ACWX vs. VEA

Last updated Jun 23, 2026

ACWX (iShares MSCI ACWI ex U.S. ETF) and VEA (Vanguard FTSE Developed Markets ETF) are both Foreign Large Cap Equities funds - ACWX tracks the MSCI All Country World ex-U.S. Index while VEA tracks the FTSE Developed All Cap ex US Index. Both are passively managed. Over the past 10 years, ACWX returned 10.42%/yr vs 11.06%/yr for VEA. With a 0.97 correlation, they move nearly in lockstep. ACWX charges 0.32%/yr vs 0.03%/yr for VEA.

Performance

ACWX vs. VEA - Performance Comparison

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

Returns By Period

The year-to-date returns for both investments are quite close, with ACWX having a 16.57% return and VEA slightly higher at 16.69%. Over the past 10 years, ACWX has underperformed VEA with an annualized return of 10.42%, while VEA has yielded a comparatively higher 11.06% annualized return.

ACWX

• 1D: 0.36%
• 1M: 4.21%
• YTD: 16.57%
• 6M: 17.25%
• 1Y: 35.16%
• 3Y*: 20.31%
• 5Y*: 9.20%
• 10Y*: 10.42%

VEA

• 1D: 0.11%
• 1M: 3.28%
• YTD: 16.69%
• 6M: 17.33%
• 1Y: 35.42%
• 3Y*: 20.72%
• 5Y*: 10.37%
• 10Y*: 11.06%

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

ACWX vs. VEA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ACWX iShares MSCI ACWI ex U.S. ETF	16.57%	32.59%	5.17%	15.63%	-16.07%	7.67%	10.29%	21.05%	-13.99%	27.20%
VEA Vanguard FTSE Developed Markets ETF	16.69%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	26.42%

Correlation

The correlation between ACWX and VEA is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.98
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.98
Correlation (All Time) Calculated using the full available price history since Mar 31, 2008	0.97

The correlation between ACWX and VEA has been stable across timeframes, ranging from 0.97 to 0.98 - a consistent structural relationship.

ACWX vs. VEA - Sectors Allocation Comparison

Sectors	ACWX	VEA
Technology	23.8%	16.6%
Financial Services	23.7%	22.3%
Industrials	13.6%	17.5%
Consumer Cyclical	7.0%	7.4%
Basic Materials	6.6%	7.5%
Healthcare	6.5%	7.6%
Consumer Defensive	5.0%	5.5%
Communication Services	4.6%	3.2%
Energy	4.4%	4.7%
Utilities	2.9%	3.0%
Real Estate	1.3%	2.5%

Return for Risk

ACWX vs. VEA — Risk / Return Rank

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

ACWX

ACWX Risk / Return Rank: 67
ACWX Sharpe Ratio Rank: 69
ACWX Sortino Ratio Rank: 66
ACWX Omega Ratio Rank: 69
ACWX Calmar Ratio Rank: 64
ACWX Martin Ratio Rank: 67

VEA

VEA Risk / Return Rank: 67
VEA Sharpe Ratio Rank: 69
VEA Sortino Ratio Rank: 67
VEA Omega Ratio Rank: 69
VEA Calmar Ratio Rank: 64
VEA Martin Ratio Rank: 66

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.

ACWX vs. VEA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI ACWI ex U.S. ETF (ACWX) 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.

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.

	ACWX	VEA	Difference
Sharpe ratio: Return per unit of total volatility	2.15	2.16	-0.01
Sortino ratio: Return per unit of downside risk	2.91	2.93	-0.02
Omega ratio: Gain probability vs. loss probability	1.39	1.39	0.00
Calmar ratio: Return relative to maximum drawdown	3.09	3.06	+0.03
Martin ratio: Return relative to average drawdown	11.86	11.80	+0.06

ACWX vs. VEA - Sharpe Ratio Comparison

The current ACWX Sharpe Ratio is 2.15, which is comparable to the VEA Sharpe Ratio of 2.16. The chart below compares the historical Sharpe Ratios of ACWX 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.

Drawdowns

ACWX vs. VEA - Drawdown Comparison

The maximum ACWX drawdown since its inception was -60.40%, roughly equal to the maximum VEA drawdown of -60.68%. Use the drawdown chart below to compare losses from any high point for ACWX and VEA.

Drawdown Indicators

	ACWX	VEA	Difference
Max Drawdown Largest peak-to-trough decline	-60.40%	-60.68%	+0.28%
Max Drawdown (1Y) Largest decline over 1 year	-11.42%	-11.63%	+0.21%
Max Drawdown (3Y) Largest decline over 3 years	-13.84%	-13.45%	-0.39%
Max Drawdown (5Y) Largest decline over 5 years	-29.78%	-29.71%	-0.07%
Max Drawdown (10Y) Largest decline over 10 years	-35.38%	-35.73%	+0.35%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-13.30%	-13.26%	-0.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.97%	3.01%	-0.04%

Volatility

ACWX vs. VEA - Volatility Comparison

iShares MSCI ACWI ex U.S. ETF (ACWX) and Vanguard FTSE Developed Markets ETF (VEA) have volatilities of 6.55% and 6.32%, 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

	ACWX	VEA	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.55%	6.32%	+0.23%
Volatility (6M) Calculated over the trailing 6-month period	14.41%	14.39%	+0.02%
Volatility (1Y) Calculated over the trailing 1-year period	16.45%	16.52%	-0.07%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.47%	16.71%	-0.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.41%	17.38%	+0.03%

ACWX vs. VEA - Expense Ratio Comparison

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

Dividends

ACWX vs. VEA - Dividend Comparison

ACWX's dividend yield for the trailing twelve months is around 2.46%, less than VEA's 2.50% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ACWX iShares MSCI ACWI ex U.S. ETF	2.46%	2.82%	2.97%	2.96%	2.68%	2.74%	1.88%	3.22%	2.60%	2.40%	2.77%	2.51%
VEA Vanguard FTSE Developed Markets ETF	2.50%	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 ACWX and VEA in my portfolio?

With a correlation of 0.98, ACWX 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, ACWX or VEA?

ACWX has higher volatility (6.55%) compared to VEA (6.32%). In terms of maximum drawdown, ACWX dropped -60.40% vs VEA's -60.68%.

Which ETF is better, ACWX or VEA?

On 10-year performance, VEA leads with 11.06% vs 10.42% for ACWX. On fees, VEA is cheaper at 0.03% per year. On volatility, VEA has been the lower-risk option at 6.32%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ACWX or VEA?

Over the 10-year period, VEA has performed better with a 11.06% return vs 10.42%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ACWX or VEA?

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

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

VEA has the higher dividend yield at 2.50%, compared with 2.46% for ACWX.

What is the main difference between ACWX and VEA?

ACWX tracks MSCI All Country World ex-U.S. 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 ACWX and 0.03% for VEA.

Which has better risk-adjusted returns?

VEA currently has the higher Sharpe Ratio (2.16 vs 2.15), 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.