EPP vs. VEA

Last updated Jun 4, 2026

EPP (iShares MSCI Pacific ex Japan ETF) and VEA (Vanguard FTSE Developed Markets ETF) are both exchange-traded funds - EPP is a Asia Pacific Equities fund tracking the MSCI Pacific ex-Japan Index, while VEA is a Foreign Large Cap Equities fund tracking the FTSE Developed All Cap ex US Index. Both are passively managed. Over the past 10 years, EPP returned 7.60%/yr vs 10.17%/yr for VEA. Their correlation of 0.86 suggests significant overlap in exposure. EPP charges 0.48%/yr vs 0.03%/yr for VEA.

Performance

EPP vs. VEA - Performance Comparison

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

Returns By Period

In the year-to-date period, EPP achieves a 9.57% return, which is significantly lower than VEA's 14.92% return. Over the past 10 years, EPP has underperformed VEA with an annualized return of 7.60%, while VEA has yielded a comparatively higher 10.17% annualized return.

EPP

• 1D: -1.07%
• 1M: 1.12%
• YTD: 9.57%
• 6M: 10.96%
• 1Y: 17.40%
• 3Y*: 13.26%
• 5Y*: 4.65%
• 10Y*: 7.60%

VEA

• 1D: -0.90%
• 1M: 5.54%
• YTD: 14.92%
• 6M: 18.15%
• 1Y: 32.48%
• 3Y*: 19.77%
• 5Y*: 9.60%
• 10Y*: 10.17%

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

EPP vs. VEA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EPP iShares MSCI Pacific ex Japan ETF	9.57%	19.70%	4.76%	5.76%	-6.59%	4.26%	6.04%	18.30%	-10.78%	26.05%
VEA Vanguard FTSE Developed Markets ETF	14.92%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	26.42%

Correlation

The correlation between EPP and VEA is 0.83, 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	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.85
Correlation (5Y) Calculated over the trailing 5-year period	0.87
Correlation (10Y) Calculated over the trailing 10-year period	0.87
Correlation (All Time) Calculated using the full available price history since Jul 27, 2007	0.86

The correlation between EPP and VEA has been stable across timeframes, ranging from 0.83 to 0.87 - a consistent structural relationship.

EPP vs. VEA - Sectors Allocation Comparison

Sectors	EPP	VEA
Financial Services	46.0%	23.3%
Basic Materials	14.6%	7.5%
Industrials	8.6%	19.2%
Real Estate	7.8%	2.7%
Consumer Cyclical	6.0%	7.5%
Healthcare	3.7%	8.2%
Utilities	3.6%	3.3%
Consumer Defensive	3.0%	5.6%
Energy	2.9%	5.4%
Communication Services	2.7%	3.4%
Technology	1.1%	13.8%

Return for Risk

EPP vs. VEA — Risk / Return Rank

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

EPP

EPP Risk / Return Rank: 35
EPP Sharpe Ratio Rank: 33
EPP Sortino Ratio Rank: 32
EPP Omega Ratio Rank: 32
EPP Calmar Ratio Rank: 40
EPP Martin Ratio Rank: 39

VEA

VEA Risk / Return Rank: 59
VEA Sharpe Ratio Rank: 60
VEA Sortino Ratio Rank: 60
VEA Omega Ratio Rank: 60
VEA Calmar Ratio Rank: 55
VEA Martin Ratio Rank: 60

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.

EPP vs. VEA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Pacific ex Japan ETF (EPP) 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.

	EPP	VEA	Difference
Sharpe ratio: Return per unit of total volatility	1.20	2.09	-0.88
Sortino ratio: Return per unit of downside risk	1.74	2.87	-1.13
Omega ratio: Gain probability vs. loss probability	1.22	1.38	-0.16
Calmar ratio: Return relative to maximum drawdown	1.99	2.81	-0.82
Martin ratio: Return relative to average drawdown	6.27	10.94	-4.67
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EPP vs. VEA - Sharpe Ratio Comparison

The current EPP Sharpe Ratio is 1.20, which is lower than the VEA Sharpe Ratio of 2.09. The chart below compares the historical Sharpe Ratios of EPP 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.

Sharpe Ratios by Period

	EPP	VEA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.20	2.09	-0.88
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.27	0.58	-0.31
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.40	0.59	-0.19
Sharpe Ratio (All Time) Calculated using the full available price history	0.39	0.25	+0.14

Drawdowns

EPP vs. VEA - Drawdown Comparison

The maximum EPP drawdown since its inception was -66.01%, which is greater than VEA's maximum drawdown of -60.68%. Use the drawdown chart below to compare losses from any high point for EPP and VEA.

Drawdown Indicators

	EPP	VEA	Difference
Max Drawdown Largest peak-to-trough decline	-66.01%	-60.68%	-5.33%
Max Drawdown (1Y) Largest decline over 1 year	-8.79%	-11.63%	+2.84%
Max Drawdown (3Y) Largest decline over 3 years	-19.29%	-13.45%	-5.84%
Max Drawdown (5Y) Largest decline over 5 years	-26.31%	-29.71%	+3.40%
Max Drawdown (10Y) Largest decline over 10 years	-39.30%	-35.73%	-3.57%
Current Drawdown Current decline from peak	-2.79%	-0.90%	-1.89%
Average Drawdown Average peak-to-trough decline	-10.62%	-13.29%	+2.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.78%	2.98%	-0.20%

Volatility

EPP vs. VEA - Volatility Comparison

The current volatility for iShares MSCI Pacific ex Japan ETF (EPP) is 4.65%, while Vanguard FTSE Developed Markets ETF (VEA) has a volatility of 5.66%. This indicates that EPP experiences smaller price fluctuations and is considered to be less risky than VEA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EPP	VEA	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.65%	5.66%	-1.01%
Volatility (6M) Calculated over the trailing 6-month period	11.94%	13.32%	-1.38%
Volatility (1Y) Calculated over the trailing 1-year period	14.51%	15.66%	-1.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.41%	16.55%	+0.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.11%	17.36%	+1.75%

EPP vs. VEA - Expense Ratio Comparison

EPP has a 0.48% expense ratio, which is higher than VEA's 0.03% expense ratio.

Dividends

EPP vs. VEA - Dividend Comparison

EPP's dividend yield for the trailing twelve months is around 3.44%, more than VEA's 2.62% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EPP iShares MSCI Pacific ex Japan ETF	3.44%	3.77%	3.81%	4.10%	4.37%	4.58%	2.28%	3.89%	5.00%	4.15%	3.96%	4.90%
VEA Vanguard FTSE Developed Markets ETF	2.62%	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 EPP and VEA in my portfolio?

EPP and VEA have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EPP or VEA?

VEA has higher volatility (5.66%) compared to EPP (4.65%). In terms of maximum drawdown, EPP dropped -66.01% vs VEA's -60.68%.

Which ETF is better, EPP or VEA?

On 10-year performance, VEA leads with 10.17% vs 7.60% for EPP. On fees, VEA is cheaper at 0.03% per year. On volatility, EPP has been the lower-risk option at 4.65%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EPP or VEA?

Over the 10-year period, VEA has performed better with a 10.17% return vs 7.60%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EPP or VEA?

VEA is cheaper with a 0.03% expense ratio, compared with 0.48% for EPP.

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

EPP has the higher dividend yield at 3.44%, compared with 2.62% for VEA.

What is the main difference between EPP and VEA?

EPP is categorized as Asia Pacific Equities, while VEA is Foreign Large Cap Equities. EPP tracks MSCI Pacific ex-Japan Index, while VEA tracks FTSE Developed All Cap ex US Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.48% for EPP and 0.03% for VEA.

Which has better risk-adjusted returns?

VEA currently has the higher Sharpe Ratio (2.09 vs 1.20), 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.