DIVI vs. VEU

Last updated Jun 24, 2026

DIVI (Franklin International Core Dividend Tilt Index ETF) and VEU (Vanguard FTSE All-World ex-US ETF) are both Foreign Large Cap Equities funds - DIVI tracks the Morningstar Developed Markets ex-North America Dividend Enhanced Select Index while VEU tracks the FTSE All-World ex US Index. Both are passively managed. Over the past 10 years, DIVI returned 11.73%/yr vs 10.40%/yr for VEU. Their correlation of 0.83 suggests significant overlap in exposure. DIVI charges 0.09%/yr vs 0.04%/yr for VEU.

Performance

DIVI vs. VEU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin International Core Dividend Tilt Index ETF (DIVI) and Vanguard FTSE All-World ex-US ETF (VEU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DIVI achieves a 10.71% return, which is significantly lower than VEU's 13.01% return. Over the past 10 years, DIVI has outperformed VEU with an annualized return of 11.73%, while VEU has yielded a comparatively lower 10.40% annualized return.

DIVI

• 1D: -2.01%
• 1M: -0.05%
• YTD: 10.71%
• 6M: 10.37%
• 1Y: 26.90%
• 3Y*: 18.25%
• 5Y*: 13.30%
• 10Y*: 11.73%

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)

DIVI vs. VEU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DIVI Franklin International Core Dividend Tilt Index ETF	10.71%	34.86%	1.77%	18.97%	-1.21%	16.95%	1.29%	22.98%	-6.73%	13.65%
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 DIVI and VEU is 0.94, 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	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (10Y) Calculated over the trailing 10-year period	0.83
Correlation (All Time) Calculated using the full available price history since Jun 3, 2016	0.83

The correlation between DIVI and VEU shifts across timeframes, from 0.83 (all time) to 0.95 (3 years), reflecting how their relationship changes across market environments.

DIVI vs. VEU - Sectors Allocation Comparison

Sectors	DIVI	VEU
Financial Services	29.7%	22.6%
Industrials	17.3%	15.0%
Technology	12.2%	21.6%
Healthcare	7.3%	6.7%
Consumer Cyclical	7.1%	8.0%
Consumer Defensive	6.4%	4.9%
Basic Materials	5.2%	7.1%
Utilities	4.8%	3.0%
Communication Services	4.1%	4.5%
Energy	3.2%	4.7%
Real Estate	2.1%	1.9%

Return for Risk

DIVI vs. VEU — Risk / Return Rank

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

DIVI

DIVI Risk / Return Rank: 54
DIVI Sharpe Ratio Rank: 54
DIVI Sortino Ratio Rank: 53
DIVI Omega Ratio Rank: 52
DIVI Calmar Ratio Rank: 54
DIVI Martin Ratio Rank: 58

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.

DIVI vs. VEU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin International Core Dividend Tilt Index ETF (DIVI) 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.

	DIVI	VEU	Difference
Sharpe ratio: Return per unit of total volatility	1.76	1.84	-0.08
Sortino ratio: Return per unit of downside risk	2.46	2.52	-0.05
Omega ratio: Gain probability vs. loss probability	1.31	1.34	-0.03
Calmar ratio: Return relative to maximum drawdown	2.56	2.64	-0.08
Martin ratio: Return relative to average drawdown	9.86	10.12	-0.26

DIVI vs. VEU - Sharpe Ratio Comparison

The current DIVI Sharpe Ratio is 1.76, which is comparable to the VEU Sharpe Ratio of 1.84. The chart below compares the historical Sharpe Ratios of DIVI 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

DIVI vs. VEU - Drawdown Comparison

The maximum DIVI drawdown since its inception was -27.76%, smaller than the maximum VEU drawdown of -61.52%. Use the drawdown chart below to compare losses from any high point for DIVI and VEU.

Drawdown Indicators

	DIVI	VEU	Difference
Max Drawdown Largest peak-to-trough decline	-27.76%	-61.52%	+33.76%
Max Drawdown (1Y) Largest decline over 1 year	-10.54%	-11.43%	+0.89%
Max Drawdown (3Y) Largest decline over 3 years	-14.58%	-13.69%	-0.89%
Max Drawdown (5Y) Largest decline over 5 years	-18.53%	-29.14%	+10.61%
Max Drawdown (10Y) Largest decline over 10 years	-27.76%	-34.98%	+7.22%
Current Drawdown Current decline from peak	-2.01%	-3.06%	+1.05%
Average Drawdown Average peak-to-trough decline	-3.62%	-13.10%	+9.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.73%	2.98%	-0.25%

Volatility

DIVI vs. VEU - Volatility Comparison

The current volatility for Franklin International Core Dividend Tilt Index ETF (DIVI) is 5.19%, while Vanguard FTSE All-World ex-US ETF (VEU) has a volatility of 7.10%. This indicates that DIVI experiences smaller price fluctuations and is considered to be less risky than VEU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DIVI	VEU	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.19%	7.10%	-1.91%
Volatility (6M) Calculated over the trailing 6-month period	12.95%	14.47%	-1.52%
Volatility (1Y) Calculated over the trailing 1-year period	15.34%	16.44%	-1.10%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.43%	16.30%	-0.87%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.36%	17.08%	-0.72%

DIVI vs. VEU - Expense Ratio Comparison

DIVI has a 0.09% expense ratio, which is higher than VEU's 0.04% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

DIVI vs. VEU - Dividend Comparison

DIVI's dividend yield for the trailing twelve months is around 2.05%, less than VEU's 2.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DIVI Franklin International Core Dividend Tilt Index ETF	2.05%	3.76%	4.39%	3.17%	6.03%	2.77%	8.04%	1.61%	5.67%	5.22%	11.56%	0.00%
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 DIVI and VEU in my portfolio?

With a correlation of 0.94, DIVI 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, DIVI or VEU?

VEU has higher volatility (7.10%) compared to DIVI (5.19%). In terms of maximum drawdown, DIVI dropped -27.76% vs VEU's -61.52%.

Which ETF is better, DIVI or VEU?

On 10-year performance, DIVI leads with 11.73% vs 10.40% for VEU. On fees, VEU is cheaper at 0.04% per year. On volatility, DIVI has been the lower-risk option at 5.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DIVI or VEU?

Over the 10-year period, DIVI has performed better with a 11.73% return vs 10.40%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DIVI or VEU?

VEU is cheaper with a 0.04% expense ratio, compared with 0.09% for DIVI.

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

VEU has the higher dividend yield at 2.56%, compared with 2.05% for DIVI.

What is the main difference between DIVI and VEU?

DIVI tracks Morningstar Developed Markets ex-North America Dividend Enhanced Select Index, while VEU tracks FTSE All-World ex US Index. They also come from different issuers: Franklin Templeton and Vanguard. Their fees differ too: 0.09% for DIVI and 0.04% for VEU.

Which has better risk-adjusted returns?

VEU currently has the higher Sharpe Ratio (1.84 vs 1.76), 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.