO over about the last five years come first. Returns and worst drops use Tactfolio’s stored daily prices, adjusted for splits, with dividends reinvested. Each alternative is measured with VWO only on days both traded. Read what a backtest simulates for more on these measures.

Common questions#

What ETF is most similar to VWO?#

SCHE is the closest. SCHE also holds stocks in emerging countries such as China, India, Taiwan and Brazil. It tracks the FTSE Emerging Index, while VWO tracks the FTSE Emerging Markets All Cap China A Inclusion Index. Over about the last five years they moved almost exactly together.

Is there a cheaper alternative to VWO?#

Yes. VEU charges 0.04% a year and VXUS charges 0.05% a year, against 0.06% for VWO. On $10,000 that is about $4 a year instead of $6.

Is VWO or SCHE better?#

Neither is better for everyone. From January 2010 to October 2026, VWO returned about 4.7% a year and SCHE returned about 4.6% a year. VWO charges 0.06% a year and SCHE charges 0.06%. Past returns do not tell you what comes next.

What if I had put $10,000 in VWO 10 years ago?#

It would have grown to about $20,496 by October 16, 2026, with dividends reinvested. That is about 7.4% a year. Past returns do not tell you what comes next.

Sources#