Vanguard Emerging Markets Stock Index Fund
VWO InternationalUpdated: Jul 5, 2026, 21:17 UTC
Key Metrics
Top 10 Holdings
| Holding | Ticker | Weight | Bar |
|---|---|---|---|
| Taiwan Semiconductor Manufacturing Co Ltd | 2330.TW | 14.66% | |
| Tencent Holdings Ltd | 0700.HK | 2.74% | |
| Alibaba Group Holding Ltd Ordinary Shares | 9988.HK | 2.26% | |
| MediaTek Inc | 2454.TW | 1.62% | |
| Delta Electronics Inc | 2308.TW | 1.2% | |
| Hon Hai Precision Industry Co Ltd | 2317.TW | 0.91% | |
| Reliance Industries Ltd | RELIANCE.NS | 0.77% | |
| China Construction Bank Corp Class H | 00939 | 0.77% | |
| HDFC Bank Ltd | HDFCBANK.NS | 0.72% | |
| ICICI Bank Ltd | ICICIBANK.NS | 0.57% |
Sector Allocation
About This ETF
The Vanguard Emerging Markets Stock Index Fund (VWO) is a International ETF with an expense ratio (TER) of 0.06% and $162.8B in assets under management., with its largest holdings being Taiwan Semiconductor Manufacturing Co Ltd, Tencent Holdings Ltd, Alibaba Group Holding Ltd Ordinary Shares. The ETF currently yields 2.43% in dividends. Year-to-date, VWO has returned +7.61%. With an expense ratio of just 0.06%, it is one of the cheapest ETFs in its category.
The index measures the investment return of stocks issued by companies located in emerging market countries. The fund employs an indexing investment approach designed to track the performance of the FTSE Emerging Markets All Cap China A Inclusion Index. It invests by sampling the index, meaning that it holds a broadly diversified collection of securities that, in the aggregate, approximates the index in terms of key characteristics.
📊 In-depth comparison:
Emerging markets ETF comparison ›FAQ — VWO
What is the TER of VWO (Vanguard Emerging Markets Stock Index Fund)?
VWO has a Total Expense Ratio (TER) of 0.06 % per year. That sits below the international category median (0.32 % across 13 peer ETFs). The TER is deducted directly from the fund and lowers your effective return.
What return has VWO delivered?
Performance for VWO: YTD: +7.61 % · 3-year p.a.: +16.30 % · 5-year p.a.: +5.04 %. Over 5 years, VWO underperforms the international category median of +8.56 % by -3.52 pp. Past performance is no guarantee of future returns.
What are the top holdings of VWO?
The five largest positions in VWO are: 2330.TW, 0700.HK, 9988.HK, 2454.TW, 2308.TW. The full holdings list is updated daily on this page.
Does VWO pay dividends?
VWO has a current dividend yield of 2.43 %. Distributing ETFs pay this out in cash; accumulating versions reinvest it inside the fund. Check the share class on your broker before buying.
Where can I buy or set up a savings plan for VWO?
VWO is available at most major brokers. For a free monthly savings plan from €1, look at Trade Republic, Scalable Capital or Flatex. The broker comparison on this site shows fees, free-savings-plan ETFs and execution exchanges side by side.
What the Vanguard FTSE Emerging Markets ETF (VWO) Is
The Vanguard Emerging Markets Stock Index Fund (VWO) tracks the FTSE Emerging Markets All Cap China A Inclusion Index, packaging stocks from developing economies such as Taiwan, China and India into a single basket. With an expense ratio of just 0.06% and assets of $159.9B, it is one of the largest and cheapest ways to gain broadly diversified exposure to the growth potential of emerging markets & their long-run return opportunities in one trade.
Performance in Context
VWO is up 9.05% year-to-date and has delivered a cumulative three-year return of 18.48%. The five-year figure is far more muted at 5.71% — a reflection of a weak China stretch and the drag from a strong U.S. dollar. Performance is driven by the technology sector (29.61%), led by Taiwan Semiconductor at a 14.09% weight, plus financial services (19.5%). A dividend yield of 2.48% adds an income component. The price trades near its 52-week high of $61.03, well above the $46.73 low.
Risk Profile
Emerging-market equities are structurally more volatile than developed markets. Key risks include:
- Currency risk: VWO is denominated in U.S. dollars. For euro-area investors, EUR/USD moves layer on top of the underlying equity return.
- Country concentration: Heavy weights in China, Taiwan and India bundle geopolitical and regulatory risk.
- Single-stock concentration: Taiwan Semiconductor alone accounts for 14.09%.
- Sector tilt: Technology (29.61%) and financials (19.5%) dominate.
Policy intervention and weaker investor-protection standards can drive sharp short-term swings.
Who It Suits
VWO fits long-term investors with a horizon of at least ten years who want to complement a global or U.S.-heavy portfolio with dedicated emerging-market exposure. Those seeking growth beyond established developed economies, and able to sit through interim drawdowns, will find a low-cost, broadly diversified solution.
It is less appropriate for conservative or short-term investors, those near retirement, and anyone unwilling to tolerate currency and price swings. As a sole portfolio holding VWO is too concentrated — it works best as a satellite allocation alongside core holdings.
How It Compares
Within the international space VWO faces several alternatives:
- iShares Core MSCI Emerging Markets (IEMG): a direct emerging-market rival with a similar profile; VWO stays especially cheap at 0.06%.
- Vanguard Total International Stock (VXUS): covers BOTH emerging and developed markets outside the U.S. — broader, but with a smaller emerging-market share.
- Vanguard FTSE Developed Markets (VEA): a pure developed-market focus (Europe, Japan) that complements VWO without emerging-market risk.
VWO is the choice for targeted, low-cost emerging-market exposure.
Where can I buy VWO?
Compare the best brokers for ETF savings plans — low fees, trusted providers, fully regulated.