EFG vs. VEU

Last updated Jun 4, 2026

EFG (iShares MSCI EAFE Growth ETF) and VEU (Vanguard FTSE All-World ex-US ETF) are both Foreign Large Cap Equities funds - EFG tracks the MSCI EAFE Growth Index while VEU tracks the FTSE All-World ex US Index. Both are passively managed. Over the past 10 years, EFG returned 7.96%/yr vs 9.94%/yr for VEU. Their correlation of 0.95 suggests significant overlap in exposure. EFG charges 0.40%/yr vs 0.04%/yr for VEU.

Performance

EFG vs. VEU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI EAFE Growth ETF (EFG) 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, EFG achieves a 7.91% return, which is significantly lower than VEU's 14.60% return. Over the past 10 years, EFG has underperformed VEU with an annualized return of 7.96%, while VEU has yielded a comparatively higher 9.94% annualized return.

EFG

• 1D: -0.78%
• 1M: 4.62%
• YTD: 7.91%
• 6M: 9.06%
• 1Y: 14.40%
• 3Y*: 10.91%
• 5Y*: 4.23%
• 10Y*: 7.96%

VEU

• 1D: -0.98%
• 1M: 5.07%
• YTD: 14.60%
• 6M: 17.34%
• 1Y: 32.37%
• 3Y*: 19.62%
• 5Y*: 8.67%
• 10Y*: 9.94%

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

EFG vs. VEU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EFG iShares MSCI EAFE Growth ETF	7.91%	20.70%	1.53%	17.55%	-23.12%	11.01%	17.85%	27.47%	-12.93%	28.86%
VEU Vanguard FTSE All-World ex-US ETF	14.60%	32.35%	5.56%	15.84%	-15.58%	8.27%	11.10%	21.83%	-14.18%	27.40%

Correlation

The correlation between EFG and VEU is 0.96 - 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	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.94
Correlation (All Time) Calculated using the full available price history since Mar 9, 2007	0.95

The correlation between EFG and VEU has been stable across timeframes, ranging from 0.94 to 0.96 - a consistent structural relationship.

EFG vs. VEU - Sectors Allocation Comparison

Sectors	EFG	VEU
Industrials	29.6%	15.7%
Technology	18.1%	18.5%
Healthcare	14.2%	7.1%
Consumer Cyclical	10.7%	8.2%
Financial Services	10.6%	23.3%
Consumer Defensive	5.1%	5.1%
Communication Services	4.8%	4.6%
Basic Materials	4.6%	7.1%
Utilities	1.1%	3.2%
Real Estate	1.0%	2.0%
Energy	0.2%	5.2%

Return for Risk

EFG vs. VEU — Risk / Return Rank

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

EFG

EFG Risk / Return Rank: 25
EFG Sharpe Ratio Rank: 23
EFG Sortino Ratio Rank: 24
EFG Omega Ratio Rank: 22
EFG Calmar Ratio Rank: 24
EFG Martin Ratio Rank: 29

VEU

VEU Risk / Return Rank: 60
VEU Sharpe Ratio Rank: 62
VEU Sortino Ratio Rank: 61
VEU Omega Ratio Rank: 62
VEU Calmar Ratio Rank: 56
VEU 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.

EFG vs. VEU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI EAFE Growth ETF (EFG) 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.

	EFG	VEU	Difference
Sharpe ratio: Return per unit of total volatility	0.85	2.13	-1.28
Sortino ratio: Return per unit of downside risk	1.32	2.94	-1.62
Omega ratio: Gain probability vs. loss probability	1.16	1.39	-0.23
Calmar ratio: Return relative to maximum drawdown	1.13	2.85	-1.71
Martin ratio: Return relative to average drawdown	4.17	11.06	-6.89
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EFG vs. VEU - Sharpe Ratio Comparison

The current EFG Sharpe Ratio is 0.85, which is lower than the VEU Sharpe Ratio of 2.13. The chart below compares the historical Sharpe Ratios of EFG 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.

Sharpe Ratios by Period

	EFG	VEU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.85	2.13	-1.28
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.23	0.54	-0.31
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.45	0.58	-0.13
Sharpe Ratio (All Time) Calculated using the full available price history	0.29	0.25	+0.04

Drawdowns

EFG vs. VEU - Drawdown Comparison

The maximum EFG drawdown since its inception was -58.40%, smaller than the maximum VEU drawdown of -61.52%. Use the drawdown chart below to compare losses from any high point for EFG and VEU.

Drawdown Indicators

	EFG	VEU	Difference
Max Drawdown Largest peak-to-trough decline	-58.40%	-61.52%	+3.12%
Max Drawdown (1Y) Largest decline over 1 year	-12.78%	-11.43%	-1.35%
Max Drawdown (3Y) Largest decline over 3 years	-16.87%	-13.69%	-3.18%
Max Drawdown (5Y) Largest decline over 5 years	-35.78%	-29.31%	-6.47%
Max Drawdown (10Y) Largest decline over 10 years	-35.78%	-34.98%	-0.80%
Current Drawdown Current decline from peak	-0.78%	-0.98%	+0.20%
Average Drawdown Average peak-to-trough decline	-12.16%	-13.13%	+0.97%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.46%	2.93%	+0.53%

Volatility

EFG vs. VEU - Volatility Comparison

iShares MSCI EAFE Growth ETF (EFG) has a higher volatility of 5.88% compared to Vanguard FTSE All-World ex-US ETF (VEU) at 5.59%. This indicates that EFG's price experiences larger fluctuations and is considered to be riskier than VEU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EFG	VEU	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.88%	5.59%	+0.29%
Volatility (6M) Calculated over the trailing 6-month period	14.36%	13.04%	+1.32%
Volatility (1Y) Calculated over the trailing 1-year period	17.08%	15.29%	+1.79%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.11%	16.07%	+2.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.69%	17.21%	+0.48%

EFG vs. VEU - Expense Ratio Comparison

EFG has a 0.40% expense ratio, which is higher than VEU's 0.04% expense ratio.

Dividends

EFG vs. VEU - Dividend Comparison

EFG's dividend yield for the trailing twelve months is around 2.34%, less than VEU's 2.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EFG iShares MSCI EAFE Growth ETF	2.34%	2.53%	1.64%	1.63%	1.27%	1.54%	0.85%	1.69%	1.98%	1.56%	2.20%	1.75%
VEU Vanguard FTSE All-World ex-US ETF	2.61%	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 EFG and VEU in my portfolio?

With a correlation of 0.96, EFG 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, EFG or VEU?

EFG has higher volatility (5.88%) compared to VEU (5.59%). In terms of maximum drawdown, EFG dropped -58.40% vs VEU's -61.52%.

Which ETF is better, EFG or VEU?

On 10-year performance, VEU leads with 9.94% vs 7.96% for EFG. On fees, VEU is cheaper at 0.04% per year. On volatility, VEU has been the lower-risk option at 5.59%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EFG or VEU?

Over the 10-year period, VEU has performed better with a 9.94% return vs 7.96%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EFG or VEU?

VEU is cheaper with a 0.04% expense ratio, compared with 0.40% for EFG.

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

VEU has the higher dividend yield at 2.61%, compared with 2.34% for EFG.

What is the main difference between EFG and VEU?

EFG tracks MSCI EAFE Growth Index, while VEU tracks FTSE All-World ex US Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.40% for EFG and 0.04% for VEU.

Which has better risk-adjusted returns?

VEU currently has the higher Sharpe Ratio (2.13 vs 0.85), 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.