TDF vs VWO: Correlation
Templeton Dragon Fund, Inc. (TDF) and Vanguard FTSE Emerging Markets ETF (VWO) show a strong relationship: their 3-year correlation of weekly returns is 0.76.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TDF and VWO?
Over the past 3 years, TDF and VWO moved with a correlation of 0.76, which is strong. Recent behaviour matches the longer record: 0.76 over 1 year against 0.76 over 3. Over 5 years the correlation is 0.77, and the annualized covariance of weekly returns is 254.4 %².
By 3-year correlation, VWO places #4 of the 21 assets tracked against TDF. The last year tells two different stories: VWO led by 18.2 percentage points, +3.4% for TDF against +21.6% for VWO.
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.
TDF vs VWO: side by side
| TDF (Templeton Dragon Fund, Inc.) | VWO (Vanguard FTSE Emerging Markets ETF) | |
|---|---|---|
| 1-year return | +3.4% | +21.6% |
| 5-year return | -29.3% | +38.2% |
| Volatility (ann.) | 22.2% | 15.2% |
| Beta vs S&P 500 | 0.64 | 0.75 |
| Max drawdown (3Y) | -22.2% | -17.4% |
| Market cap | $0.3B | – |
| P/E (trailing) | 3.6 | – |
| Dividend yield | 3.68% | 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 | TDF | VWO |
|---|---|---|
| 2022 | -32.9% | -18.0% |
| 2023 | -20.1% | +9.3% |
| 2024 | +5.5% | +10.6% |
| 2025 | +37.7% | +25.6% |
| 2026 | -1.2% | +13.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are TDF and VWO good diversifiers for each other?
Somewhat, no more. With 0.76 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between TDF and VWO?
As of 2026-08-27, the correlation of weekly returns between TDF and VWO is 0.76 over 3 years, 0.76 over 1 year and 0.77 over 5 years.
Is VWO a good diversifier for TDF?
Somewhat, no more. With 0.76 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.76 mean?
On the −1 to +1 scale, 0.76 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/tdf-vs-vwo.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/tdf-vs-vwo/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: TDF correlations · VWO correlations
