Vanguard FTSE Emerging Markets ETF
Provides broad exposure to stocks of companies located in emerging markets around the world.
Why This Week?
VWO offers an extremely low-cost way to invest in the fast-growing economies of emerging markets like China, India, Taiwan, and Brazil. For investors building a globally diversified portfolio, emerging markets offer distinct demographic and growth advantages, though they come with higher geopolitical and currency risks compared to developed markets.
Key Metrics
Top Holdings
5 holdings shown. Weights are approximate.
Pros & Cons
Strengths
- Ultra-low expense ratio (0.08%) for international markets.
- Massive diversification with over 5,700 companies.
- Captures the long-term growth potential of developing economies like India and Taiwan.
Risks & Weaknesses
- High exposure to China (~25-30%), which carries significant geopolitical and regulatory risk.
- Currency risk against a strong US Dollar.
- Historically underperformed the US market (S&P 500) over the last decade.
Alternatives Comparison
| ETF | Name | TER |
|---|---|---|
| VWOThis Week | Vanguard FTSE Emerging Markets ETF | 0.08% |
| IEMG | iShares Core MSCI Emerging Markets ETF | 0.09% |
| EMXC | iShares MSCI Emerging Markets ex China ETF | 0.25% |
💬 Frequently Asked Questions
Want to Explore Further?
VWO launched recently, so try backtesting SMH or SOXX as semiconductor proxies, or explore our ETF database for alternatives.
Disclaimer: ETF of the Week is educational content only. It is not investment advice, a recommendation to buy or sell, or an endorsement of any fund. Past performance does not guarantee future results. Always do your own research and consult a financial advisor before investing.