At a glance
VWOB charges 0.15% a year, below the 0.33% average of the 7 funds most like it (the cheapest of 8). It has $6.68B in assets, the 2nd largest of that group; it paid 6.11% of its price in distributions over the past 12 months, monthly. Over the past year it returned −0.8% with distributions reinvested, 7th of those 8 funds; over three years it returned +9.7% a year. At its worst it fell 25.3% in the 2020 crash (S&P 500: 33.7%) and 23.7% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 6 months and 24 months after the lows. Its ten largest positions make up 5.9% of the fund, out of 931 in all.
The short version
Vanguard Emerging Markets Government Bond ETF (VWOB) tracks a Bloomberg index of U.S. dollar-denominated bonds issued by emerging market governments and government-related borrowers, including lower-rated "high-yield" debt. Its 0.15% expense ratio was the lowest among eight similar funds, whose average was 0.33%. It pays income monthly, with a trailing 12-month yield of 6.11% as of October 27, 2026.
Price history
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VWOB -0.8% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| VWOB official prospectus, to Dec 31, 2025 | — | +13.02% | — | +1.51% | +4.18% | — |
| VWOB price data to Oct 27, 2026 | -1.1% | -0.8% | +9.7% | +1.6% | +2.8% | +3.3% |
- Over the year to Oct 27, 2026, VWOB returned -0.8%, 7th of 8 among similar funds.
- Its 5-year annualized return was +1.6% and its 10-year +2.8%.
- In the 2020 COVID crash it fell 25.3% and regained its old high 5.5 months after the low.
- Its worst full calendar year was 2022 (-17.4%); its best was 2019 (+14.5%).
- The deepest fall in its price history was 27% (Sep 2, 2021 to Oct 20, 2022), recovered by Jul 1, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -1.1% | — |
| 2025 | +13.5% | +13.02% |
| 2024 | +5.2% | +5.71% |
| 2023 | +10.7% | +10.46% |
| 2022 | -17.4% | -16.70% |
| 2021 | -1.8% | -1.93% |
| 2020 | +5.7% | +5.82% |
| 2019 | +14.5% | +13.97% |
| 2018 | -2.9% | -2.79% |
| 2017 | +8.4% | — |
| 2016 | +9.9% | — |
| 2015 | +1.6% | — |
| 2014 | +4.2% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 20.8% over that stretch · deepest drop along the way 25.3%, back to its old high 5.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 23.1% over that stretch · deepest drop along the way 23.7%, back to its old high 23.8 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $2.9400 | |
| 2025 | $4.0000 | +3.6% |
| 2024 | $3.8600 | +10.3% |
| 2023 | $3.5000 | +8.0% |
| 2022 | $3.2400 | +3.8% |
| 2021 | $3.1200 | -9.3% |
| 2020 | $3.4400 | -7.8% |
| 2019 | $3.7300 | +10.4% |
| 2018 | $3.3800 | -8.5% |
| 2017 | $3.6940 | +1.1% |
| 2016 | $3.6540 | +0.2% |
| 2015 | $3.6460 | +6.5% |
| 2014 | $3.4250 |
What's inside
As of Jul 31, 2026, the fund held 931 securities; the ten largest made up 5.86% of assets.
| Holding | Weight | |
|---|---|---|
| Argentine Republic Government International Bond Bonds and notes | 1.20% | |
| Argentine Republic Government International Bond Bonds and notes | 0.71% | |
| Argentine Republic Government International Bond Bonds and notes | 0.67% | |
| Argentine Republic Government International Bond Bonds and notes | 0.58% | |
| Petroleos Mexicanos Bonds and notes | 0.55% | |
| Petroleos Mexicanos Bonds and notes | 0.51% | |
| Eagle Funding Luxco Sarl Bonds and notes | 0.47% | |
| Eagle Funding Luxco Sarl Bonds and notes | 0.41% | |
| Qatar Government International Bond Bonds and notes | 0.38% | |
| Qatar Government International Bond Bonds and notes | 0.38% | |
| Saudi Government International Bond Bonds and notes | 0.38% | |
| Saudi Government International Bond Bonds and notes | 0.38% | |
| Ecuador Government International Bond Bonds and notes | 0.37% | |
| Saudi Government International Bond Bonds and notes | 0.36% | |
| Mexico Government International Bond Bonds and notes | 0.35% |
By country
Mexico 9.72%Saudi Arabia 8.02%Cayman Islands 6.18%Turkey 6.1%Indonesia 5.45%By issuer
Foreign governments 84.9%Companies 12.7%US Treasury 0.06%The bonds mature in 11.2 years on average (weighted by size), with an average coupon of 5.51%.
Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors added a net $306.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.88%, +0.69%, -1.73%.
How it works
VWOB is an index fund. It tries to match the Bloomberg USD Emerging Markets Government RIC Capped Index. That index holds bonds issued in U.S. dollars by emerging market governments and government-related issuers, with more than one year left until they mature. Both investment-grade and high-yield bonds can qualify. High-yield bonds are lower-rated bonds from borrowers seen as more likely to miss payments. The index caps how much weight any one issuer can have so the fund meets federal tax rules for mutual funds and ETFs.
The fund doesn't buy every bond in the index. It uses sampling, which means it holds a smaller set of bonds that, taken together, closely match the index's risks and other traits. It must keep at least 80% of its net assets in index bonds. As of July 31, 2026, it held 931 issues, and the 10 largest made up only 5.86% of assets. The biggest positions were four Argentina government bonds, followed by Petroleos Mexicanos (Pemex) debt. Foreign governments made up 84.9% of assets and companies 12.7%. Portfolio turnover was 27%.
Two mechanical points are worth knowing. Because the bonds are in dollars, foreign exchange rates don't move the fund's value directly. Interest rates do, though. Its average maturity of 11.2 years makes its price sensitive to rate changes. The fund is also "nondiversified," which means it can put more of its assets in a single issuer than a diversified fund can.
What it really costs
- VWOB charges 0.15% a year, versus an average of 0.33% for the similar funds below (1st of 8, cheapest first).
- Of that, 0.13% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $15 in the first year and $192 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| VWOB | $15 | $48 | $85 | $192 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
It offers high monthly income, but in past stock market selloffs it fell about as hard as stocks, so it fits better as a small side position than as a core bond holding.
VWOB could add income and exposure to emerging market issuers. Its trailing 12-month yield was 6.11% as of October 27, 2026, paid monthly, and its expense ratio is 0.15%. The catch is how it behaved under stress. It launched in 2013, so it has no record from 2008. In the 2020 COVID crash, it fell 25.3% between March 4 and March 18 and recovered by September 2020. In 2022 it lost 16.7%, its worst calendar year. Its deepest drop was 27%, from September 2021 to October 2022, and it didn't recover until July 2025, about 32 months later. Anyone who sold shares for income during that stretch would have locked in losses. The prospectus warns that emerging market bonds are less likely than U.S. bonds to cushion a stock-heavy portfolio. Past results don't predict future returns, 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 monthly income from dollar-denominated emerging market government bonds, with a trailing 12-month yield of 6.11% as of October 27, 2026.
- Cost-conscious investors: its 0.15% expense ratio was the lowest among eight similar funds, compared with 0.39% for iShares' EMB.
- Long-term holders who can wait out multi-year slumps, like the 27% drop from 2021 to 2022 that took about 32 months to recover.
Look elsewhere if
- Retirees who want a bond fund that holds steady when stocks fall. It dropped 25.3% in March 2020 and lost 16.7% in 2022.
- Investors uneasy with credit risk. The index includes high-yield bonds, and its largest positions as of July 31, 2026 were Argentina government bonds.
- Investors who want emerging market currency exposure. Local-currency funds such as EBND or LEMB provide that; this dollar-bond fund does not.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| VWOB this fund | 11.2 yrs | 0.15% | $6.68B | -0.8% | +9.7% |
| EMHC SPDR Bloomberg Emerging Markets USD Bond ETF | 11.2 yrs | 0.23% | $271.8M | -0.6% | +9.2% |
| GEMD Goldman Sachs Access Emerging Markets USD B… | 11.2 yrs | 0.3% | $35.5M | -0.8% | +8.9% |
| EMB iShares J.P. Morgan USD Emerging Markets Bo… | 11 yrs | 0.39% | $14.61B | 0.0% | +9.0% |
| JPMB JPMorgan USD Emerging Markets Sovereign Bon… | 10.9 yrs | 0.39% | $95.1M | -0.4% | +8.5% |
| EMBD Global X Emerging Markets Bond ETF | 9.2 yrs | 0.39% | $248.4M | +0.3% | +9.8% |
| EBND SPDR Bloomberg Emerging Markets Local Bond … | 8.8 yrs | 0.3% | $2.26B | +2.1% | +7.7% |
| LEMB iShares J.P. Morgan EM Local Currency Bond … | 7.5 yrs | 0.3% | $715.4M | +3.8% | +8.3% |
Questions investors ask
Does VWOB pay monthly dividends?
Yes. VWOB pays income every month. Over the 12 months through October 27, 2026, it paid about $3.90 per share, a trailing yield of 6.11%. That income comes from interest on the emerging market government bonds it holds. The amount can change. The prospectus notes that when interest rates fall, the fund's income may drop as older bonds mature or are called and the money is reinvested at lower rates.
What's the difference between VWOB and EMB?
Both hold U.S. dollar emerging market bonds with similar average maturities: 11.2 years for VWOB and 11 years for EMB. The main differences are cost, index and size. VWOB charges 0.15% a year, compared with 0.39% for EMB. VWOB tracks a Bloomberg index, and EMB follows a J.P. Morgan index. EMB is larger, with $14.6 billion in net assets, compared with $6.68 billion across all of VWOB's share classes, both as of July 31, 2026.
Is VWOB safe for retirees?
Not in the way a high-quality U.S. bond fund might be. VWOB fell 25.3% in two weeks in March 2020 and lost 16.7% in 2022. Its deepest drop, 27%, took about 32 months to recover, ending in July 2025. As of December 31, 2025, its average annual returns were 1.51% over five years and 4.18% over ten. Some retirees hold it as a smaller, higher-income position alongside steadier bonds.
How much does VWOB cost?
VWOB's expense ratio is 0.15% a year, according to its prospectus filed February 27, 2026. That includes a 0.13% management fee. The SEC's standard example assumes $10,000 invested with a 5% annual return. On that basis, the fund would cost about $15 after one year, $48 after three, $85 after five and $192 after ten. The average expense ratio among similar emerging market bond ETFs was 0.33%.
What countries does VWOB invest in?
VWOB invests across many emerging market countries. As of July 31, 2026, the largest were Mexico (9.72%), Saudi Arabia (8.02%), the Cayman Islands (6.18%), Turkey (6.1%), Indonesia (5.45%) and the United Arab Emirates (4.71%). Cayman Islands bonds are usually issued by entities registered there on behalf of borrowers elsewhere. The largest single positions were Argentina government bonds. Holdings are spread across 931 issues.