At a glance
VWO charges 0.06% a year, below the 0.28% average of the 8 funds most like it (the cheapest of 9). It has $162.04B in assets, the largest of that group; it paid 2.65% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +3.3% with distributions reinvested (S&P 500: +11.5%), the weakest of those 9 funds; over three years it returned +16.8% a year. At its worst it fell 27.9% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 23 months after the low. Its ten largest positions make up 27.4% of the fund, out of 6,340 in all.
The short version
Vanguard FTSE Emerging Markets ETF (VWO) tracks the FTSE Emerging Markets All Cap China A Inclusion Index, holding thousands of stocks from Taiwan, India, China, Brazil and beyond. Its annual fee, or expense ratio, of 0.06% is the lowest among nine similar funds, which average 0.28%. The trade-offs: Taiwan Semiconductor was 15.6% of assets as of July 31, 2026, and returns trailed most peers over one and three years to October 27, 2026.
Price history
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VWO +3.3% over the year to Oct 30, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| VWO official prospectus, to Dec 31, 2025 | — | +24.83% | — | +4.69% | +8.16% | — |
| VWO price data to Oct 30, 2026 | +4.1% | +3.3% | +16.8% | +5.0% | — | +8.8% |
- Over the year to Oct 30, 2026, VWO returned +3.3%, 9th of 9 among similar funds.
- Its 5-year annualized return was +5.0%.
- Its worst full calendar year was 2022 (-18.0%); its best was 2025 (+25.6%).
- The deepest fall in its price history was 34.3% (Feb 17, 2021 to Oct 24, 2022), recovered by Jun 26, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +4.1% | — |
| 2025 | +25.6% | +24.83% |
| 2024 | +10.6% | +11.01% |
| 2023 | +9.3% | +9.27% |
| 2022 | -18.0% | -17.72% |
| 2021 | +1.3% | +0.96% |
| 2020 | — | +15.32% |
| 2019 | — | +20.40% |
| 2018 | — | -14.57% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Not in the price data, which starts Jun 2, 2020 |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Jun 2, 2020 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 25.9% over that stretch · deepest drop along the way 27.9%, back to its old high 23.4 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.4424 | |
| 2025 | $1.5000 | +6.4% |
| 2024 | $1.4100 | -2.8% |
| 2023 | $1.4500 | -9.4% |
| 2022 | $1.6000 | +23.1% |
| 2021 | $1.3000 |
What's inside
As of Jul 31, 2026, the fund held 6,340 securities; the ten largest made up 27.44% of assets. It also reported 4.14% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.
| Holding | Weight | |
|---|---|---|
| Taiwan Semiconductor Manufacturing Co Ltd | 15.56% | |
| Tencent Holdings Ltd | 3.31% | |
| Alibaba Group Holding Ltd | 2.41% | |
| MediaTek Inc | 1.36% | |
| China Construction Bank Corp | 0.90% | |
| Delta Electronics Inc | 0.82% | |
| Hon Hai Precision Industry Co Ltd | 0.81% | |
| Reliance Industries Ltd | 0.80% | |
| HDFC Bank Ltd | 0.78% | |
| ICICI Bank Ltd | 0.69% | |
| Industrial & Commercial Bank of China Ltd | 0.66% | |
| PDD Holdings Inc | 0.59% | |
| Meituan | 0.56% | |
| Xiaomi Corp | 0.55% | |
| Bharti Airtel Ltd | 0.55% |
By country
Taiwan 30.46%Hong Kong 19.94%India 16.87%China 6.35%Brazil 4.25%By asset type
Stocks 97.86%Preferred stock 1.29%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $2.22B (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.98%, -0.07%, -1.80%.
How it works
VWO is the exchange-traded share class of Vanguard Emerging Markets Stock Index Fund. It aims to track the FTSE Emerging Markets All Cap China A Inclusion Index, which covers stocks of companies in emerging markets worldwide. The index weights companies by market capitalization (total stock market value), so the biggest count most. That is why Taiwan Semiconductor was about 15.6% of the fund as of July 31, 2026, ahead of Tencent at 3.3% and Alibaba at 2.4%.
Rather than buying every index stock, the fund uses sampling: it holds a range of stocks that together approximate the index's key risk factors and characteristics, with at least 80% of net assets in index stocks. The July 31, 2026 holdings report listed 6,340 holdings, plus 50 small derivative contracts tied to single stocks and currencies, netting about -0.05% of assets. Turnover, roughly the share of holdings replaced in a year, was a low 6%.
By following the index, the fund could become nondiversified under the Investment Company Act of 1940 after an index rebalance or market moves, letting a few companies make up a larger share. It could also concentrate in one industry if the index does. Shares trade on NYSE Arca at market prices, which can differ from the value of the fund's holdings.
What it really costs
- VWO charges 0.06% a year, versus an average of 0.28% for the similar funds below (1st of 9, cheapest first).
- Of that, 0.02% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $6 in the first year and $77 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| VWO | $6 | $19 | $34 | $77 |
In a retirement portfolio
It spreads money across thousands of stocks in Taiwan, India, China, Brazil and other emerging markets for a 0.06% expense ratio, though its swings are those of a stock fund.
VWO could add thousands of companies most US-focused portfolios lack, but its drops have been deep. Comparable figures for 2008 aren't available. In the 2020 crash it lost 24.55% in the first quarter, yet ended the year up 15.32%. In the 2022 bear market it fell 27.9% and took about 23 months to recover; 2022, down 17.72%, was its worst calendar year from 2018 through 2025. Its deepest drop, 34.3% from February 2021 to October 2022, took about 32 months to recover. Selling shares for spending during such stretches locks in losses.
Income is modest: a 2.59% yield over the 12 months to October 27, 2026, paid quarterly. At 0.06% a year, costs are low; the SEC's standard example puts expenses on $10,000 at $77 over 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors seeking broad emerging markets stock exposure at a 0.06% expense ratio, the lowest of nine similar funds, which average 0.28%.
- Long-term holders able to sit through drops like the 34.3% fall from February 2021 to October 2022, then about 32 months to recover.
- Investors building a global portfolio who want one fund spanning Taiwan, India, China, Brazil and more (6,340 holdings as of July 31, 2026).
Look elsewhere if
- Investors uneasy with concentration: Taiwan Semiconductor was about 15.6% of assets, and Taiwan 30.5%, as of July 31, 2026.
- Investors wanting to limit China exposure through holdings like Tencent and Alibaba; iShares MSCI Emerging Markets ex China ETF (EMXC) is worth comparing.
- Retirees seeking sizable income: the trailing yield was 2.59% as of October 27, 2026, paid quarterly, and payouts can vary.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| VWO this fund | — | 0.06% | $162.04B | +3.3% | +16.8% |
| SCHE Schwab Emerging Markets Equity ETF | 76% | 0.11% | $13.00B | +4.4% | +16.7% |
| EEM iShares MSCI Emerging Markets ETF | 67% | 0.72% | $31.21B | +12.7% | +20.3% |
| SPEM SPDR Portfolio Emerging Markets ETF | 61% | 0.07% | $17.31B | +5.0% | +16.8% |
| IEMG iShares Core MSCI Emerging Markets ETF | 61% | 0.09% | $160.90B | +11.7% | +19.8% |
| EMXC iShares MSCI Emerging Markets ex China ETF | 55% | 0.25% | $24.92B | +27.3% | +24.6% |
| XSOE WisdomTree Emerging Markets ex-State-Owned … | 49% | 0.32% | $2.19B | +12.5% | +21.5% |
| ESGE iShares ESG Aware MSCI EM ETF | 46% | 0.26% | $6.91B | +15.2% | +23.2% |
Questions investors ask
Does VWO pay dividends?
Yes. VWO pays dividends quarterly. Over the 12 months to October 27, 2026, it paid $1.4724 per share, a trailing yield of 2.59%. A trailing yield is the past year's payouts divided by the share price; future payments can be higher or lower. The dividends come from the fund's roughly 6,340 holdings as of July 31, 2026, so they can shift with company profits and currency moves.
What are VWO's top holdings?
Taiwan Semiconductor Manufacturing (TSMC) was by far the largest holding, at about 15.6% of assets as of July 31, 2026. Next came Tencent (3.3%), Alibaba (2.4%), MediaTek (1.4%) and China Construction Bank (0.9%). The top 10 made up 27.4% of the fund. By country, Taiwan led at 30.5%, followed by Hong Kong at 19.9%, India at 16.9%, mainland China at 6.4%, Brazil at 4.3% and South Africa at 3.7%.
What's the difference between VWO and IEMG?
Both are broad, low-cost emerging markets index funds, but they follow different indexes. VWO tracks a FTSE index and charges 0.06% a year; iShares Core MSCI Emerging Markets ETF (IEMG) follows an MSCI index and charges 0.09%. Their holdings overlapped by about 61% in the latest regulatory filings. IEMG returned 22.1% a year over the three years to October 27, 2026, versus 18% for VWO. The closest match by holdings is Schwab's SCHE, with 76% overlap and a 0.11% expense ratio.
What is VWO's 10-year return?
VWO returned an average of 8.16% a year over the 10 years ended December 31, 2025, according to its prospectus filed February 27, 2026. The five-year average was lower, at 4.69% a year, while the fund gained 24.83% in 2025 alone. Calendar years swung widely, from a 17.72% loss in 2022 to a 20.4% gain in 2019. Over the 12 months to October 27, 2026, it returned 4.9%.
Is VWO risky?
Yes. Its prospectus says emerging markets carry higher risk and volatility (bigger price swings) than developed markets, citing currency moves, less developed legal and accounting systems, and political and China-specific risks. VWO's deepest drop since June 2020 was 34.3%, from February 17, 2021 to October 24, 2022, and it didn't regain that peak until June 26, 2025. Its worst quarter shown in the prospectus was a 24.55% fall in early 2020.