# VWO ETF: fees, returns, drawdowns and holdings

> What VWO holds, its 0.06% yearly fee, returns by year, its worst drop, and which Tactfolio strategies hold it. Updated daily.

Vanguard FTSE Emerging Markets ETF (VWO) is an exchange-traded fund (ETF) run by Vanguard. This fund owns shares in thousands of companies in emerging markets, which are countries whose economies are still growing, such as China, India, Taiwan, and Brazil. It charges 0.06% a year. From March 2005 to October 2026 it returned about 6.7% a year, and its worst drop was −67.7%.

Written by [the Tactfolio research team](https://tactfolio.com/about/editorial-policy). Fund facts checked October 16, 2026. Prices through October 16, 2026.

## Key points

- Expense ratio: 0.06% a year (about $6 on $10,000).
- Started trading on March 4, 2005.
- Last close: $58.03 on October 16, 2026.
- Return over the last year: 8.9%.
- Worst drop since 2005: −67.7%.
- 8 Tactfolio classic strategies hold it.

## How has VWO done since 2005?

From March 2005 to October 2026, VWO returned about 6.7% a year. The S&P 500 returned about 10.9% a year over the same dates. Say you put in $10,000 at the start. It would have been worth about $40,624 at the end, with every dividend reinvested.

| Period | VWO | S&P 500 (SPY) |
| --- | --- | --- |
| 1 month | −1.8% | 1.5% |
| 3 months | −1.2% | 1.9% |
| 6 months | 0.0% | 9.3% |
| Year to date | 8.3% | 12.8% |
| 1 year | 8.9% | 16.8% |
| 3 years, per year | 17.1% | 22.0% |
| 5 years, per year | 5.4% | 12.8% |
| 10 years, per year | 7.4% | 15.4% |
| Since 2005, per year | 6.7% | 10.9% |

Periods longer than a year show the return per year (CAGR). 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.

## VWO returns by month and year

VWO rose in 144 of its 260 months (55%). Its best month was May 2009, at 17.9%. Its worst was October 2008, at −27.3%.

| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Full year |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2026 (part) | 5.0% | 2.9% | −7.0% | 9.0% | 1.6% | −0.2% | −1.6% | 3.0% | −1.8% | −2.2% |  |  | 8.3% |
| 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% | 25.6% |
| 2024 | −3.5% | 3.5% | 1.9% | 1.0% | 2.2% | 2.0% | 1.2% | 1.0% | 7.3% | −2.7% | −2.1% | −1.0% | 10.6% |
| 2023 | 8.3% | −6.7% | 2.6% | −0.4% | −3.0% | 4.7% | 5.9% | −5.9% | −2.5% | −3.2% | 7.1% | 3.3% | 9.3% |
| 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% | −18.0% |
| 2021 | 3.1% | 1.6% | −0.7% | 1.8% | 1.7% | 1.3% | −5.9% | 2.2% | −3.4% | 1.3% | −2.9% | 1.5% | 1.3% |
| 2020 | −5.5% | −3.5% | −17.1% | 7.8% | 3.3% | 6.5% | 8.6% | 2.7% | −1.2% | 1.3% | 8.6% | 6.0% | 15.2% |
| 2019 | 9.7% | −0.4% | 2.3% | 2.1% | −6.4% | 5.4% | −1.8% | −3.3% | 0.9% | 4.0% | 0.5% | 7.1% | 20.8% |
| 2018 | 8.6% | −5.4% | −0.2% | −2.8% | −2.3% | −4.8% | 4.0% | −4.2% | −1.4% | −7.7% | 4.8% | −3.3% | −14.8% |
| 2017 | 5.8% | 2.3% | 2.8% | 1.6% | 1.0% | 0.9% | 5.3% | 3.0% | −0.5% | 2.4% | −0.3% | 3.7% | 31.5% |
| 2016 | −5.8% | −0.3% | 12.7% | 1.0% | −3.2% | 4.9% | 5.1% | 0.8% | 2.0% | 0.3% | −4.0% | −0.7% | 12.2% |
| 2015 | −0.2% | 4.7% | −2.1% | 7.4% | −3.5% | −2.5% | −6.3% | −9.9% | −2.9% | 5.3% | −2.3% | −3.4% | −15.8% |
| 2014 | −8.4% | 3.2% | 4.6% | 0.9% | 3.1% | 3.2% | 1.4% | 3.8% | −7.2% | 2.2% | −1.1% | −4.7% | 0.0% |
| 2013 | 0.1% | −2.4% | −1.3% | 2.0% | −5.1% | −5.3% | 0.7% | −3.4% | 7.3% | 4.3% | −0.9% | −0.3% | −4.9% |
| 2012 | 10.8% | 5.4% | −2.6% | −2.1% | −10.7% | 5.0% | 0.2% | 0.3% | 5.3% | −0.5% | 1.3% | 7.1% | 19.2% |
| 2011 | −3.5% | −0.2% | 5.5% | 3.4% | −2.9% | −1.0% | −0.6% | −9.1% | −18.4% | 15.9% | −1.7% | −4.2% | −18.8% |
| 2010 | −6.7% | 1.9% | 8.2% | −0.2% | −9.2% | −0.5% | 10.2% | −2.6% | 11.4% | 3.1% | −2.8% | 7.6% | 19.5% |
| 2009 | −8.9% | −2.4% | 12.4% | 17.4% | 17.9% | −2.5% | 10.9% | −0.7% | 10.0% | −2.4% | 7.2% | 3.1% | 76.3% |
| 2008 | −9.0% | 2.9% | −3.7% | 8.4% | 1.8% | −9.8% | −4.7% | −7.9% | −15.6% | −27.3% | −8.6% | 7.6% | −52.5% |
| 2007 | 0.1% | −2.3% | 4.3% | 3.8% | 6.7% | 4.5% | 3.5% | 0.0% | 9.8% | 13.0% | −8.5% | −0.9% | 37.3% |
| 2006 | 11.6% | −2.1% | 1.2% | 7.8% | −11.3% | −0.1% | 1.8% | 1.5% | 1.1% | 5.1% | 7.3% | 4.0% | 29.4% |
| 2005 (part) |  |  | −5.9% | −2.3% | 2.9% | 3.5% | 7.0% | 1.4% | 8.2% | −5.7% | 7.0% | 6.5% | 23.5% |

Each month runs from the last close of the month before. The first month counts from the first close.

## How risky is VWO compared with the S&P 500?

Measured from October 2021 to October 2026, on the days both traded.

- **Beta 0.70.** When the S&P 500 moved 1% in a day, VWO tended to move about 0.70%.
- **Correlation 0.69.** VWO moved with the S&P 500 some of the time.
- **Up and down months.** In months the S&P 500 rose, VWO rose 59% as much on average. In months it fell, VWO fell 69% as much.

| Measure | VWO | S&P 500 (SPY) |
| --- | --- | --- |
| Return per year | 5.4% | 12.8% |
| Volatility | 17.5% | 17.1% |
| Worst drop | −30.2% | −24.5% |
| Sharpe ratio | 0.39 | 0.79 |
| Sortino ratio | 0.57 | 1.15 |
| Calmar ratio | 0.18 | 0.52 |

Volatility is how much the price swings in a year. The Sharpe ratio is return per unit of volatility, the Sortino ratio counts only the falls, and the Calmar ratio is the return per year over the worst drop. Higher ratios mean more return for the risk taken.

## Is VWO above its 200-day average?

VWO closed 0.1% below its 200-day average on October 16, 2026. A rule that holds VWO only above that average would be out of it today.

- Its 50-day average is 3.3% above its 200-day average.
- It closed 5.4% below its highest close of the last 52 weeks.

A moving average is the average close over the last so many days. Trend rules such as [the 10-month moving average strategy](https://tactfolio.com/strategies/faber-10-month-moving-average.md) hold a fund only while it is above one. You can [build that rule for VWO](https://tactfolio.com/builder) and backtest it in a minute.

## What was VWO's worst drop?

A drawdown is how far a fund falls from its last high point. VWO's worst fall was −67.7%, from October 31, 2007 to November 20, 2008. It got back to that high on September 11, 2017. On October 16, 2026 it was 5.4% below its highest close.

| Drop | Started | Bottom | Back to the high | Fall took | Recovery took |
| --- | --- | --- | --- | --- | --- |
| −67.7% | Oct 31, 2007 | Nov 20, 2008 | Sep 11, 2017 | 13 months | 8.8 years |
| −36.4% | Jan 26, 2018 | Mar 23, 2020 | Nov 16, 2020 | 2.2 years | 8 months |
| −34.3% | Feb 17, 2021 | Oct 24, 2022 | Jun 26, 2025 | 20 months | 2.7 years |
| −26.0% | May 9, 2006 | Jun 13, 2006 | Dec 4, 2006 | 35 days | 6 months |
| −18.1% | Jul 23, 2007 | Aug 16, 2007 | Sep 21, 2007 | 24 days | 36 days |

Big drops are normal for some funds. They matter because selling during a drop locks in the loss.

## What does VWO hold?

This fund owns shares in thousands of companies in emerging markets, which are countries whose economies are still growing, such as China, India, Taiwan, and Brazil. Prices of these stocks can change a lot from year to year. The fund's value can also change when those countries' currencies go up or down against the dollar.

It tracks the FTSE Emerging Markets All Cap China A Inclusion Index. It had 6,507 holdings as of September 30, 2026, according to Vanguard.

| Fact | VWO |
| --- | --- |
| Full name | Vanguard FTSE Emerging Markets ETF |
| Issuer | Vanguard |
| Expense ratio | 0.06% a year |
| Started trading | March 4, 2005 |
| Tracks | FTSE Emerging Markets All Cap China A Inclusion Index |
| Type | Emerging market stocks, ETF |
| Holdings | 6,507 holdings as of September 30, 2026 |
| Facts checked | October 16, 2026 on the [Vanguard fund page](https://investor.vanguard.com/investment-products/etfs/profile/vwo) |

## What is the VWO expense ratio?

VWO charges 0.06% a year. An expense ratio is the yearly fee a fund takes to run itself. On $10,000, a 0.06% fee comes to about $6 a year. Of the 162 ETFs on Tactfolio, 72% charge more.

You never get a bill for it. The fund takes the fee out of its own value a little each day.

## Which Tactfolio strategies hold VWO?

8 classic strategies hold VWO at least some of the time. Each is a set of written rules you can open, test and copy.

- [Hybrid Asset Allocation (HAA)](https://tactfolio.com/strategies/hybrid-asset-allocation.md), by Wouter Keller and JW Keuning, 2023
- [Bold Asset Allocation (BAA)](https://tactfolio.com/strategies/bold-asset-allocation.md), by Wouter Keller, 2022
- [Defensive Asset Allocation (DAA)](https://tactfolio.com/strategies/defensive-asset-allocation.md), by Wouter Keller and JW Keuning, 2018
- [Bold Asset Allocation G4 (BAA aggressive)](https://tactfolio.com/strategies/bold-asset-allocation-g4.md), by Wouter Keller, 2022
- [Mama Bear Portfolio (Muscular Portfolios)](https://tactfolio.com/strategies/mama-bear-portfolio.md), by Brian Livingston, 2018
- [Papa Bear Portfolio (Muscular Portfolios)](https://tactfolio.com/strategies/papa-bear-portfolio.md), by Brian Livingston, 2018
- [Kipnis Defensive Adaptive Asset Allocation (KDA)](https://tactfolio.com/strategies/kipnis-defensive-asset-allocation.md), by Ilya Kipnis, 2019
- [Resilient Asset Allocation (Keller’s RAA)](https://tactfolio.com/strategies/resilient-asset-allocation.md), by Wouter J. Keller, 2020

## How does VWO compare with similar ETFs?

Funds that can stand in for VWO:

- [SCHE](https://tactfolio.com/etf/SCHE.md): Schwab Emerging Markets Equity ETF, 0.06% a year
- [IEMG](https://tactfolio.com/etf/IEMG.md): iShares Core MSCI Emerging Markets ETF, 0.09% a year
- [EEM](https://tactfolio.com/etf/EEM.md): iShares MSCI Emerging Markets ETF, 0.72% a year
- [VEU](https://tactfolio.com/etf/VEU.md): Vanguard FTSE All-World ex-US ETF, 0.04% a year

See [all 6 VWO alternatives](https://tactfolio.com/alternatives/VWO.md), compared on the same dates as VWO.

## Test VWO in your own rules

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](https://tactfolio.com/builder), add VWO, and see how a rule such as "hold it only above its 200-day average" would have done. Strategies run on daily prices and hold US stocks and ETFs only.

## The details

Prices come from Tactfolio's stored daily prices for VWO and SPY. Each close is adjusted for splits, and dividends are reinvested on the day the fund pays them out. CAGR is the steady yearly return that turns the starting value into the ending value. Volatility is the yearly standard deviation of daily returns. Beta and correlation compare daily returns with the S&P 500 over the same dates.

Fund facts come from Vanguard. We checked them on October 16, 2026. Read [what a backtest simulates](https://tactfolio.com/docs/backtests.md) and [how to read drawdown and CAGR](https://tactfolio.com/docs/concepts/reading-a-backtest.md) for more on these measures.

## Research and test it

- [What is an ETF](https://tactfolio.com/learn/what-is-an-etf): An ETF is a fund that trades like a stock. Learn how ETFs work, what they cost, the main types, and the risks, with SEC sources.
- [Momentum strategy](https://tactfolio.com/learn/momentum-strategy): A momentum strategy buys recent winners by a written rule.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.
- [Backtesting](https://tactfolio.com/backtesting): Free backtesting software for stocks, ETFs, and crypto perps.

## Common questions

### What is the expense ratio of VWO?

VWO charges 0.06% a year, according to Vanguard as of October 16, 2026. That is about $6 a year for every $10,000 you hold.

### When did VWO start trading?

VWO started trading on March 4, 2005. It is run by Vanguard.

### What does VWO track?

VWO tracks the FTSE Emerging Markets All Cap China A Inclusion Index. This fund owns shares in thousands of companies in emerging markets, which are countries whose economies are still growing, such as China, India, Taiwan, and Brazil.

### How much has VWO returned per year?

From March 2005 to October 2026, VWO returned about 6.7% a year with dividends reinvested. Its worst drop was −67.7%. Past returns do not tell you what it will do next.

### Is VWO above its 200-day moving average?

On October 16, 2026, VWO closed 0.1% below its 200-day moving average. This page updates after each US market close.

### Which strategies use VWO?

8 of Tactfolio's classic strategies hold VWO, including Hybrid Asset Allocation (HAA), Bold Asset Allocation (BAA), Defensive Asset Allocation (DAA).

## Sources

- [Vanguard: Vanguard FTSE Emerging Markets ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vwo)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.