EIS vs. VEU

Last updated Jun 4, 2026

EIS (iShares MSCI Israel ETF) and VEU (Vanguard FTSE All-World ex-US ETF) are both Foreign Large Cap Equities funds - EIS tracks the MSCI Israel Capped Investable Market Index (Net) while VEU tracks the FTSE All-World ex US Index. Both are passively managed. Over the past 10 years, EIS returned 11.97%/yr vs 9.94%/yr for VEU. A 0.66 correlation means they provide meaningful diversification when combined. EIS charges 0.59%/yr vs 0.04%/yr for VEU.

Performance

EIS vs. VEU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Israel ETF (EIS) 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, EIS achieves a 18.19% return, which is significantly higher than VEU's 14.60% return. Over the past 10 years, EIS has outperformed VEU with an annualized return of 11.97%, while VEU has yielded a comparatively lower 9.94% annualized return.

EIS

• 1D: -1.92%
• 1M: -2.12%
• YTD: 18.19%
• 6M: 22.47%
• 1Y: 54.91%
• 3Y*: 37.61%
• 5Y*: 15.32%
• 10Y*: 11.97%

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)

EIS vs. VEU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EIS iShares MSCI Israel ETF	18.19%	45.11%	34.50%	5.48%	-27.05%	22.83%	12.01%	20.93%	-4.84%	12.77%
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 EIS and VEU is 0.51, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.51
Correlation (3Y) Calculated over the trailing 3-year period	0.56
Correlation (5Y) Calculated over the trailing 5-year period	0.63
Correlation (10Y) Calculated over the trailing 10-year period	0.64
Correlation (All Time) Calculated using the full available price history since Mar 31, 2008	0.66

The correlation between EIS and VEU shifts across timeframes, from 0.51 (1 year) to 0.66 (all time), reflecting how their relationship changes across market environments.

EIS vs. VEU - Sectors Allocation Comparison

Sectors	EIS	VEU
Financial Services	34.6%	23.3%
Technology	17.8%	18.5%
Industrials	10.9%	15.7%
Healthcare	9.8%	7.1%
Real Estate	9.1%	2.0%
Utilities	6.6%	3.2%
Communication Services	2.7%	4.6%
Consumer Cyclical	2.5%	8.2%
Consumer Defensive	2.3%	5.1%
Energy	2.0%	5.2%
Basic Materials	1.8%	7.1%

Return for Risk

EIS vs. VEU — Risk / Return Rank

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

EIS

EIS Risk / Return Rank: 76
EIS Sharpe Ratio Rank: 74
EIS Sortino Ratio Rank: 73
EIS Omega Ratio Rank: 68
EIS Calmar Ratio Rank: 83
EIS Martin Ratio Rank: 82

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.

EIS vs. VEU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Israel ETF (EIS) 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.

	EIS	VEU	Difference
Sharpe ratio: Return per unit of total volatility	2.45	2.13	+0.32
Sortino ratio: Return per unit of downside risk	3.36	2.94	+0.42
Omega ratio: Gain probability vs. loss probability	1.42	1.39	+0.03
Calmar ratio: Return relative to maximum drawdown	4.45	2.85	+1.61
Martin ratio: Return relative to average drawdown	16.54	11.06	+5.49
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EIS vs. VEU - Sharpe Ratio Comparison

The current EIS Sharpe Ratio is 2.45, which is comparable to the VEU Sharpe Ratio of 2.13. The chart below compares the historical Sharpe Ratios of EIS 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

	EIS	VEU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.45	2.13	+0.32
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.71	0.54	+0.16
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.57	0.58	-0.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.33	0.25	+0.07

Drawdowns

EIS vs. VEU - Drawdown Comparison

The maximum EIS drawdown since its inception was -51.94%, smaller than the maximum VEU drawdown of -61.52%. Use the drawdown chart below to compare losses from any high point for EIS and VEU.

Drawdown Indicators

	EIS	VEU	Difference
Max Drawdown Largest peak-to-trough decline	-51.94%	-61.52%	+9.58%
Max Drawdown (1Y) Largest decline over 1 year	-12.40%	-11.43%	-0.97%
Max Drawdown (3Y) Largest decline over 3 years	-24.10%	-13.69%	-10.41%
Max Drawdown (5Y) Largest decline over 5 years	-41.88%	-29.31%	-12.57%
Max Drawdown (10Y) Largest decline over 10 years	-41.88%	-34.98%	-6.90%
Current Drawdown Current decline from peak	-5.56%	-0.98%	-4.58%
Average Drawdown Average peak-to-trough decline	-13.90%	-13.13%	-0.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.33%	2.93%	+0.40%

Volatility

EIS vs. VEU - Volatility Comparison

iShares MSCI Israel ETF (EIS) has a higher volatility of 6.64% compared to Vanguard FTSE All-World ex-US ETF (VEU) at 5.59%. This indicates that EIS'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

	EIS	VEU	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.64%	5.59%	+1.05%
Volatility (6M) Calculated over the trailing 6-month period	16.05%	13.04%	+3.01%
Volatility (1Y) Calculated over the trailing 1-year period	22.56%	15.29%	+7.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.81%	16.07%	+5.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.08%	17.21%	+3.87%

EIS vs. VEU - Expense Ratio Comparison

EIS has a 0.59% expense ratio, which is higher than VEU's 0.04% expense ratio.

Dividends

EIS vs. VEU - Dividend Comparison

EIS's dividend yield for the trailing twelve months is around 1.22%, less than VEU's 2.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EIS iShares MSCI Israel ETF	1.22%	1.44%	1.38%	1.39%	1.66%	1.04%	0.16%	2.06%	0.87%	2.02%	1.78%	2.55%
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 EIS and VEU in my portfolio?

EIS and VEU have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EIS or VEU?

EIS has higher volatility (6.64%) compared to VEU (5.59%). In terms of maximum drawdown, EIS dropped -51.94% vs VEU's -61.52%.

Which ETF is better, EIS or VEU?

On 10-year performance, EIS leads with 11.97% vs 9.94% for VEU. 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, EIS or VEU?

Over the 10-year period, EIS has performed better with a 11.97% return vs 9.94%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EIS or VEU?

VEU is cheaper with a 0.04% expense ratio, compared with 0.59% for EIS.

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

VEU has the higher dividend yield at 2.61%, compared with 1.22% for EIS.

What is the main difference between EIS and VEU?

EIS tracks MSCI Israel Capped Investable Market Index (Net), while VEU tracks FTSE All-World ex US Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.59% for EIS and 0.04% for VEU.

Which has better risk-adjusted returns?

EIS currently has the higher Sharpe Ratio (2.45 vs 2.13), 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.