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ETF Comparison

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

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

Data updated September 18, 2026

Best for

  • DGSInvestors who want higher current income (5.25% vs 0.76% 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

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings.

DGS has lagged VWO over the trailing twelve months, posting a 12.91% total return against 13.72%. The picture flips over 10 years, though — DGS has compounded at 8.61% a year, ahead of VWO at 7.92%. 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 Oct 2007Volatility Sharpe Sortino Max drawdown
DGS12.73%12.91%14.07%7.40%8.61%4.90%15.4%0.570.80-19.3%
VWO10.12%13.72%17.79%6.53%7.92%3.10%16.4%0.731.04-17.4%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 18, 2026. YTD and 1Y are cumulative; windows of one year or longer are annualized. “Since Oct 2007” measures every fund from October 30, 2007 — the start of shared available history — 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.
MetricDGSVWO
Full nameWisdomTree Emerging Markets SmallCap Dividend FundVanguard FTSE Emerging Markets ETF
IssuerWisdomTreeVanguard
Underlying indexWisdomTree Emerging Markets SmallCap Dividend IndexFTSE Emerging Markets All Cap China A Inclusion Index
Last Close$63.97 as of September 18, 2026$60.01 as of September 18, 2026
Distribution rate5.25%0.76%
Distribution Safety Score™ 7554
Safety-Adjusted Yield 3.94%0.41%
Expense ratio0.58%0.06%
AUM$1.72B$125B
Distribution frequencyQuarterlyQuarterly
ObjectiveSeeks to track the price and yield performance, before fees and expenses, of the WisdomTree Emerging Markets SmallCap Dividend Index, a fundamentally weighted index that measures the performance of primarily small-capitalization stocks selected from the WisdomTree Emerging Markets Dividend Index.Track the FTSE Emerging Markets All Cap China A Inclusion Index.
Asset classEquityEquity
Inception date10/30/200703/04/2005
Beta0.940.75
Last dividend$0.84$0.114 declared, pays 09/22/2026
Ex-dividend date06/25/202609/18/2026

Bottom lineChoose DGS if you want higher current income (5.25% vs 0.76% for VWO). Choose VWO if you want broad equity exposure.

Model this comparison:
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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$102B

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 DGS.

See all WisdomTree ETFs
Vanguard
ETFs116
Total AUM$4663B

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

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

DGS offers the higher yield at 5.25% vs 0.76% 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 0.58%.

They have different reference exposures: DGS is linked to WisdomTree Emerging Markets SmallCap Dividend Index while VWO is linked to FTSE Emerging Markets All Cap China A Inclusion Index, which means their performance drivers differ.

VWO is the larger fund by assets ($125B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose DGS

WisdomTree Emerging Markets SmallCap Dividend Fund

  • Want higher current income — DGS yields 5.25% vs 0.76% 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 0.58% for DGS.
  • Prefer lower volatility — a beta of 0.8 vs 0.9 for DGS.

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, DGS would generate roughly $43.75/month, while VWO would produce $6.33/month, at current distribution rates. Both pay quarterly distributions.

DGS yield5.25%
VWO yield0.76%
Monthly diff on $10K$37.42

Cost & efficiency

Over 10 years on $10,000, DGS would cost approximately $580 in fees vs $60 for VWO (simplified, not compounded). The $520.00 difference may be offset by yield or performance.

DGS ER0.58%
VWO ER0.06%

Strategy & risk

DGS tracks WisdomTree Emerging Markets SmallCap Dividend Index, while VWO tracks FTSE Emerging Markets All Cap China A Inclusion Index with an international approach. Beta is 0.94 for DGS and 0.75 for VWO, making VWO the less volatile of the two by this measure.

DGS beta0.94
VWO beta0.75

Fund details

DGS is managed by WisdomTree (launched 10/30/2007) with $1.72B in assets. VWO is managed by Vanguard (launched 03/04/2005) with $125B in assets.

DGS AUM$1.72B
VWO AUM$125B
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Frequently asked questions

What is the current distribution rate for DGS and VWO?

DGS currently distributes 5.25% and VWO 0.76%, 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 DGS or VWO better for dividend income?

It depends on your goals. DGS 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 DGS and VWO?

DGS (WisdomTree Emerging Markets SmallCap Dividend Fund) tracks WisdomTree Emerging Markets SmallCap Dividend Index, 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 DGS 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 DGS 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 — DGS scores 75, VWO scores 54, so DGS's payout currently looks the more resilient of the two. VWO has also shown lower price volatility (beta 0.75 vs 0.94 for DGS). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, DGS or VWO?

DGS has an expense ratio of 0.58% 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 DGS vs VWO generate?

At current rates, $10,000 in DGS would generate roughly $43.75 per month ($525.00 annually). The same in VWO would produce about $6.33 per month ($76.00 annually).

Which has performed better historically, DGS or VWO?

DGS has lagged VWO over the trailing twelve months, posting a 12.91% total return against 13.72%. The picture flips over 10 years, though — DGS has compounded at 8.61% a year, ahead of VWO at 7.92%. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

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DGS vs VWO — at a glance

Generated September 19, 2026.

Overview

DGS and VWO are broad emerging-markets equity ETFs that differ fundamentally in scope and income approach. DGS focuses on small-cap dividend payers within emerging markets through a fundamentally weighted index, while VWO tracks an all-cap emerging-markets universe with minimal income focus. The choice between them hinges on whether you want a concentrated dividend-income tilt or broad-based emerging-markets exposure at lower cost.

How they differ

DGS narrows its universe to dividend-paying small-caps, while VWO holds the full spectrum of emerging-markets companies across all capitalizations.

Cost and scale favor VWO. Its 0.06% expense ratio is less than one-tenth of DGS's 0.58%, and VWO's $125B in assets dwarfs DGS's $1.72B. That fee gap compounds over decades and matters especially if you're reinvesting distributions.

Beta tells a subtler story. DGS's 0.94 beta sits closer to the broad market, while VWO's 0.75 suggests modestly lower volatility. Neither is a low-volatility play, but VWO's lean toward larger, more liquid companies may explain the difference.

Who each is best for

DGS: Investors seeking current income from emerging markets who are willing to accept the trade-off of smaller company exposure and higher fees in exchange for a distribution yield five times greater than broad EM exposure.

VWO: Investors building a long-term emerging-markets allocation who prioritize low costs, full-market exposure including large caps, and total-return growth over current yield.

Key risks to know

  • Dividend sustainability in small-cap EM: Smaller emerging-markets companies may cut or suspend dividends during economic stress or currency weakness more readily than larger, more established peers. DGS's concentration in dividend payers doesn't guarantee those payouts will persist.
  • Currency exposure: Both ETFs hold non-dollar assets. Emerging-markets currencies are volatile; a strengthening U.S. dollar erodes returns for dollar-based investors regardless of underlying stock performance.
  • Narrow selection bias in DGS: By filtering for dividend payers, DGS excludes growing, reinvesting companies that don't yield. This may cause it to lag VWO's broad exposure during growth-driven bull markets in emerging markets.
  • Valuation and cyclicality: Emerging markets are cyclical. Both ETFs can experience sharp drawdowns during risk-off periods or when commodity prices—critical to many EM economies—decline sharply.

Bottom line

If you prioritize current income and are comfortable with small-cap and fee drag, DGS offers yield-focused emerging-markets exposure. If you want low-cost, broadly diversified EM exposure and can tolerate minimal distributions, VWO is the leaner alternative. Your holdings may overlap significantly in some countries, so verify sector and geographic concentration if you're considering both. Past performance does not predict future results.

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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