What did VWO do before 2005?

Before Apr 2005 the series is VEIEX's. Those 10.8 years (Jun 1994–Mar 2005) show 5.3% a year with 24.1% annualized volatility and a worst drawdown of -54.0% (Jul 1997–Aug 1998). In major S&P 500 declines: 1998 LTCM sell-off, -24.8% versus -15.3% for the S&P 500 (VEIEX); 2000–02 dot-com bear, -32.6% versus -44.7% for the S&P 500 (VEIEX). The full extended history's worst drawdown is -61.7% (Oct 2007–Feb 2009).

How closely does VEIEX track VWO?

Over 258 overlapping months (Apr 2005–Sep 2026), VEIEX had a correlation of 0.992 with VWO, a tracking error of 2.5% a year and a tracking difference of -0.28% a year (grade: close).

How far back can you test VWO? To Jun 1994, with VEIEX

Computed by the MarketHeist portfolio engine · Published 2026-10-10 · Updated 2026-10-10 · Data through Sep 2026

VWO (Emerging Markets) has its own monthly data from Apr 2005. Spliced with VEIEX it reaches back to Jun 1994, which adds 10.8 years (34% of the extended history comes from proxies). Data through Sep 2026.

What you'd have missed

VWO's own data starts in Apr 2005; VEIEX extends it to Jun 1994, 10.8 more years.
Its own history misses the 1998 LTCM sell-off and the 2000–02 dot-com bear.
Its worst drawdown, -61.7% (Oct 2007–Feb 2009), is already inside the ETF's own history; the extension does not change the worst case.
EEM is extended with the same VEIEX.

How the history is built

VWO (ETF) Apr 2005 → now

VEIEX (Vanguard Emerging Markets Stock Index Fund, mutual fund) used Jun 1994 → Mar 2005; its own data runs Jun 1994 → now

Jun 1994Sep 2026

Solid bars are the months each fund contributes to the spliced series; the outline shows how far a proxy's own data runs. Each month uses the youngest fund that has data for it; returns are spliced, not prices (dividends reinvested via adjusted close).

How well each proxy tracked VWO

Proxy	Kind	Months contributed	Overlap with VWO	Correlation	Tracking error	Tracking difference	Beta	Vol ratio	Grade
VEIEXVanguard Emerging Markets Stock Index Fund	mutual fund	Jun 1994–Mar 2005130 months	Apr 2005–Sep 2026258 months	0.992	2.53%	-0.28%	0.98	0.99	Close

Statistics are over the months a proxy and VWO both have data. Tracking error is annualized; tracking difference is the annualized geometric gap (positive: the proxy earned more). Page grade: close, the worst grade among the proxies that contribute months.

VWO's own history versus the extended history

	The ETF's own history	Proxy years only	Full extended history
Window	Apr 2005 – Sep 202621.5 years	Jun 1994 – Mar 200510.8 years	Jun 1994 – Sep 202632.3 years
Growth of $10,000	$44,124	$17,474	$77,101
CAGR	7.1%	5.3%	6.5%
Annualized volatility	20.1%	24.1%	21.5%
Sharpe ratio (risk-free 0%)	0.45	0.34	0.40
Max drawdown	-61.7%Oct 2007 → Feb 2009; recovered Oct 2017	-54.0%Jul 1997 → Aug 1998; recovered Dec 2003	-61.7%Oct 2007 → Feb 2009; recovered Oct 2017
Worst complete calendar year	2008 (-52.5%)	2000 (-27.6%)	2008 (-52.5%)
Best complete calendar year	2009 (76.3%)	2003 (61.6%)	2009 (76.3%)
Longest underwater (months)	119	76	119
Major declines covered	3	2	5

The columns cover different years, so a higher or lower CAGR is not a verdict on the fund; the point is which market regimes each window includes. Growth of $10,000 is the same one-asset, buy-and-hold calculation the live portfolio app makes.

Growth of $10,000

Log scale, so the early decades are not flattened. Grey is the proxy period; blue is VWO's own data. Dashed lines mark where each fund's returns begin.

Drawdowns

Decline from the prior peak at month-end, the "underwater" curve.

How VWO did in each major US stock-market decline since 1985

Decline	S&P 500	VWO over the same months	Source of those months
1987 crashSep 1987–Nov 1987	-29.8%	not covered	before available data
1998 LTCM sell-offJul 1998–Aug 1998	-15.3%	-24.8%	VEIEX
2000–02 dot-com bearSep 2000–Sep 2002	-44.7%	-32.6%	VEIEX
2007–09 financial crisisNov 2007–Feb 2009	-50.8%	-61.7%	ETF
2020 COVID crashJan 2020–Mar 2020	-19.4%	-24.4%	ETF
2022 inflation bearJan 2022–Sep 2022	-23.9%	-24.5%	ETF

The decline windows are computed, not chosen: every peak-to-trough fall of at least 15% (month-end) in the S&P 500 series since 1985. The fund's figure compounds its monthly returns from the month after the S&P 500's peak through the trough.

VWO's own five deepest drawdowns (extended history)

Peak	Trough	Depth	Recovery	Source of the decline months
Oct 2007	Feb 2009	-61.7%	Oct 2017	ETF
Jul 1997	Aug 1998	-54.0%	Dec 2003	VEIEX
Jun 2021	Oct 2022	-31.9%	Jun 2025	ETF
Jan 2018	Mar 2020	-28.3%	Nov 2020	ETF
Sep 1994	Mar 1995	-24.5%	Jan 1997	VEIEX

This covers declines the equity windows miss, such as the bond bear markets of 1994 and 2022.

Caveats

Before Apr 2005 the returns are VEIEX's, after that fund's own costs; the measured gap while both existed is -0.28% a year.
Monthly month-end data: intra-month drawdowns were deeper than shown.
Dividends are reinvested; no taxes or trading costs are modeled.
Our data source's series for VEIEX begins Jun 1994; the fund itself may be older.

Test it yourself

Open VWO as a one-asset portfolio in the live app, where every number recomputes from fresh data.

Open VWO (100%) in the portfolio builder →

Used in portfolios: Wealthfront Classic, Yale Endowment (Swensen), Larry Portfolio

Used in strategies: Adaptive Asset Allocation

Used in guides: Larry Portfolio, Wealthfront Classic, Yale (Swensen)

All fund histories →

Frequently asked questions

How far back does VWO data go?: VWO (Emerging Markets) has its own monthly data from Apr 2005. Spliced with VEIEX it reaches back to Jun 1994, which adds 10.8 years (34% of the extended history comes from proxies). Data through Sep 2026.
What did VWO do before 2005?: Before Apr 2005 the series is VEIEX's. Those 10.8 years (Jun 1994–Mar 2005) show 5.3% a year with 24.1% annualized volatility and a worst drawdown of -54.0% (Jul 1997–Aug 1998). In major S&P 500 declines: 1998 LTCM sell-off, -24.8% versus -15.3% for the S&P 500 (VEIEX); 2000–02 dot-com bear, -32.6% versus -44.7% for the S&P 500 (VEIEX). The full extended history's worst drawdown is -61.7% (Oct 2007–Feb 2009).
How closely does VEIEX track VWO?: Over 258 overlapping months (Apr 2005–Sep 2026), VEIEX had a correlation of 0.992 with VWO, a tracking error of 2.5% a year and a tracking difference of -0.28% a year (grade: close).

Methodology

Source: Yahoo Finance via MarketHeist, monthly adjusted close (dividends reinvested). Months run to the last complete calendar month.
Splice rule: Each month uses the youngest fund that has data for it; returns are spliced, not prices (dividends reinvested via adjusted close).
Numbers: Computed by the MarketHeist portfolio engine as a one-asset, 100% buy-and-hold portfolio, the same calculation the live app makes. Sharpe uses a risk-free rate of 0%. Drawdowns are month-end.
Correlation: Pearson correlation of monthly returns over the months both funds have.
Tracking error: Standard deviation of the monthly return differences (proxy minus VWO) times the square root of 12.
Tracking difference: Annualized geometric return of the proxy minus that of VWO over the overlap. Positive means the proxy earned more.
Beta and vol ratio: Beta is the covariance of the proxy with VWO divided by the variance of VWO; vol ratio is the proxy's standard deviation divided by VWO's.
Grades: Close: correlation of at least 0.95 and tracking error of at most 3%. Approximate: tracking error of at most 8% and either a cash-like fund (volatility of at most 3%) or correlation of at least 0.80 with a vol ratio of at most 1.25. Category stand-in: anything weaker.
Generated: 2026-10-10; data through Sep 2026. Reproduce hash of the full extended one-asset portfolio: 0d36e69da0d747c7

Historical simulation, not investment advice. Past returns, including spliced proxy returns, do not predict future results.