Vanguard FTSE Emerging Markets ETF

Frequently Asked Questions About VWO

What does VWO invest in?

This ETF is designed to invest in equities of companies situated in developing economies worldwide, including notable markets such as China, Brazil, Taiwan, and South Africa. Its primary objective is to closely mirror the performance of the FTSE Emerging Markets All Cap China A Inclusion Index. While this investment offers significant potential for capital appreciation, it also entails considerable risk; its market value can experience greater fluctuations compared to equity funds that focus on more established economies, like the United States. Consequently, it is best suited for investors with a long-term investment horizon. To ensure diversification, and pertaining to 75% of its total assets, the fund typically refrains from purchasing more than 10% of an issuer's voting shares or dedicating over 5% of its total assets to any single issuer's securities. An exception to these guidelines is permitted if required to align with the composition of its target index. Furthermore, these concentration restrictions do not extend to obligations issued by the U.S. government or its agencies.

What is the expense ratio of VWO?

Vanguard FTSE Emerging Markets ETF (VWO) charges an expense ratio of 0.06%. This is the annual fee deducted from fund assets to cover management and operations.

How big is VWO?

Vanguard FTSE Emerging Markets ETF (VWO) manages $164.70B in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation.

Is VWO actively managed or an index fund?

VWO is a passive index fund. It tracks a published benchmark by holding the constituents in their published weights. Index funds typically charge low expense ratios (VWO's is 0.06%) because there's no security selection cost.

When was VWO launched?

Vanguard FTSE Emerging Markets ETF (VWO) launched in March 2005 and is managed by Vanguard.

How has VWO performed?

VWO's total return (price change plus reinvested distributions) is charted at the top of this page. Switch the price chart to Total Return and pick a 1-year, 3-year, 5-year, or 10-year window to read the compound annual growth rate (CAGR) over each horizon.