Vanguard FTSE Emerging Markets (VWO): Historical Returns

Data Source: from January 1995 to May 2023 (~28 years)
Consolidated Returns as of 31 May 2023
Category: Stocks
ETF: Vanguard FTSE Emerging Markets (VWO)

In the last 25 Years, the Vanguard FTSE Emerging Markets (VWO) ETF obtained a 6.58% compound annual return, with a 22.40% standard deviation.

In 2022, the ETF granted a 3.29% dividend yield. If you are interested in getting periodic income, please refer to the Vanguard FTSE Emerging Markets (VWO) ETF: Dividend Yield page.

The ETF is related to the following investment themes:

  • Asset Class: Equity
  • Size: Large Cap
  • Style: Blend
  • Region: Emerging Markets
  • Country: Broad Emerging Markets

Historical Returns as of May 31, 2023

Historical returns and Metrics of Vanguard FTSE Emerging Markets (VWO) ETF.

Returns and metrics are calculated based on monthly returns, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends

ETF Returns, up to December 2005, are retrieved using the historical series of equivalent ETFs / Assets.
VANGUARD FTSE EMERGING MARKETS (VWO) ETF
Portfolio Metrics
Data Source: 1 January 1995 - 31 May 2023 (~28 years)
Swipe left to see all data
Metrics as of May 31, 2023
1M 3M 6M 1Y 3Y 5Y 10Y 20Y MAX
(~28Y)
Portfolio Return (%) -2.96 -0.87 -1.99 -7.09 4.46 0.28 2.24 8.18 5.35
US Inflation (%) 0.00 0.84 1.90 3.79 5.77 3.81 2.68 2.55 2.52
Infl. Adjusted Return (%) -2.96 -1.69 -3.81 -10.48 -1.24 -3.40 -0.43 5.50 2.76
Waiting for updates, inflation of May 2023 is temporarily set to 0%. Returns / Inflation rates over 1 year are annualized.
RISK INDICATORS
Standard Deviation (%) 21.50 16.68 18.17 16.64 20.96 22.25
Sharpe Ratio -0.48 0.21 -0.06 0.09 0.33 0.06
Sortino Ratio -0.81 0.31 -0.08 0.12 0.46 0.08
MAXIMUM DRAWDOWN
Drawdown Depth (%) -17.07 -31.86 -31.86 -31.86 -61.73 -61.73
Start (yyyy mm) 2022 06 2021 07 2021 07 2021 07 2007 11 2007 11
Bottom (yyyy mm) 2022 10 2022 10 2022 10 2022 10 2009 02 2009 02
Start to Bottom (# months) 5 16 16 16 16 16
Start to Recovery (# months) in progress
8
> 23
> 23
> 23
120
120
ROLLING PERIOD RETURNS - Annualized
Best Return (%) 88.37 45.41 39.76 17.52 10.56
Worst Return (%) -56.27 -15.31 -8.82 0.02 4.82
% Positive Periods 62% 69% 78% 100% 100%
MONTHS
Positive 0 1 2 3 19 31 63 133 189
Negative 1 2 4 9 17 29 57 107 152
% Positive 0% 33% 33% 25% 53% 52% 53% 55% 55%
WITHDRAWAL RATES (WR)
Safe WR (%) 39.92 19.89 10.55 13.80 5.37
Perpetual WR (%) 0.00 0.00 0.00 5.21 2.69
Terms and Definitions
  • Annualized Portfolio Return: it's the annualized geometric mean return of the ETF
  • Standard Deviation: it's a measure of the dispersion of returns around the mean
  • Sharpe Ratio: it's a measure of risk-adjusted performance of the ETF. It's calculated by dividing the excess return of the ETF over the risk-free rate by the ETF standard deviation. The risk-free rate here considered is the 1-3 Mth T-Bill return.
  • Sortino Ratio: another measure of risk-adjusted performance of the ETF. It's a modification of the Sharpe Ratio (same formula but the denominator is the ETF downside standard deviation).
  • Maximum Drawdown: a drawdown refers to the decline in value from a relative peak value to a relative trough. A maximum drawdown is the maximum observed loss from a peak to a trough of a portfolio before a new peak is attained.
  • Rolling Returns: returns over a time frame (best, worst, % of positive returns).
  • Pos./Neg. Months: number of months with positive/negative return.
  • Safe Withdrawal Rate (SWR): it's the percentage of the original portfolio balance that can be withdrawn at the end of each year with inflation adjustment, without the portfolio running out of money (dollar amount withdrawal).
  • Perpetual Withdrawal Rate (PWR): it's the percentage of portfolio balance that can be withdrawn at the end of each year, while retaining the inflation adjusted portfolio balance (percentage withdrawal).

Correlations as of May 31, 2023

Correlation measures to what degree the returns of the two assets move in relation to each other.

Correlation coefficient is a numerical value between -1 and +1.

If one variable goes up by a certain amount, the correlation coefficient indicates which way the other variable moves and by how much.

Asset correlations are calculated based on monthly returns.

Monthly correlations of Vanguard FTSE Emerging Markets (VWO) ETF vs the main Asset Classes, over different timeframes. Columns are sortable (click on table header to sort).

VANGUARD FTSE EMERGING MARKETS (VWO) ETF
Monthly correlations as of 31 May 2023
Swipe left to see all data
Correlation vs VWO
 
Asset Class 1 Year 5 Years 10 Years Since
Jan 1995
US Total Stock Market
VTI
0.58
0.72
0.69
0.76
US Large Cap
SPY
0.59
0.71
0.68
0.73
US Small Cap
IJR
0.45
0.72
0.61
0.70
US REITs
VNQ
0.73
0.65
0.52
0.52
US Technology
QQQ
0.55
0.63
0.61
0.63
Preferred Stocks
PFF
0.69
0.68
0.57
0.40
EAFE Stocks
EFA
0.82
0.83
0.80
0.81
World All Countries
VT
0.74
0.82
0.80
0.84
Emerging Markets
EEM
1.00
0.99
0.99
0.99
Europe
VGK
0.76
0.80
0.75
0.78
Pacific
VPL
0.90
0.84
0.83
0.76
Latin America
FLLA
0.42
0.64
0.72
0.86
US Total Bond Market
BND
0.86
0.49
0.39
0.11
Long Term Treasuries
TLT
0.88
0.11
0.07
-0.15
US Cash
BIL
0.22
-0.12
-0.07
-0.03
TIPS
TIP
0.62
0.43
0.42
0.16
Invest. Grade Bonds
LQD
0.86
0.65
0.56
0.27
High Yield Bonds
HYG
0.56
0.72
0.67
0.61
International Bonds
BNDX
0.64
0.41
0.31
0.13
Emerg. Market Bonds
EMB
0.90
0.80
0.75
0.67
Gold
GLD
0.82
0.34
0.27
0.28
Commodities
DBC
0.60
0.52
0.48
0.42

Capital Growth as of May 31, 2023

Capital growth, returns, stats are calculated assuming a reinvestment of dividends.

If you are interested in getting periodic income, please refer to the Vanguard FTSE Emerging Markets (VWO) ETF: Dividend Yield page.

An investment of 1000$, since June 1998, now would be worth 4915.77$, with a total return of 391.58% (6.58% annualized).

The Inflation Adjusted Capital now would be 2638.05$, with a net total return of 163.81% (3.96% annualized).
An investment of 1000$, since January 1995, now would be worth 4394.88$, with a total return of 339.49% (5.35% annualized).

The Inflation Adjusted Capital now would be 2168.73$, with a net total return of 116.87% (2.76% annualized).

Drawdowns

A drawdown refers to the decline in value from a relative peak value to a relative trough. A maximum drawdown is the maximum observed loss from a peak to a trough of a portfolio before a new peak is attained.

VANGUARD FTSE EMERGING MARKETS (VWO) ETF
Drawdown periods
Updated to May 2023

Worst drawdowns since June 1998.

Swipe left to see all data
Drawdown period
Recovery period
Total
Drawdown Start Bottom #Months End #Months #Months
-61.73% Nov 2007 Feb 2009 16 Oct 2017 104 120
-43.96% Jan 2000 Sep 2001 21 Dec 2003 27 48
-31.86% Jul 2021 Oct 2022 16 in progress 7 23
-31.81% Jun 1998 Aug 1998 3 Apr 1999 8 11
-28.33% Feb 2018 Mar 2020 26 Nov 2020 8 34
-11.37% May 2006 Jun 2006 2 Nov 2006 5 7
-10.41% Apr 2004 Jul 2004 4 Oct 2004 3 7
-9.40% Mar 2005 Apr 2005 2 Jul 2005 3 5
-6.57% Oct 2005 Oct 2005 1 Nov 2005 1 2
-4.87% Jul 1999 Sep 1999 3 Nov 1999 2 5
-4.15% May 1999 May 1999 1 Jun 1999 1 2
-2.32% Feb 2007 Feb 2007 1 Mar 2007 1 2
-2.15% Feb 2006 Feb 2006 1 Apr 2006 2 3
-0.71% Mar 2021 Mar 2021 1 Apr 2021 1 2
-0.34% Nov 2017 Nov 2017 1 Dec 2017 1 2
-0.14% Jan 2005 Jan 2005 1 Feb 2005 1 2
-0.01% Aug 2007 Aug 2007 1 Sep 2007 1 2

Worst drawdowns since January 1995.

Swipe left to see all data
Drawdown period
Recovery period
Total
Drawdown Start Bottom #Months End #Months #Months
-61.73% Nov 2007 Feb 2009 16 Oct 2017 104 120
-53.99% Aug 1997 Aug 1998 13 Jan 2004 65 78
-31.86% Jul 2021 Oct 2022 16 in progress 7 23
-28.33% Feb 2018 Mar 2020 26 Nov 2020 8 34
-11.37% May 2006 Jun 2006 2 Nov 2006 5 7
-11.22% Jan 1995 Mar 1995 3 May 1995 2 5
-10.41% Apr 2004 Jul 2004 4 Oct 2004 3 7
-9.40% Mar 2005 Apr 2005 2 Jul 2005 3 5
-6.73% Jul 1996 Jul 1996 1 Nov 1996 4 5
-6.57% Oct 2005 Oct 2005 1 Nov 2005 1 2
-6.44% Aug 1995 Oct 1995 3 Jan 1996 3 6
-4.74% Mar 1997 Apr 1997 2 Jun 1997 2 4
-2.32% Feb 2007 Feb 2007 1 Mar 2007 1 2
-2.15% Feb 2006 Feb 2006 1 Apr 2006 2 3
-1.60% Feb 1996 Feb 1996 1 Apr 1996 2 3
-0.71% Mar 2021 Mar 2021 1 Apr 2021 1 2
-0.55% Jun 1995 Jun 1995 1 Jul 1995 1 2
-0.34% Nov 2017 Nov 2017 1 Dec 2017 1 2
-0.14% Jan 2005 Jan 2005 1 Feb 2005 1 2
-0.01% Aug 2007 Aug 2007 1 Sep 2007 1 2

Rolling Returns ( more details)

A rolling return is a measure of investment performance that calculates the return of an investment over a set period of time, with the starting date rolling forward. This approach can provide a more accurate representation of the investment's historical performance and helps investors to evaluate the investment's consistency over time.

VANGUARD FTSE EMERGING MARKETS (VWO) ETF
Annualized Rolling Returns
Data Source: from January 1995 to May 2023
Swipe left to see all data
Rolling
Period
Annualized Return (%) Negative
Periods
Average Latest Best Worst
1 Year
8.87 -7.09 88.37
Mar 2009 - Feb 2010
-56.27
Dec 2007 - Nov 2008
38.18%
2 Years
7.22 -12.05 51.09
Mar 2009 - Feb 2011
-25.90
Sep 1996 - Aug 1998
40.57%
3 Years
6.77 4.46 45.41
Apr 2003 - Mar 2006
-15.31
Sep 1995 - Aug 1998
31.37%
5 Years
7.05 0.28 39.76
Nov 2002 - Oct 2007
-8.82
Aug 1997 - Jul 2002
22.34%
7 Years
7.31 5.00 23.91
Dec 2000 - Nov 2007
-4.75
Apr 1996 - Mar 2003
10.08%
10 Years
7.89 2.24 17.52
Sep 1998 - Aug 2008
0.02
Nov 2007 - Oct 2017
0.00%
15 Years
7.68 0.85 12.42
Apr 2003 - Mar 2018
-0.60
Nov 2007 - Oct 2022
0.62%
20 Years
7.52 8.18 10.56
Oct 2001 - Sep 2021
4.82
Feb 1996 - Jan 2016
0.00%
Annualized rolling and average returns over full calendar month periods

If you need a deeper detail about rolling returns, please refer to the Vanguard FTSE Emerging Markets (VWO) ETF: Rolling Returns page.

Seasonality

Vanguard FTSE Emerging Markets (VWO) ETF: in which months is it better to invest?

Both the Average Return and the Gain Frequency (Win %) are useful to get an idea of what happened in the past.

For further information about the seasonality, check the Asset Class Seasonality page.
Swipe left to see all data
Monthly Average Return (%) and Gain Frequency
Return (%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Average
Gain Frequency
3.20
80%
-2.55
20%
-3.23
40%
1.10
60%
-0.78
60%
0.90
60%
0.81
40%
-0.59
40%
-3.01
20%
-0.79
60%
5.06
80%
1.81
60%
 Capital Growth on monthly avg returns
100
103.20
100.57
97.33
98.40
97.64
98.52
99.32
98.73
95.76
95.01
99.81
101.62
Best 9.7
2019
1.6
2021
2.6
2023
7.8
2020
3.3
2020
6.5
2020
8.6
2020
2.7
2020
0.9
2019
3.9
2019
14.3
2022
7.1
2019
Worst -5.5
2020
-6.7
2023
-17.0
2020
-5.8
2022
-6.4
2019
-4.8
2018
-5.9
2021
-4.2
2018
-10.1
2022
-7.7
2018
-2.9
2021
-3.3
2018
Monthly Seasonality over the period Jun 2018 - May 2023
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Monthly Average Return (%) and Gain Frequency
Return (%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Average
Gain Frequency
1.60
60%
-0.83
40%
0.18
50%
1.36
70%
-0.89
50%
0.56
60%
1.03
60%
-0.86
50%
-1.63
30%
1.07
80%
1.66
40%
0.36
40%
 Capital Growth on monthly avg returns
100
101.60
100.75
100.94
102.31
101.40
101.96
103.02
102.13
100.47
101.54
103.22
103.59
Best 9.7
2019
4.7
2015
12.7
2016
7.8
2020
3.3
2020
6.5
2020
8.6
2020
3.8
2014
7.3
2013
5.3
2015
14.3
2022
7.1
2019
Worst -8.4
2014
-6.7
2023
-17.0
2020
-5.8
2022
-6.4
2019
-5.3
2013
-6.3
2015
-9.9
2015
-10.1
2022
-7.7
2018
-4.1
2016
-4.7
2014
Monthly Seasonality over the period Jun 2013 - May 2023
Swipe left to see all data
Monthly Average Return (%) and Gain Frequency
Return (%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Average
Gain Frequency
0.59
55%
0.52
52%
0.80
52%
2.58
66%
-0.69
48%
0.29
50%
0.69
57%
-1.98
46%
-0.48
54%
0.83
64%
1.91
57%
2.67
64%
 Capital Growth on monthly avg returns
100
100.59
101.11
101.93
104.56
103.83
104.14
104.86
102.79
102.29
103.14
105.11
107.91
Best 11.8
2001
11.9
1998
12.7
2016
17.4
2009
17.9
2009
7.9
1999
10.9
2009
6.4
2003
11.4
2010
15.9
2011
14.3
2022
14.3
1999
Worst -10.7
1995
-8.7
2001
-17.0
2020
-7.9
2004
-12.5
1998
-9.8
2008
-8.5
2002
-26.1
1998
-18.4
2011
-27.3
2008
-9.8
2000
-4.7
2014
Monthly Seasonality over the period Jan 1995 - May 2023

Monthly/Yearly Returns

Vanguard FTSE Emerging Markets (VWO) ETF data source starts from January 1995: let's focus on monthly and yearly returns.

We are providing two different views:
  • Histogram: it shows the distribution of the returns recorded so far
  • Plain Table: it shows the detailed monthly and yearly returns
MONTHLY RETURNS HISTOGRAM
Jan 1995 - May 2023
189 Positive Months (55%) - 152 Negative Months (45%)
MONTHLY RETURNS TABLE
Jan 1995 - May 2023
(Scroll down to see all data)
Swipe left to see all data
Yearly Return(%)
Monthly Return(%)
Year Total Infl.Adj Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2023
+0.25 -1.92 8.3 -6.7 2.6 -0.4 -3.0
2022
-17.99 -22.96 0.4 -3.7 -3.3 -5.8 0.5 -3.9 -0.8 -0.5 -10.1 -2.9 14.3 -2.2
2021
+1.30 -5.36 3.1 1.6 -0.7 1.8 1.7 1.3 -5.9 2.2 -3.3 1.3 -2.9 1.6
2020
+15.19 +13.65 -5.5 -3.5 -17.0 7.8 3.3 6.5 8.6 2.7 -1.2 1.3 8.6 6.0
2019
+20.76 +18.06 9.7 -0.4 2.3 2.1 -6.4 5.4 -1.8 -3.3 0.9 3.9 0.5 7.1
2018
-14.77 -16.36 8.6 -5.4 -0.2 -2.8 -2.3 -4.8 4.0 -4.2 -1.3 -7.7 4.8 -3.3
2017
+31.48 +28.76 5.8 2.2 2.8 1.6 1.0 0.8 5.3 3.0 -0.5 2.4 -0.3 3.7
2016
+12.21 +9.93 -5.7 -0.3 12.7 1.0 -3.2 4.9 5.1 0.8 2.1 0.3 -4.1 -0.7
2015
-15.81 -16.42 -0.2 4.7 -2.1 7.4 -3.6 -2.5 -6.3 -9.9 -2.9 5.3 -2.3 -3.4
2014
-0.07 -0.82 -8.4 3.2 4.6 0.9 3.1 3.2 1.4 3.8 -7.2 2.2 -1.1 -4.7
2013
-4.92 -6.32 0.1 -2.4 -1.3 2.0 -5.1 -5.3 0.7 -3.4 7.3 4.3 -0.9 -0.3
2012
+19.20 +17.16 10.8 5.4 -2.6 -2.1 -10.7 5.0 0.2 0.2 5.3 -0.6 1.3 7.1
2011
-18.76 -21.10 -3.4 -0.2 5.5 3.4 -2.9 -1.0 -0.6 -9.1 -18.4 15.9 -1.7 -4.2
2010
+19.47 +17.71 -6.7 1.9 8.2 -0.2 -9.2 -0.5 10.2 -2.6 11.4 3.1 -2.8 7.6
2009
+76.28 +71.61 -8.9 -2.4 12.4 17.4 17.9 -2.5 10.9 -0.7 10.0 -2.4 7.2 3.1
2008
-52.49 -52.53 -9.0 2.9 -3.7 8.4 1.8 -9.8 -4.7 -7.9 -15.6 -27.3 -8.6 7.6
2007
+37.26 +31.88 0.1 -2.3 4.3 3.8 6.7 4.5 3.5 0.0 9.8 13.0 -8.5 -1.0
2006
+29.36 +26.16 11.6 -2.1 1.2 7.8 -11.3 -0.1 1.9 1.5 1.1 5.1 7.3 4.0
2005
+32.05 +27.69 -0.1 8.9 -6.7 -2.9 3.4 3.3 6.9 1.0 8.6 -6.6 8.0 6.2
2004
+26.12 +22.14 3.1 4.2 0.4 -7.9 -0.8 -0.1 -1.8 4.1 5.6 2.3 10.2 5.3
2003
+57.65 +54.74 0.1 -3.8 -2.0 8.8 6.4 5.9 7.0 6.4 0.8 9.1 1.1 7.8
2002
-7.43 -9.58 2.9 2.7 4.5 0.3 -0.4 -8.2 -8.5 1.4 -10.7 6.6 7.1 -3.3
2001
-2.88 -4.36 11.8 -8.7 -10.4 9.3 1.5 -2.1 -6.7 -1.0 -15.6 6.6 9.3 7.7
2000
-27.56 -29.93 -4.9 3.5 -0.9 -7.5 -5.3 6.3 -5.2 1.5 -6.1 -7.6 -9.8 6.0
1999
+61.57 +57.35 -2.9 2.2 11.7 15.4 -4.2 7.9 -3.4 -1.0 -0.5 3.8 8.1 14.3
1998
-18.12 -19.42 -8.0 11.9 3.6 -1.0 -12.5 -9.3 1.8 -26.1 9.4 15.4 6.3 -3.1
1997
-16.82 -18.22 5.1 3.0 -3.2 -1.6 4.5 3.9 1.5 -15.1 5.2 -18.1 -1.4 1.3
1996
+15.83 +12.10 10.2 -1.6 1.5 2.7 1.5 0.0 -6.7 3.1 2.3 -1.5 3.5 0.6
1995
+0.56 -1.93 -10.7 0.4 -1.0 5.2 7.7 -0.5 2.9 -2.4 0.2 -4.3 0.4 4.1

ETF Returns, up to December 2005, are simulated. They have been calculated using the historical series of equivalent ETFs / Assets.