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 measured 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 12/19/2014)

  • 1 Month

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  • 1 Year

  • 3 Years

  • 5 Years

  • Max

Performance [as of 12/18/14]
1 Month
3 Month
YTD
1 Year
3 Years
5 Years
10 Years

VWO
-5.57% -9.96% -1.84% -0.80% 4.27% 2.24% --

VWO (NAV)
-5.18% -10.08% -1.04% -0.56% 4.36% 2.30% --

FTSE Emerging Markets Net TR US RIC
-5.53% -10.56% -1.35% -0.34% 4.22% 2.44% 8.78%
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

Issuer Vanguard

A company that produces and manages ETFs.

Inception Date 03/04/05

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

Legal Structure Open-Ended Fund

The organizational structure of the fund or ETN.

Expense Ratio 0.15%

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

Assets Under Management $45.11 B

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

Average Daily $ Volume $534.13 M

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

(%) | 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." href="javascript:void(0)" class="term">Average Spread (%) 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

Weighted Average Market Cap $40.42 B

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

Price / Earnings Ratio 12.76

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

Price / Book Ratio 1.56

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

Distribution Yield 3.00%

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

Next Ex-Dividend Date --

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

Number of Holdings 899

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

Index Tracked FTSE Emerging Markets
Net TR US RIC

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

Index Weighting Methodology Market Cap

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

Index Selection Methodology Market Cap

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

Segment 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.

Related ETFs to VWO

Top Competing ETFs 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 $44B in AUM. (Insight updated 12/19/2014)


Total Return - 12/18/2014

  • 1 Month

  • 3 Months

  • YTD

  • 1 Year

  • 3 Years

  • 5 Years

  • Max

Performance [as of 12/18/14]
1 Month
3 Month
YTD
1 Year
3 Years
5 Years
10 Years

VWO
-5.57% -9.96% -1.84% -0.80% 4.27% 2.24% --

VWO (NAV)
-5.18% -10.08% -1.04% -0.56% 4.36% 2.30% --

FTSE Emerging Markets Net TR US RIC
-5.53% -10.56% -1.35% -0.34% 4.22% 2.44% 8.78%

MSCI Emerging Markets Investable Market Index
-5.31% -11.19% -4.16% -3.10% 4.08% 2.28% --
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

VWO Portfolio Management

Expense Ratio 0.15%

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

(12 Mo) | 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." href="javascript:void(0)" class="term">Median Tracking Difference (12 Mo) -0.19%

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.

VWO Tax Exposures

Max LT/ST Capital Gains Rate 20.00% / 39.60%

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

Tax on Distributions Qualified dividends

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

Distributes K1 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

Legal Structure Open-Ended Fund

The organizational structure of the fund or ETN.

OTC Derivative Use No

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

Securities Lending Active Yes

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

ETN Counterparty N/A

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

ETN Counterparty Risk N/A

The risk of default by the ETN counterparty.

Fund Closure Risk Low

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

Portfolio Disclosure 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. Its creation fee (for those trading at a huge scale) looks high, but works out to a reasonable 12 bps. (Insight updated 12/19/2014)

Average Spread

Premium/Discount

Volume

VWO ETF.com/ Block LiquidityAs of 12/19/2014

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

Avg. Daily Share Volume 13,066,408

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

Average Daily $ Volume $534.13 M

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

Median Daily Share Volume 11,078,163

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

(%) | 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." href="javascript:void(0)" class="term">Average Spread (%) 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.

($) | The difference between the highest and lowest posted prices for an ETF, averaged over the past 45 days, in dollars." href="javascript:void(0)" class="term">Average Spread ($) $0.01

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

(12 Mo) | 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." href="javascript:void(0)" class="term">Max. Premium / Discount (12 Mo) 1.34% / -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.

Impediment to Creations 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.

Market Hours Overlap 28.47%

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

(Shares) | 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." href="javascript:void(0)" class="term">Creation Unit Size (Shares) 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.

(45 Day Average) | 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." href="javascript:void(0)" class="term">Creation Unit/Day (45 Day Average) 55.39

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.

(%) | The standard fee to create or redeem 1 creation unit of an ETF as a percentage of the dollar value of 1 creation unit." href="javascript:void(0)" class="term">Creation Unit Cost (%) 0.12%

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

Underlying Volume / Unit 0.66%

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.

Open Interest on ETF Options 125,185

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

ETF.com Implied Liquidity 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 12/19/2014)

VWO Geographic ExposureView All

Countries VWO Segment Benchmark
China 13.85% 16.24%

India 7.79% 11.73%

Brazil 8.97% 11.28%

South Africa 7.93% 9.50%

Hong Kong 6.84% 6.23%

Mexico 4.90% 5.77%

Malaysia 3.77% 4.55%

Russian Federation 3.64% 4.44%

Other 28.95% 16.1%

Regions VWO Segment Benchmark
Asia-Pacific 67.51% 60.73%

Latin America 16.22% 19.66%

Middle East & Africa 8.48% 10.59%

Europe 7.65% 9.02%

North America 0.14% --

Developed /
Emerging Split
35.47% / 64.53% 20.76% / 79.24%

VWO Performance Statistics

Beta 1.05

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.

Up Beta 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.

Down Beta 1.05

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.

Downside Standard Deviation 0.14%

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.

Segment 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
899 Holdings
Segment Benchmark
2573 Constituents
Shared Holdings
745 (Count)
 
72.13% (Weight)
VWOSegment Benchmark
Market Cap | The average market capitalization of the firms in the portfolio based on each firm’s weighting in the portfolio." href="javascript:void(0)" class="term">Weighted Average
Market Cap
$39.94 B$40.42 B

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

Size Split

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

Large (>12.9B)53%58%
Mid (>2.7B)30%36%
Small (>600M)13%6%
Micro (<600M)4%0%
Price / Book Ratio1.131.56

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

Dividend Yield2.41%2.68%

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

Holdings | 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." href="javascript:void(0)" class="term">Number Of
Holdings
2573899

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.

ConcentrationLowLow

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