AEF vs VWO: Correlation
How closely do abrdn Emerging Markets ex-China Fund, Inc. (AEF) and Vanguard FTSE Emerging Markets ETF (VWO) trade together? Their weekly returns over three years give a correlation of 0.86, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AEF and VWO?
Across a 3-year window, the weekly returns of AEF and VWO correlate at 0.86, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.88) sits close to the 3-year figure. Stretching to 5 years gives 0.86, with an annualized covariance of 308.3 %².
Among the 21 assets we track against AEF, VWO ranks #4 by 3-year correlation. Correlation aside, the last 12 months split them widely, with AEF ahead by 47.8 points (+69.4% versus +21.6%). One caveat on sizing: AEF is 1.6 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
AEF vs VWO: side by side
| AEF (abrdn Emerging Markets ex-China Fund, Inc.) | VWO (Vanguard FTSE Emerging Markets ETF) | |
|---|---|---|
| 1-year return | +69.4% | +21.6% |
| 5-year return | +66.6% | +38.2% |
| Volatility (ann.) | 23.7% | 15.2% |
| Beta vs S&P 500 | 1.08 | 0.75 |
| Max drawdown (3Y) | -20.0% | -17.4% |
| Market cap | $0.4B | – |
| P/E (trailing) | 4.1 | – |
| Dividend yield | 6.80% | 2.36% |
| Expense ratio | – | 0.06% |
| Assets under management | – | $162.0B |
| Sector / category | US Listed | ETF · International |
On the fund side, VWO sits in the Diversified Emerging Mkts category at Vanguard, with $162.0B under management, 4113 holdings, a 0.06% expense ratio, a 2.36% trailing dividend yield.
Year-by-year returns
| Year | AEF | VWO |
|---|---|---|
| 2022 | -29.6% | -18.0% |
| 2023 | +7.1% | +9.3% |
| 2024 | +9.4% | +10.6% |
| 2025 | +50.2% | +25.6% |
| 2026 | +41.8% | +13.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AEF and VWO good diversifiers for each other?
No: a correlation of 0.86 means AEF and VWO tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between AEF and VWO?
Using weekly returns as of 2026-08-27: 0.86 over 3 years, with 0.88 over the last year and 0.86 over 5 years.
Is VWO a good diversifier for AEF?
No: a correlation of 0.86 means AEF and VWO tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.86 mean?
On the −1 to +1 scale, 0.86 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/aef-vs-vwo.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/aef-vs-vwo/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: AEF correlations · VWO correlations
