ACWI vs. VEA

Last updated Jun 5, 2026

ACWI (iShares MSCI ACWI ETF) and VEA (Vanguard FTSE Developed Markets ETF) are both exchange-traded funds - ACWI is a Global Equities fund tracking the MSCI All Country World Index, while VEA is a Foreign Large Cap Equities fund tracking the FTSE Developed All Cap ex US Index. Both are passively managed. Over the past 10 years, ACWI returned 12.82%/yr vs 10.13%/yr for VEA. Their correlation of 0.93 suggests significant overlap in exposure. ACWI charges 0.32%/yr vs 0.03%/yr for VEA.

Performance

ACWI vs. VEA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI ACWI ETF (ACWI) and Vanguard FTSE Developed Markets ETF (VEA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ACWI achieves a 12.47% return, which is significantly lower than VEA's 15.19% return. Over the past 10 years, ACWI has outperformed VEA with an annualized return of 12.82%, while VEA has yielded a comparatively lower 10.13% annualized return.

ACWI

• 1D: 0.30%
• 1M: 4.45%
• YTD: 12.47%
• 6M: 13.07%
• 1Y: 29.24%
• 3Y*: 21.38%
• 5Y*: 11.35%
• 10Y*: 12.82%

VEA

• 1D: 0.24%
• 1M: 4.15%
• YTD: 15.19%
• 6M: 18.13%
• 1Y: 32.11%
• 3Y*: 20.11%
• 5Y*: 9.65%
• 10Y*: 10.13%

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

ACWI vs. VEA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ACWI iShares MSCI ACWI ETF	12.47%	22.41%	17.45%	22.27%	-18.39%	18.66%	16.34%	26.59%	-9.19%	24.33%
VEA Vanguard FTSE Developed Markets ETF	15.19%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	26.42%

Correlation

The correlation between ACWI and VEA is 0.91, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.88
Correlation (5Y) Calculated over the trailing 5-year period	0.90
Correlation (10Y) Calculated over the trailing 10-year period	0.91
Correlation (All Time) Calculated using the full available price history since Mar 31, 2008	0.93

The correlation between ACWI and VEA has been stable across timeframes, ranging from 0.88 to 0.93 - a consistent structural relationship.

ACWI vs. VEA - Sectors Allocation Comparison

Sectors	ACWI	VEA
Technology	29.4%	13.8%
Financial Services	16.1%	23.3%
Industrials	10.9%	19.2%
Consumer Cyclical	9.3%	7.5%
Communication Services	9.0%	3.4%
Healthcare	8.1%	8.2%
Consumer Defensive	5.0%	5.6%
Energy	4.2%	5.4%
Basic Materials	3.7%	7.5%
Utilities	2.6%	3.3%
Real Estate	1.8%	2.7%

Return for Risk

ACWI vs. VEA — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ACWI

ACWI Risk / Return Rank: 70
ACWI Sharpe Ratio Rank: 71
ACWI Sortino Ratio Rank: 71
ACWI Omega Ratio Rank: 71
ACWI Calmar Ratio Rank: 62
ACWI Martin Ratio Rank: 73

VEA

VEA Risk / Return Rank: 61
VEA Sharpe Ratio Rank: 63
VEA Sortino Ratio Rank: 62
VEA Omega Ratio Rank: 63
VEA Calmar Ratio Rank: 57
VEA Martin Ratio Rank: 61

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ACWI vs. VEA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI ACWI ETF (ACWI) and Vanguard FTSE Developed Markets ETF (VEA). 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.

	ACWI	VEA	Difference
Sharpe ratio: Return per unit of total volatility	2.30	2.06	+0.23
Sortino ratio: Return per unit of downside risk	3.17	2.84	+0.33
Omega ratio: Gain probability vs. loss probability	1.42	1.37	+0.04
Calmar ratio: Return relative to maximum drawdown	3.02	2.77	+0.24
Martin ratio: Return relative to average drawdown	13.55	10.82	+2.74
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ACWI vs. VEA - Sharpe Ratio Comparison

The current ACWI Sharpe Ratio is 2.30, which is comparable to the VEA Sharpe Ratio of 2.06. The chart below compares the historical Sharpe Ratios of ACWI and VEA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ACWI	VEA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.30	2.06	+0.23
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.71	0.59	+0.12
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.75	0.59	+0.17
Sharpe Ratio (All Time) Calculated using the full available price history	0.43	0.25	+0.18

Drawdowns

ACWI vs. VEA - Drawdown Comparison

The maximum ACWI drawdown since its inception was -56.00%, smaller than the maximum VEA drawdown of -60.68%. Use the drawdown chart below to compare losses from any high point for ACWI and VEA.

Drawdown Indicators

	ACWI	VEA	Difference
Max Drawdown Largest peak-to-trough decline	-56.00%	-60.68%	+4.68%
Max Drawdown (1Y) Largest decline over 1 year	-9.73%	-11.63%	+1.90%
Max Drawdown (3Y) Largest decline over 3 years	-16.55%	-13.45%	-3.10%
Max Drawdown (5Y) Largest decline over 5 years	-26.42%	-29.71%	+3.29%
Max Drawdown (10Y) Largest decline over 10 years	-33.53%	-35.73%	+2.20%
Current Drawdown Current decline from peak	-0.53%	-0.66%	+0.13%
Average Drawdown Average peak-to-trough decline	-8.61%	-13.29%	+4.68%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.16%	2.98%	-0.82%

Volatility

ACWI vs. VEA - Volatility Comparison

The current volatility for iShares MSCI ACWI ETF (ACWI) is 3.83%, while Vanguard FTSE Developed Markets ETF (VEA) has a volatility of 5.49%. This indicates that ACWI experiences smaller price fluctuations and is considered to be less risky than VEA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ACWI	VEA	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.83%	5.49%	-1.66%
Volatility (6M) Calculated over the trailing 6-month period	10.30%	13.32%	-3.02%
Volatility (1Y) Calculated over the trailing 1-year period	12.79%	15.64%	-2.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.05%	16.54%	-0.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.11%	17.35%	-0.24%

ACWI vs. VEA - Expense Ratio Comparison

ACWI has a 0.32% expense ratio, which is higher than VEA's 0.03% expense ratio.

Dividends

ACWI vs. VEA - Dividend Comparison

ACWI's dividend yield for the trailing twelve months is around 1.38%, less than VEA's 2.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ACWI iShares MSCI ACWI ETF	1.38%	1.55%	1.70%	1.88%	1.79%	1.71%	1.43%	2.33%	2.18%	1.94%	2.19%	2.56%
VEA Vanguard FTSE Developed Markets ETF	2.61%	3.22%	3.35%	3.15%	2.91%	3.16%	2.04%	3.04%	3.35%	2.77%	3.05%	2.92%

Frequently Asked Questions

Can I hold both ACWI and VEA in my portfolio?

With a correlation of 0.91, ACWI and VEA move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, ACWI or VEA?

VEA has higher volatility (5.49%) compared to ACWI (3.83%). In terms of maximum drawdown, ACWI dropped -56.00% vs VEA's -60.68%.

Which ETF is better, ACWI or VEA?

On 10-year performance, ACWI leads with 12.82% vs 10.13% for VEA. On fees, VEA is cheaper at 0.03% per year. On volatility, ACWI has been the lower-risk option at 3.83%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ACWI or VEA?

Over the 10-year period, ACWI has performed better with a 12.82% return vs 10.13%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ACWI or VEA?

VEA is cheaper with a 0.03% expense ratio, compared with 0.32% for ACWI.

Which ETF pays a higher dividend yield, ACWI or VEA?

VEA has the higher dividend yield at 2.61%, compared with 1.38% for ACWI.

What is the main difference between ACWI and VEA?

ACWI is categorized as Global Equities, while VEA is Foreign Large Cap Equities. ACWI tracks MSCI All Country World Index, while VEA tracks FTSE Developed All Cap ex US Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.32% for ACWI and 0.03% for VEA.

Which has better risk-adjusted returns?

ACWI currently has the higher Sharpe Ratio (2.30 vs 2.06), 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.