Vanguard’s Emerging Markets Stock Index Fund (VWO) Top 25 Holdings

The Vanguard FTSE Emerging Markets ETF (VWO) is one of the largest and most widely followed vehicles for investors seeking exposure to developing economies. It tracks companies across Asia, Latin America, the Middle East, and beyond, offering diversification into markets with higher growth potential compared to developed nations.

Unlock our Free Report: 5 AI compounders that analysts believe are undervalued and could deliver years of outperformance with accelerating AI adoption (Sign up for TIKR, it’s free) >>>

In 2025, VWO has delivered a strong 21.9% year-to-date return with a 31.1% CAGR over the measured period. Despite volatility tied to global trade, currency fluctuations, and regional politics, emerging markets have demonstrated resilience, driven by the adoption of technology, rising consumer demand, and ongoing industrialization.

VWO’s top holdings highlight the mix of global leaders and domestic champions driving growth across emerging economies. With Taiwan Semiconductor, Tencent, and Alibaba anchoring the portfolio, VWO provides investors with exposure to the companies shaping the future of technology, finance, and consumer trends in fast-growing regions.

1. Taiwan Semiconductor Manufacturing Co. Ltd (2330)

TSMC is VWO’s largest holding, at 8.97% of the fund. As the world’s largest contract chipmaker, TSMC is a vital component of global technology supply chains. Its advanced manufacturing capabilities make it the go-to producer for cutting-edge semiconductors used in smartphones, data centers, AI, and electric vehicles.

The company’s dominance is both a strength and a geopolitical flashpoint. TSMC is deeply integrated into global tech supply chains; however, its location in Taiwan exposes it to regional geopolitical risks. Despite this, global demand for semiconductors ensures consistent growth, with TSMC maintaining pricing power and a strong backlog.

For VWO investors, TSMC represents both growth and strategic importance. Its position as a global leader in advanced chips gives the ETF exposure to a company that underpins virtually every modern technology trend.

2. Tencent Holdings Ltd. (700)

Tencent is VWO’s second-largest holding, accounting for 4.73% of the fund. As one of China’s most powerful technology companies, Tencent dominates in social media, online gaming, fintech, and cloud services. Its flagship app, WeChat, is deeply embedded in the daily lives of over a billion users, providing a platform for messaging, payments, and e-commerce.

Despite regulatory challenges in China, Tencent continues to generate substantial revenue from its gaming empire and fintech ecosystem. Its investments in AI and cloud computing also provide long-term growth opportunities as China advances with its digital transformation.

For VWO, Tencent offers direct exposure to China’s growing digital economy. Its scale, reach, and diversified business model make it a key driver of the fund’s performance.

Value stocks in less than 60 seconds with TIKR’s new Valuation Model (It’s free) >>>

3. Alibaba Group Holding Ltd. (9988)

Alibaba is VWO’s third-largest holding, at 2.92% of the fund. The e-commerce and cloud giant remains one of the most recognized companies in China and across emerging markets. Its platforms handle hundreds of billions of dollars in transactions annually, while Alibaba Cloud is among the largest cloud service providers in Asia.

The company has faced headwinds from regulatory oversight and increased competition, but it remains a dominant force in Chinese e-commerce. Alibaba’s efforts to streamline operations and refocus on profitability have resonated with investors, helping it stabilize after a volatile period.

For VWO investors, Alibaba provides exposure to both the rapid growth of digital retail and the accelerating adoption of cloud services in emerging economies. Its scale and diversification ensure it remains a cornerstone of the ETF.

What VWO Really Owns

VWO’s top three holdings, TSMC, Tencent, and Alibaba, highlight the importance of technology and digital platforms in emerging market growth. Together, these companies account for more than 16% of the ETF’s weight, giving investors exposure to the companies driving the digital economy across Asia.

Beyond its top names, VWO includes major financial institutions, consumer brands, and industrial leaders across markets such as India, Brazil, Saudi Arabia, and South Africa. This diversification helps balance the risks inherent in emerging markets while capturing their higher long-term growth potential.

Key Insights

• Tech dominance: TSMC, Tencent, and Alibaba anchor the fund, highlighting the importance of technology in emerging markets.
• Resilient returns: A 21.9% YTD gain demonstrates the growth potential of developing economies despite volatility.
• Diversified footprint: Exposure to Asia, Latin America, the Middle East, and Africa reduces concentration risk.
• Growth drivers: Rising consumer demand, financial inclusion, and digital adoption underpin long-term performance.

Outstanding Year-to-Date Returns

The Vanguard FTSE Emerging Markets ETF (VWO) has delivered a 21.9% YTD return, reflecting renewed investor confidence in developing economies. Its holdings span industries central to global growth, including semiconductors, e-commerce, banking, and energy.

Emerging markets remain volatile, but they also offer higher growth prospects compared to developed economies. VWO’s broad structure helps mitigate country-specific risks while still allowing investors to benefit from secular growth themes such as rising middle-class consumption, technology adoption, and financial inclusion.

For long-term investors, VWO is a straightforward, low-cost way to gain diversified exposure to emerging economies. Its consistent performance, large asset base, and strong underlying holdings make it an essential building block for globally diversified portfolios.

Quickly value any stock with TIKR’s powerful new Valuation Model (It’s free!) >>>

Want to Invest Like Warren Buffett, Joel Greenblatt, or Peter Lynch?

TIKR just published a special report breaking down 5 powerful stock screeners inspired by the exact strategies used by the world’s greatest investors.

In this report, you’ll discover:

• A Buffett-style screener for finding wide-moat compounders at fair prices
• Joel Greenblatt’s formula for high-return, low-risk stocks
• A Peter Lynch-inspired tool to surface fast-growing small caps before Wall Street catches on

Each screener is fully customizable on TIKR, so you can apply legendary investing strategies instantly. Whether you’re looking for long-term compounders or overlooked value plays, these screeners will save you hours and sharpen your edge.

This is your shortcut to proven investing frameworks, backed by real performance data.

Click here to sign up for TIKR and get this full report now, completely free.

Looking for New Opportunities?

• See what stocks billionaire investors are buying so you can follow the smart money.
• Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
• The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.

Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!