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ETF Comparison

DEM vs VWO: Which Is the Better Pick in 2026?

A head-to-head comparison of WisdomTree Emerging Markets High Dividend Fund and Vanguard FTSE Emerging Markets ETF covering yield, cost, risk, and income potential.

Data updated September 4, 2026

Best for

  • DEMInvestors who want higher current income (5.08% vs 0.46% for VWO).
  • VWOInvestors who want broad equity exposure.

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

DEM has outpaced VWO over the trailing twelve months, posting a 30.03% total return against 22.78%. The lead holds up over 10 years too: DEM has compounded at 9.42% a year, against 7.81% for VWO. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD1Y3Y5Y10YSince Jul 2007Volatility Sharpe Sortino Max drawdown
DEM22.99%30.03%19.32%10.85%9.42%5.23%14.7%0.901.30-15.6%
VWO12.53%22.78%18.41%6.41%7.81%3.97%16.4%0.761.09-17.4%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 4, 2026. YTD and 1Y are cumulative; windows of one year or longer are annualized. “Since Jul 2007” measures every fund from July 13, 2007 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricDEMVWO
Full nameWisdomTree Emerging Markets High Dividend FundVanguard FTSE Emerging Markets ETF
IssuerWisdomTreeVanguard
Last Close$57.10 as of September 4, 2026$61.44 as of September 4, 2026
Distribution rate5.08%0.46%
Distribution Safety Score™ 7572
Safety-Adjusted Yield 3.81%0.33%
Expense ratio0.63%0.06%
AUM$4.22B$127B
Distribution frequencyQuarterlyQuarterly
Underlying index—FTSE Emerging Markets All Cap China A Inclusion Index
Objective—Track the FTSE Emerging Markets All Cap China A Inclusion Index.
Asset classEquityEquity
Inception date07/13/200703/04/2005
Beta0.690.75
Last dividend$0.725$0.071
Ex-dividend date06/25/202606/18/2026

Bottom lineChoose DEM if you want higher current income (5.08% vs 0.46% for VWO). Choose VWO if you want broad equity exposure.

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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

WisdomTree
ETFs94
Total AUM$103B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

WisdomTree is known for developing thematic and factor-based ETFs that go beyond traditional market-cap weighting approaches. The issuer maintains a broad lineup spanning dividend and income strategies, international equities, commodities, bonds, digital assets, and specialized thematic areas like megatrends and alternatives. WisdomTree's diverse fund family appeals to investors seeking both traditional income exposure and more specialized strategies, with popular tickers across equity, fixed income, and alternative asset classes.

See our curated list of related YouTube videos on DEM.

See all WisdomTree ETFs
Vanguard
ETFs116
Total AUM$4654B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

See our curated list of related YouTube videos on VWO.

See all Vanguard ETFs

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Quick verdict

DEM (WisdomTree Emerging Markets High Dividend Fund) and VWO (Vanguard FTSE Emerging Markets ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

DEM offers the higher yield at 5.08% vs 0.46% for VWO. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VWO is cheaper with an expense ratio of 0.06% compared to 0.63%.

VWO is the larger fund by assets ($127B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose DEM

WisdomTree Emerging Markets High Dividend Fund

  • Want higher current income — DEM yields 5.08% vs 0.46% for VWO.
  • Want a quality-dividend tilt — screened payers rather than the broad index.

Choose VWO

Vanguard FTSE Emerging Markets ETF

  • Want broad equity exposure.
  • Want to keep costs low — a 0.06% expense ratio vs 0.63% for DEM.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

Deep dive

Yield & income

On a $10,000 investment, DEM would generate roughly $42.33/month, while VWO would produce $3.83/month, at current distribution rates. Both pay quarterly distributions.

DEM yield5.08%
VWO yield0.46%
Monthly diff on $10K$38.50

Cost & efficiency

Over 10 years on $10,000, DEM would cost approximately $630 in fees vs $60 for VWO (simplified, not compounded). The $570.00 difference may be offset by yield or performance.

DEM ER0.63%
VWO ER0.06%

Strategy & risk

DEM is an ETF built around emerging markets exposure, while VWO tracks FTSE Emerging Markets All Cap China A Inclusion Index with an international approach. Beta is 0.69 for DEM and 0.75 for VWO, making DEM the less volatile of the two by this measure.

DEM beta0.69
VWO beta0.75

Fund details

DEM is managed by WisdomTree (launched 07/13/2007) with $4.22B in assets. VWO is managed by Vanguard (launched 03/04/2005) with $127B in assets.

DEM AUM$4.22B
VWO AUM$127B
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Frequently asked questions

What is the current distribution rate for DEM and VWO?

DEM currently distributes 5.08% and VWO 0.46%, based on fund data updated September 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is DEM or VWO better for dividend income?

It depends on your goals. DEM currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between DEM and VWO?

DEM (WisdomTree Emerging Markets High Dividend Fund) is an ETF built around emerging markets exposure, while VWO (Vanguard FTSE Emerging Markets ETF) tracks FTSE Emerging Markets All Cap China A Inclusion Index with an international approach. They are issued by WisdomTree and Vanguard respectively.

Can I hold both DEM and VWO?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is DEM or VWO safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — DEM scores 75, VWO scores 72, so DEM's payout currently looks the more resilient of the two. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, DEM or VWO?

DEM has an expense ratio of 0.63% while VWO charges 0.06%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in DEM vs VWO generate?

At current rates, $10,000 in DEM would generate roughly $42.33 per month ($508.00 annually). The same in VWO would produce about $3.83 per month ($46.00 annually).

Which has performed better historically, DEM or VWO?

DEM has outpaced VWO over the trailing twelve months, posting a 30.03% total return against 22.78%. The lead holds up over 10 years too: DEM has compounded at 9.42% a year, against 7.81% for VWO. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

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DEM vs VWO — at a glance

Generated September 5, 2026.

Overview

DEM and VWO are both emerging-markets equity ETFs, but they pursue fundamentally different strategies within that universe. VWO tracks the FTSE Emerging Markets All Cap China A Inclusion Index, capturing broad market-cap-weighted exposure to emerging economies. DEM, by contrast, applies a high-dividend screen to emerging-markets stocks, concentrating its portfolio on the highest-yielding names regardless of market-cap weighting.

How they differ

The core distinction is dividend focus versus broad indexing. VWO tracks a market-cap index with minimal filtration, while DEM selects and weights its holdings explicitly for dividend yield, which concentrates its portfolio into fewer, higher-income stocks. This strategy difference drives a massive yield gap: DEM distributes 5.08%, compared to 0.46% for VWO—an 11-fold spread. DEM's expense ratio is 0.63%, materially higher than VWO's 0.06%, reflecting active selection and rebalancing versus passive index tracking. VWO's AUM of dwarfs DEM's , giving it tighter spreads and lower trading friction. Both pay distributions quarterly, but their beta readings are similar: DEM at 0.69 and VWO at 0.75, suggesting modest defensive characteristics relative to broader equity markets.

Who each is best for

  • DEM: Fits income-focused investors seeking regular cash flow from emerging markets, willing to accept concentrated exposure to dividend-paying stocks and active-selection costs in exchange for a materially higher yield.
  • VWO: Fits buy-and-hold investors building long-term emerging-markets equity exposure with minimal fees and diversification across the full breadth of the EM market cap spectrum; treats dividend income as a secondary feature.

Key risks to know

  • Dividend concentration risk: DEM's high-yield screen typically concentrates holdings in a narrower set of sectors and companies—often financials, energy, and telecom—than a market-cap index. This creates single-country and single-sector concentration that may amplify volatility during sector downturns.
  • Dividend-cut exposure: High-yielding stocks in emerging markets can face pressure to cut dividends during downturns; a strategy anchored to yield screens is vulnerable to sudden distribution cuts that would hit share price simultaneously.
  • Currency risk: Both funds have meaningful exposure to non-USD currencies in EM; currency fluctuations can amplify or reduce returns independent of stock performance.

Bottom line

If you prioritize current income and accept concentrated portfolio risk, DEM's 5.08% yield offers substantially more cash flow than VWO. If you prefer diversified, low-cost exposure to the full emerging-markets landscape, VWO's $127B liquidity, 0.06% expense ratio, and market-cap approach align better with a passive allocation. Past performance does not predict future results; dividend sustainability and NAV preservation merit ongoing monitoring in any high-yield strategy.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

Dividend growth vs. high yield Yield on cost, explained How expense ratios eat returns

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