VWO Fund Description

The Vanguard FTSE Emerging Markets fund tracks a market-cap-weighted index of emerging markets stocks, excluding South Korea.

VWO ETF.com Insight

Indexers disagree. Is South Korea developed or emerging? VWO changed its stance by divesting itself of South Korean stocks over the first part of 2013 in a well-publicized move. The fundExposures matter more than costs for VWO charges a very low fee and is extremely large and liquid, so it's a very strong choice for those who don’t want South Korea in their Emerging Markets ETF. From an exposure standpoint, VWO’s South Korea switch means that it now competes head to head with SCHE rather than EEM. VWO and SCHE track the same index and charge similar low fees but VWO holds the clear edge in Tradability with greater volume and tighter spreads. Still, for all but the shortest time horizons, cost differences measures in bps will pale next to performance differences driven by the exposures. This means that EM investors must first answer the Korea question for themselves before picking an ETF. (Insight updated 08/19/2014)

  • 1 Month
  • 3 Months
  • YTD
  • 1 Year
  • 3 Years
  • 5 Years
  • Max
Performance [as of 10/20/14] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years
VWO -5.38% -5.94% 2.39% -0.34% 5.64% 2.84% --
VWO (NAV) -5.79% -6.02% 3.09% -0.85% 5.54% 2.85% --
FTSE Emerging Markets Net TR US RIC -- -- -- -- -- -- --
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

VWO Top 10 Countries View All

VWO Top 10 Sectors

VWO Top 10 Holdings View All

VWO Summary Data

Vanguard

A company that produces and manages ETFs.

03/04/05

The first date of a fund's operations, as documented by the issuer.

Open-Ended Fund

The organizational structure of the fund or ETN.

0.15%

The net total annual fee a fund holder pays to the issuer.

$46.29 B

The market value of total assets that a fund has accumulated and now manages on behalf of investors.

$525.3 M

It is the daily dollar value of shares traded, averaged over the past 45 trading days.

0.02%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 45 days, as a percent.

VWO Portfolio Data

$39.74 B

Describes the average of each stock's market cap (share price x shares outstanding) scaled by its weight in the portfolio.

12.69

Weighted average ratio of prices of a fund’s stocks to trailing earnings of underlying stocks.

1.57

Weighted average ratio of prices of a fund’s stocks to the book value of underlying equity.

2.88%

The ratio of distributions paid by the fund over the past 12 months, divided by the fund’s NAV.

--

The date on which a security's price excludes an upcoming dividend.

871

The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper.

VWO Index Data

FTSE Emerging Markets
Net TR US RIC

This is the benchmark an ETF is desigend to track or replicate.

Market Cap

A set of rules that the underlying index provider follows to weight its constituent securities.

Market Cap

A set of rules that the underlying index provider follows to select its constituent securities.

MSCI Emerging Markets
Investable Market Index

This is the index that we have chosen as the best-in-class gauge for each segment's broad market.

Related ETFs to VWO

EEM, SCHE, GMM, DBEM

ETFs from within the same segment or closely related segments with similar investment objectives or market exposures.

VWO ETF.com Efficiency Insight

VWO charges just 15 bps, one of the lowest fees in the segment. The fund made a material switch to the index it tracked in 2013—removing South Korea—which required briefly tracking a separate transition index to smooth out the change. It completed the transition in June 2013. Poor holdings transparency nicks its score but the fund is stable with a massive $50B in AUM. (Insight updated 08/19/2014)

Total Return - 10/17/2014
  • 1 Month
  • 3 Months
  • YTD
  • 1 Year
  • 3 Years
  • 5 Years
  • Max
Performance [as of 10/20/14] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years
VWO -5.38% -5.94% 2.39% -0.34% 5.64% 2.84% --
VWO (NAV) -5.79% -6.02% 3.09% -0.85% 5.54% 2.85% --
FTSE Emerging Markets Net TR US RIC -- -- -- -- -- -- --
MSCI Emerging Markets Investable Market Index -6.74% -7.03% 0.54% -2.95% 5.52% 2.89% --
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

VWO Portfolio Management

0.15%

The net annual fee a fund holder pays to the issuer.

-0.20%

Compares returns of the fund's NAV to its underlying index for a daily series of overlapping 12 month periods. The median is the middle value of the results.

0.08%

Largest deviation in a positive direction of a fund's returns vs. its underlying index over the past 12 months.

-0.47%

Largest deviation in a negative direction of a fund's returns vs. its underlying index over the past 12 months.

VWO Tax Exposures

20.00% / 39.60%

The maximum long-term and short-term U.S. tax rates applicable to a realized capital gain.

0.00%

The average capital gains paid out to shareholders in the past 36 months, measured as a percent of net asset value (NAV) at the time.

Qualified dividends

IRS treatment of the majority of the fund's distributions.

No

ETFs that are structured as commodities pools and classified as limited partnerships by the IRS will issue K-1 forms to holders.

VWO Fund Structure

Open-Ended Fund

The organizational structure of the fund or ETN.

No

An indicator of whether a fund uses over-the-counter derivatives such as swaps or forwards to achieve its objectives.

Yes

An indicator of whether or not a fund actively lends its portfolio holdings.

100% / 0%

The division of securities lending revenue between the fund and the issuer.

N/A

The institution responsible for providing the return of the stated index and whose credit is the sole backing of the ETN.

N/A

The risk of default by the ETN counterparty.

Low

The likelihood that an issuer will shut down a fund for business or regulatory reasons.

Monthly

The frequency of an issuer's disclosure of all fund holdings.

VWO ETF.com Tradability Insight

VWO is among the most liquid and cheapest-to-trade funds in the segment, second only to arch rival EEM. Still, investors of all shapes and sizes can trade VWO with ease, even the most active traders. Retail investors can enjoy 2 bp spreads. The $9,300 creation fee (for those trading at a huge scale) looks high, but works out to a reasonable 10 bps. (Insight updated 08/19/2014)



Average Spread
Premium/Discount
Volume

VWO ETF.com/ Block LiquidityAs of 10/21/2014

5
4
3
2
1

This measurement shows how easy it is to trade 25,000 shares of VWO. VWO is rated a 5 out of 5.

VWO Tradability

12,138,948

It is the daily number of shares traded, averaged over the past 45 trading days.

$525.3 M

It is the daily dollar value of shares traded, averaged over the past 45 trading days.

10,642,981

Median number of shares traded over the past 45 trading days.

$447.54 M

Median dollar value of shares traded over the past 45 trading days.

0.02%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 45 days, as a percent.

$0.01

The difference between the highest and lowest posted prices for an ETF, averaged over the past 45 days, in dollars.

0.00%

The middle value in the ranked set of all premium/discount values over a maximum 12-month period.

1.00% / -1.35%

The greatest amount that the market price exceeded (premium) and fell below (discount) its fair value/net asset value (NAV) over a maximum 12-month period.

None

This flags whether there is currently a systemic issue that has restricted the ability to create or redeem shares of the fund. This may be imposed by the fund's issuer, or by external circumstances.

28.47%

The percent of time that the underlying securities of an ETF are open to trading while US exchanges are open.

200,000

The smallest block of ETF shares that an Authorized Participant can either create or redeem at net asset value (NAV) with the issuer in exchange for the underlying shares of the fund.

53.21

The median 45 day share volume divided by the creation unit size of the fund. The higher the number, the more likely that liquidity providers will trade the fund in size, or in odd lots.

0.11%

The standard fee to create or redeem 1 creation unit of an ETF as a percentage of the dollar value of 1 creation unit.

0.51%

This metric serves as a way of understanding the impact of executing 1 creation unit worth of an ETF in terms of the volume of its underlying components.

327,709

The total number of net outstanding options contracts for an ETF.

$41.15

The total market value of the assets that an ETF holds less fund expenses.

5

An estimate of liquidity for the underlying baskets of securities, scaled 1 to 5.

VWO ETF.com Fit Insight

VWO has no exposure to South Korea, so it has more space for China, Brazil, India and the rest of the emerging nations than our benchmark does. Without firms like Samsung, VWO has plenty of room for typical emerging-nation industries like big banks and oil companies. These allocations push VWO's dividend yield up compared to our benchmark. VWO's index excludes micro-caps and underweights small-caps, counterbalancing the missing tech behemoths to produce a marketlike weighted average market cap. (Insight updated 08/19/2014)

VWO Geographic ExposureView All

VWO Segment Benchmark
13.19% 15.58%

9.59% 12.00%

7.22% 11.30%

7.51% 9.28%

5.16% 6.10%

6.63% 6.07%

4.19% 5.19%

4.15% 5.00%

28.99% 15.55%

VWO Segment Benchmark
66.66% 59.54%

17.25% 20.96%

8.06% 10.36%

7.90% 9.14%

0.13% --

35.65% / 64.35% 20.29% / 79.71%

VWO Performance Statistics

0.96

The degree to which the fund and its segment benchmark move up and down in unison.

1.04

The sensitivity of the returns of the fund to the movement of the ETF.com segment benchmark. Beta of 1.0 means magnitude of fund returns equals that of IU benchmark returns.

1.06

The comparison of a fund's return to our benchmark's for days when the benchmark is up. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

0.98

The comparison of a fund's return to our benchmark's for days when the benchmark is down. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

0.13%

A measure of the variability between the fund's returns and the ETF.com segment benchmark returns on days when the fund underperforms the benchmark.

MSCI Emerging Markets
Investable Market Index

This is the index that we have chosen as the best-in-class gauge for each segment's broad market.

VWO Benchmark Comparison

VWO
871 Holdings
Segment Benchmark
2568 Constituents
Shared Holdings
724 (Count)
 
71.39% (Weight)
VWOSegment Benchmark
$38.06 B$39.74 B

The average market capitalization of the firms in the portfolio based on each firm’s weighting in the portfolio.

The breakdown of the portfolio’s holdings into each market capitalization bucket based on each firm’s weighting in the portfolio.

52%59%
31%35%
13%6%
4%0%
12.9112.69

Weighted average ratio of prices of a fund’s stocks to trailing earnings of underlying stocks.

1.421.57

Weighted average ratio of prices of a fund’s stocks to the book value of underlying equity.

2.41%2.72%

The weighted average of the current yield on the portfolio’s holdings.

2568871

The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper.

LowLow

The level of return contribution attributable to the average portfolio constituent.