Share-split context: A forward split was recorded on Jun 18, 2008 with coefficient 2. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.

ETF Education Report: Vanguard Emerging Markets Stock Index Fund ETF Shares (VWO)

What this ETF is trying to do

The Vanguard Emerging Markets Stock Index Fund ETF Shares (VWO) is an exchange-traded fund designed to track a specific group of stocks. It focuses on "emerging markets," which are countries that are growing and developing their economies.

What the numbers show

When looking at an ETF, it is important to know the difference between "price return" and "total return."

• Price return only tracks how much the share price itself has changed.

• Total return includes both the change in share price and any cash payments (distributions) made to investors.

For VWO, the numbers show growth over different time periods:

• Year-to-Date (YTD): The price return is approximately 11.33%, while the total return is approximately 11.67%.

• One Year: The price return was approximately 9.46%, and the total return was approximately 11.92%.

• Three Years: The price return was approximately 53.07%, and the total return was approximately 66.51%.

• Five Years: The five-year total return was approximately 37.18%.

This ETF has a history of "forward splits." This means that in the past, one old share became multiple new shares. When this happens, the price per share drops proportionally, but the total value of your investment stays the same at that moment.

Income and distribution explanation

Some investors look for ETFs that pay out cash, known as distributions. VWO has a distribution yield of approximately 2.03%. This means the cash payments are about 2.03% of the current share price. Over the last 12 months, there were 3 distributions. These payments are described as "irregular" or "less frequent."

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of an ETF's underlying assets declines significantly. It is important for income investors to watch this, as they want their original investment to stay stable while collecting cash. For VWO, the erosion-risk score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Top Holdings

The following are the top holdings in this fund (as of October 8, 2026). Please note that holdings can change over time.

• PDD Holdings Inc ADR (0.79%)

• Yum China Holdings Inc (0.20%)

• Analogold Ashanti PLC (0.13%)

• KE Holdings Inc ADR (0.13%)

• Tencent Music Entertainment Group ADR (0.10%)

• Full Truck Alliance Co Ltd ADR (0.09%)

• Kanzhun Ltd ADR (0.06%)

• Itau Unibanco Holding SA ADR (0.05%)

• Chunghwa Telecom Co Ltd ADR (0.04%)

• Bancolombia SA ADR (0.03%)

Pros

• The fund has shown positive total returns over one, three, and five-year periods.

• It provides a distribution yield for those seeking cash income.

Cons

• The distributions are irregular and do not happen on a set schedule.

Beginner takeaway

VWO tracks stocks in emerging markets. When studying this ETF, remember that the total return is a more complete picture of performance than the price return alone because it includes distributions. Always look at both to see how the fund has performed overall.