AAXJ vs. VPL

Last updated Aug 2, 2026

AAXJ (iShares MSCI All Country Asia ex-Japan ETF) and VPL (Vanguard FTSE Pacific ETF) are both Asia Pacific Equities funds - AAXJ tracks the MSCI All Country Asia ex Japan Index while VPL tracks the FTSE Developed Asia Pacific Index. Both are passively managed. Over the past 10 years, AAXJ returned 8.75%/yr vs 9.52%/yr for VPL. Their correlation of 0.80 means they have usually moved in the same direction. AAXJ charges 0.68%/yr vs 0.08%/yr for VPL.

Performance

AAXJ vs. VPL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI All Country Asia ex-Japan ETF (AAXJ) and Vanguard FTSE Pacific ETF (VPL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AAXJ achieves a 19.33% return, which is significantly lower than VPL's 20.61% return. Over the past 10 years, AAXJ has underperformed VPL with an annualized return of 8.75%, while VPL has yielded a comparatively higher 9.52% annualized return.

AAXJ

• 1D: 0.80%
• 1M: -2.83%
• 6M: 10.80%
• YTD: 19.33%
• 1Y: 35.70%
• 3Y*: 18.95%
• 5Y*: 6.77%
• 10Y*: 8.75%
• ALL TIME*: 6.37%

VPL

• 1D: -1.01%
• 1M: -2.62%
• 6M: 10.34%
• YTD: 20.61%
• 1Y: 37.66%
• 3Y*: 18.88%
• 5Y*: 9.33%
• 10Y*: 9.52%
• ALL TIME*: 6.48%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
AAXJ iShares MSCI All Country Asia ex-Japan ETF	$47.53M	$66.28M	$77.79M
VPL Vanguard FTSE Pacific ETF	$40.49M	$47.90M	$62.42M

AAXJ vs. VPL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AAXJ iShares MSCI All Country Asia ex-Japan ETF	19.33%	31.53%	10.41%	4.79%	-20.35%	-5.73%	23.35%	17.93%	-15.04%	41.76%
VPL Vanguard FTSE Pacific ETF	20.61%	32.66%	1.68%	15.58%	-15.20%	1.10%	16.65%	18.16%	-14.40%	28.85%

Correlation

The correlation between AAXJ and VPL is 0.86, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.86
Correlation (3Y) Balances recent behavior with more history.	0.77
Correlation (5Y) Shows whether the relationship held over a longer period.	0.78
Correlation (10Y) Provides a long-term view across more market conditions.	0.79
Correlation (All Time) Calculated using the full available price history since Aug 15, 2008	0.80

The correlation between AAXJ and VPL has been stable across timeframes, ranging from 0.77 to 0.86 - a consistent structural relationship.

AAXJ vs. VPL - Sectors Allocation Comparison

Sectors	AAXJ	VPL
Technology	51.1%	31.6%
Financial Services	16.1%	17.8%
Consumer Cyclical	7.8%	8.8%
Industrials	6.8%	17.4%
Communication Services	5.9%	4.4%
Basic Materials	2.9%	6.5%
Healthcare	2.6%	4.3%
Energy	2.1%	1.1%
Consumer Defensive	1.9%	3.2%
Utilities	1.5%	1.3%
Real Estate	1.3%	3.6%

Return for Risk

AAXJ vs. VPL — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

AAXJ

AAXJ Risk / Return Rank: 60
AAXJ Sharpe Ratio Rank: 58
AAXJ Sortino Ratio Rank: 54
AAXJ Omega Ratio Rank: 61
AAXJ Calmar Ratio Rank: 67
AAXJ Martin Ratio Rank: 61

VPL

VPL Risk / Return Rank: 72
VPL Sharpe Ratio Rank: 71
VPL Sortino Ratio Rank: 65
VPL Omega Ratio Rank: 73
VPL Calmar Ratio Rank: 80
VPL Martin Ratio Rank: 71

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

AAXJ vs. VPL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI All Country Asia ex-Japan ETF (AAXJ) and Vanguard FTSE Pacific ETF (VPL). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	AAXJ	VPL	Difference
Sharpe ratio: Return per unit of total volatility	1.37	1.59	-0.22
Sortino ratio: Return per unit of downside risk	1.87	2.16	-0.29
Omega ratio: Gain probability vs. loss probability	1.26	1.30	-0.04
Calmar ratio: Return relative to maximum drawdown	2.31	2.84	-0.53
Martin ratio: Return relative to average drawdown	7.25	8.65	-1.40

AAXJ vs. VPL - Sharpe Ratio Comparison

The current AAXJ Sharpe Ratio is 1.37, which is comparable to the VPL Sharpe Ratio of 1.59. The chart below compares the historical Sharpe Ratios of AAXJ and VPL, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

AAXJ vs. VPL - Drawdown Comparison

The maximum AAXJ drawdown since its inception was -49.37%, smaller than the maximum VPL drawdown of -55.49%. Use the drawdown chart below to compare losses from any high point for AAXJ and VPL.

Drawdown Indicators

	AAXJ	VPL	Difference
Max Drawdown Largest peak-to-trough decline	-49.37%	-55.49%	+6.12%
Max Drawdown (1Y) Largest decline over 1 year	-14.94%	-13.33%	-1.61%
Max Drawdown (3Y) Largest decline over 3 years	-19.74%	-16.35%	-3.39%
Max Drawdown (5Y) Largest decline over 5 years	-37.74%	-31.09%	-6.65%
Max Drawdown (10Y) Largest decline over 10 years	-44.52%	-33.90%	-10.62%
Current Drawdown Current decline from peak	-10.86%	-9.69%	-1.17%
Average Drawdown Average peak-to-trough decline	-13.97%	-11.59%	-2.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.76%	4.37%	+0.39%

Volatility

AAXJ vs. VPL - Volatility Comparison

iShares MSCI All Country Asia ex-Japan ETF (AAXJ) and Vanguard FTSE Pacific ETF (VPL) have volatilities of 9.50% and 9.21%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AAXJ	VPL	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.50%	9.21%	+0.29%
Volatility (6M) Calculated over the trailing 6-month period	23.01%	21.74%	+1.27%
Volatility (1Y) Calculated over the trailing 1-year period	25.22%	23.77%	+1.45%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.92%	18.34%	+2.58%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.69%	17.73%	+2.96%

AAXJ vs. VPL - Expense Ratio Comparison

AAXJ has a 0.68% expense ratio, which is higher than VPL's 0.08% expense ratio.

Dividends

AAXJ vs. VPL - Dividend Comparison

AAXJ's dividend yield for the trailing twelve months is around 1.40%, less than VPL's 2.77% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AAXJ iShares MSCI All Country Asia ex-Japan ETF	1.40%	1.81%	1.86%	1.95%	1.74%	2.21%	1.06%	1.83%	2.10%	1.99%	1.77%	2.44%
VPL Vanguard FTSE Pacific ETF	2.77%	4.01%	3.15%	3.12%	2.75%	3.19%	1.81%	2.84%	3.06%	2.57%	2.65%	2.43%

Frequently Asked Questions

Can I hold both AAXJ and VPL in my portfolio?

AAXJ and VPL have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AAXJ or VPL?

AAXJ has higher volatility (9.50%) compared to VPL (9.21%). In terms of maximum drawdown, AAXJ dropped -49.37% vs VPL's -55.49%.

Which ETF is better, AAXJ or VPL?

On 10-year performance, VPL leads with 9.52% vs 8.75% for AAXJ. On fees, VPL is cheaper at 0.08% per year. On volatility, VPL has been the lower-risk option at 9.21%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AAXJ or VPL?

Over the 10-year period, VPL has performed better with a 9.52% return vs 8.75%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AAXJ or VPL?

VPL is cheaper with a 0.08% expense ratio, compared with 0.68% for AAXJ.

Which ETF pays a higher dividend yield, AAXJ or VPL?

VPL has the higher dividend yield at 2.77%, compared with 1.40% for AAXJ.

What is the main difference between AAXJ and VPL?

AAXJ tracks MSCI All Country Asia ex Japan Index, while VPL tracks FTSE Developed Asia Pacific Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.68% for AAXJ and 0.08% for VPL.

Which has better risk-adjusted returns?

VPL currently has the higher Sharpe Ratio (1.59 vs 1.37), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.