Over five years, a hypothetical $1,000 investment in Vanguard Total World Stock ETF (VT) grew to $1,672, versus $1,365 in Vanguard FTSE Emerging Markets ETF (VWO). Both charge 0.06%; VWO's trailing dividend yield was 2.4%, compared with 1.8% for VT.
VT holds more than 10,000 stocks across developed and emerging markets; VWO holds 6,348 stocks in emerging economies. Their maximum five-year drawdowns were 26.4% for VT and 34.3% for VWO. VT's largest positions included Nvidia (4.3%), Apple (3.8%) and Microsoft (3.1%); VWO's largest was Taiwan Semiconductor Manufacturing (14.7%).
The article's author favors VT for most investors, citing reported 10-year total returns of about 228% for VT and 115% for VWO. The article also cautions that holding VT alongside an S&P 500 fund or individual shares such as Nvidia, Apple and Microsoft can increase concentration in major U.S. technology stocks.
