ETF VWO Average Dividend Yield

Dividend Yield of the VWO ETF

VWO is the Vanguard FTSE Emerging Markets ETF, which Vanguard launched in 2005. It follows the FTSE Emerging Markets All Cap China A Inclusion Index and holds stocks from developing economies like China, India, Taiwan and Brazil. Feed it a price and a dividend, and the calculator returns the dividend yield as a percentage using yield = (annual dividend per share ÷ share price) × 100.

VWO usually pays more than U.S. funds, often somewhere in the 2.5–3.5% range, because plenty of emerging-market companies hand back generous dividends. The catch is that those payouts swing around more, and so do the currencies behind them. The expense ratio is a low 0.07%. Distributions land quarterly in uneven amounts. Enter the share price and the last 12 months of distributions to size up the income component.

Applications

Weigh emerging-market income against developed markets (VEA) or U.S. funds, work out the dividend from a VWO allocation, or get a feel for how a richer yield travels hand in hand with more volatility and currency risk.

FAQ

Why does VWO yield more? Emerging-market firms tend to pay out a bigger chunk of their profits, and their lower valuations nudge the yield higher. Neither factor is as steady as what you see in the U.S.

What countries does VWO cover? Emerging markets such as China, India, Taiwan, Brazil and South Africa. It leaves out the developed markets that VEA handles.

Is the yield reliable? Less so than U.S. ETFs; currency swings and economic cycles make emerging-market dividends and prices more variable, so use the trailing 12-month figure.