ACWX vs. VEU

Last updated Jun 24, 2026

ACWX (iShares MSCI ACWI ex U.S. ETF) and VEU (Vanguard FTSE All-World ex-US ETF) are both Foreign Large Cap Equities funds - ACWX tracks the MSCI All Country World ex-U.S. Index while VEU tracks the FTSE All-World ex US Index. Both are passively managed. Over the past 10 years, ACWX returned 10.06%/yr vs 10.40%/yr for VEU. With a 0.98 correlation, they move nearly in lockstep. ACWX charges 0.32%/yr vs 0.04%/yr for VEU.

Performance

ACWX vs. VEU - 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 All-World ex-US ETF (VEU). 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 12.88% return and VEU slightly higher at 13.01%. Both investments have delivered pretty close results over the past 10 years, with ACWX having a 10.06% annualized return and VEU not far ahead at 10.40%.

ACWX

• 1D: -3.17%
• 1M: 0.91%
• YTD: 12.88%
• 6M: 12.78%
• 1Y: 29.85%
• 3Y*: 19.03%
• 5Y*: 8.31%
• 10Y*: 10.06%

VEU

• 1D: -3.06%
• 1M: 0.69%
• YTD: 13.01%
• 6M: 12.81%
• 1Y: 30.08%
• 3Y*: 19.26%
• 5Y*: 8.60%
• 10Y*: 10.40%

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

ACWX vs. VEU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ACWX iShares MSCI ACWI ex U.S. ETF	12.88%	32.59%	5.17%	15.63%	-16.07%	7.67%	10.29%	21.05%	-13.99%	27.20%
VEU Vanguard FTSE All-World ex-US ETF	13.01%	32.35%	5.56%	15.84%	-15.58%	8.27%	11.10%	21.83%	-14.18%	27.40%

Correlation

The correlation between ACWX and VEU is 1.00 - 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	1.00
Correlation (3Y) Calculated over the trailing 3-year period	1.00
Correlation (5Y) Calculated over the trailing 5-year period	1.00
Correlation (10Y) Calculated over the trailing 10-year period	1.00
Correlation (All Time) Calculated using the full available price history since Mar 31, 2008	0.98

The correlation between ACWX and VEU has been stable across timeframes, ranging from 0.98 to 1.00 - a consistent structural relationship.

ACWX vs. VEU - Sectors Allocation Comparison

Sectors	ACWX	VEU
Technology	23.8%	21.6%
Financial Services	23.7%	22.6%
Industrials	13.6%	15.0%
Consumer Cyclical	7.0%	8.0%
Basic Materials	6.6%	7.1%
Healthcare	6.5%	6.7%
Consumer Defensive	5.0%	4.9%
Communication Services	4.6%	4.5%
Energy	4.4%	4.7%
Utilities	2.9%	3.0%
Real Estate	1.3%	1.9%

Return for Risk

ACWX vs. VEU — Risk / Return Rank

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

ACWX

ACWX Risk / Return Rank: 55
ACWX Sharpe Ratio Rank: 55
ACWX Sortino Ratio Rank: 52
ACWX Omega Ratio Rank: 55
ACWX Calmar Ratio Rank: 55
ACWX Martin Ratio Rank: 59

VEU

VEU Risk / Return Rank: 56
VEU Sharpe Ratio Rank: 56
VEU Sortino Ratio Rank: 54
VEU Omega Ratio Rank: 57
VEU Calmar Ratio Rank: 55
VEU Martin Ratio Rank: 59

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. VEU - 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 All-World ex-US ETF (VEU). 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	VEU	Difference
Sharpe ratio: Return per unit of total volatility	1.79	1.84	-0.05
Sortino ratio: Return per unit of downside risk	2.44	2.52	-0.08
Omega ratio: Gain probability vs. loss probability	1.33	1.34	-0.01
Calmar ratio: Return relative to maximum drawdown	2.62	2.64	-0.02
Martin ratio: Return relative to average drawdown	10.05	10.12	-0.08

ACWX vs. VEU - Sharpe Ratio Comparison

The current ACWX Sharpe Ratio is 1.79, which is comparable to the VEU Sharpe Ratio of 1.84. The chart below compares the historical Sharpe Ratios of ACWX and VEU, 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. VEU - Drawdown Comparison

The maximum ACWX drawdown since its inception was -60.40%, roughly equal to the maximum VEU drawdown of -61.52%. Use the drawdown chart below to compare losses from any high point for ACWX and VEU.

Drawdown Indicators

	ACWX	VEU	Difference
Max Drawdown Largest peak-to-trough decline	-60.40%	-61.52%	+1.12%
Max Drawdown (1Y) Largest decline over 1 year	-11.42%	-11.43%	+0.01%
Max Drawdown (3Y) Largest decline over 3 years	-13.84%	-13.69%	-0.15%
Max Drawdown (5Y) Largest decline over 5 years	-29.78%	-29.14%	-0.64%
Max Drawdown (10Y) Largest decline over 10 years	-35.38%	-34.98%	-0.40%
Current Drawdown Current decline from peak	-3.17%	-3.06%	-0.11%
Average Drawdown Average peak-to-trough decline	-13.30%	-13.10%	-0.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.98%	2.98%	0.00%

Volatility

ACWX vs. VEU - Volatility Comparison

iShares MSCI ACWI ex U.S. ETF (ACWX) and Vanguard FTSE All-World ex-US ETF (VEU) have volatilities of 7.37% and 7.10%, 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	VEU	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.37%	7.10%	+0.27%
Volatility (6M) Calculated over the trailing 6-month period	14.77%	14.47%	+0.30%
Volatility (1Y) Calculated over the trailing 1-year period	16.74%	16.44%	+0.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.53%	16.30%	+0.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.27%	17.08%	+0.19%

ACWX vs. VEU - Expense Ratio Comparison

ACWX has a 0.32% expense ratio, which is higher than VEU's 0.04% expense ratio.

Dividends

ACWX vs. VEU - Dividend Comparison

ACWX's dividend yield for the trailing twelve months is around 2.54%, which matches VEU's 2.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ACWX iShares MSCI ACWI ex U.S. ETF	2.54%	2.82%	2.97%	2.96%	2.68%	2.74%	1.88%	3.22%	2.60%	2.40%	2.77%	2.51%
VEU Vanguard FTSE All-World ex-US ETF	2.56%	3.09%	3.24%	3.32%	3.12%	3.08%	2.00%	3.10%	3.27%	2.66%	2.96%	2.95%

Frequently Asked Questions

Can I hold both ACWX and VEU in my portfolio?

With a correlation of 1.00, ACWX and VEU 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 VEU?

ACWX has higher volatility (7.37%) compared to VEU (7.10%). In terms of maximum drawdown, ACWX dropped -60.40% vs VEU's -61.52%.

Which ETF is better, ACWX or VEU?

On 10-year performance, VEU leads with 10.40% vs 10.06% for ACWX. On fees, VEU is cheaper at 0.04% per year. On volatility, VEU has been the lower-risk option at 7.10%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ACWX or VEU?

Over the 10-year period, VEU has performed better with a 10.40% return vs 10.06%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ACWX or VEU?

VEU is cheaper with a 0.04% expense ratio, compared with 0.32% for ACWX.

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

VEU has the higher dividend yield at 2.56%, compared with 2.54% for ACWX.

What is the main difference between ACWX and VEU?

ACWX tracks MSCI All Country World ex-U.S. Index, while VEU tracks FTSE All-World ex US Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.32% for ACWX and 0.04% for VEU.

Which has better risk-adjusted returns?

VEU currently has the higher Sharpe Ratio (1.84 vs 1.79), 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.