EZU vs. VEA

Last updated Jun 3, 2026

EZU (iShares MSCI Eurozone ETF) and VEA (Vanguard FTSE Developed Markets ETF) are both exchange-traded funds - EZU is a Europe Equities fund tracking the MSCI EMU, 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, EZU returned 9.96%/yr vs 10.27%/yr for VEA. Their correlation of 0.94 suggests significant overlap in exposure. EZU charges 0.51%/yr vs 0.03%/yr for VEA.

Performance

EZU vs. VEA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Eurozone ETF (EZU) 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, EZU achieves a 8.17% return, which is significantly lower than VEA's 15.96% return. Both investments have delivered pretty close results over the past 10 years, with EZU having a 9.96% annualized return and VEA not far ahead at 10.27%.

EZU

• 1D: 0.73%
• 1M: 3.97%
• YTD: 8.17%
• 6M: 11.21%
• 1Y: 19.95%
• 3Y*: 18.60%
• 5Y*: 9.36%
• 10Y*: 9.96%

VEA

• 1D: 0.63%
• 1M: 5.24%
• YTD: 15.96%
• 6M: 19.86%
• 1Y: 32.71%
• 3Y*: 20.13%
• 5Y*: 10.01%
• 10Y*: 10.27%

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

EZU vs. VEA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EZU iShares MSCI Eurozone ETF	8.17%	40.00%	2.23%	23.44%	-17.25%	13.92%	7.62%	23.27%	-16.76%	27.89%
VEA Vanguard FTSE Developed Markets ETF	15.96%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	26.42%

Correlation

The correlation between EZU and VEA is 0.92, 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	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.92
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 Jul 27, 2007	0.94

The correlation between EZU and VEA has been stable across timeframes, ranging from 0.92 to 0.94 - a consistent structural relationship.

EZU vs. VEA - Sectors Allocation Comparison

Sectors	EZU	VEA
Financial Services	24.2%	23.3%
Industrials	21.3%	19.2%
Technology	14.6%	13.8%
Consumer Cyclical	8.3%	7.5%
Utilities	6.8%	3.3%
Healthcare	5.8%	8.2%
Consumer Defensive	5.6%	5.6%
Energy	4.2%	5.4%
Basic Materials	4.1%	7.5%
Communication Services	4.1%	3.4%
Real Estate	1.0%	2.7%

Return for Risk

EZU vs. VEA — Risk / Return Rank

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

EZU

EZU Risk / Return Rank: 33
EZU Sharpe Ratio Rank: 33
EZU Sortino Ratio Rank: 32
EZU Omega Ratio Rank: 32
EZU Calmar Ratio Rank: 33
EZU Martin Ratio Rank: 37

VEA

VEA Risk / Return Rank: 61
VEA Sharpe Ratio Rank: 62
VEA Sortino Ratio Rank: 61
VEA Omega Ratio Rank: 62
VEA Calmar Ratio Rank: 59
VEA Martin Ratio Rank: 63

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.

EZU vs. VEA - Risk-Adjusted Trends Comparison

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

	EZU	VEA	Difference
Sharpe ratio Return per unit of total volatility	1.19	2.10	-0.91
Sortino ratio Return per unit of downside risk	1.75	2.89	-1.15
Omega ratio Gain probability vs. loss probability	1.22	1.38	-0.16
Calmar ratio Return relative to maximum drawdown	1.62	2.94	-1.32
Martin ratio Return relative to average drawdown	5.88	11.50	-5.62
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EZU vs. VEA - Sharpe Ratio Comparison

The current EZU Sharpe Ratio is 1.19, which is lower than the VEA Sharpe Ratio of 2.10. The chart below compares the historical Sharpe Ratios of EZU 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

	EZU	VEA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.19	2.10	-0.91
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.47	0.61	-0.13
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.49	0.59	-0.11
Sharpe Ratio (All Time) Calculated using the full available price history	0.21	0.25	-0.04

Drawdowns

EZU vs. VEA - Drawdown Comparison

The maximum EZU drawdown since its inception was -65.32%, which is greater than VEA's maximum drawdown of -60.68%. Use the drawdown chart below to compare losses from any high point for EZU and VEA.

Drawdown Indicators

	EZU	VEA	Difference
Max Drawdown Largest peak-to-trough decline	-65.32%	-60.68%	-4.64%
Max Drawdown (1Y) Largest decline over 1 year	-13.06%	-11.63%	-1.43%
Max Drawdown (3Y) Largest decline over 3 years	-15.02%	-13.45%	-1.57%
Max Drawdown (5Y) Largest decline over 5 years	-36.11%	-29.71%	-6.40%
Max Drawdown (10Y) Largest decline over 10 years	-41.37%	-35.73%	-5.64%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-19.24%	-13.29%	-5.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.60%	2.98%	+0.62%

Volatility

EZU vs. VEA - Volatility Comparison

iShares MSCI Eurozone ETF (EZU) has a higher volatility of 6.82% compared to Vanguard FTSE Developed Markets ETF (VEA) at 5.73%. This indicates that EZU's price experiences larger fluctuations and is considered to be riskier than VEA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EZU	VEA	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.82%	5.73%	+1.09%
Volatility (6M) Calculated over the trailing 6-month period	14.07%	13.30%	+0.77%
Volatility (1Y) Calculated over the trailing 1-year period	16.89%	15.66%	+1.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.85%	16.55%	+3.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.49%	17.36%	+3.13%

EZU vs. VEA - Expense Ratio Comparison

EZU has a 0.51% expense ratio, which is higher than VEA's 0.03% expense ratio.

Dividends

EZU vs. VEA - Dividend Comparison

EZU's dividend yield for the trailing twelve months is around 2.64%, more than VEA's 2.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EZU iShares MSCI Eurozone ETF	2.64%	2.85%	2.90%	2.56%	2.79%	2.46%	2.13%	2.84%	3.47%	1.91%	3.07%	2.18%
VEA Vanguard FTSE Developed Markets ETF	2.59%	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 EZU and VEA in my portfolio?

With a correlation of 0.92, EZU and VEA 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, EZU or VEA?

EZU has higher volatility (6.82%) compared to VEA (5.73%). In terms of maximum drawdown, EZU dropped -65.32% vs VEA's -60.68%.

Which ETF is better, EZU or VEA?

On 10-year performance, VEA leads with 10.27% vs 9.96% for EZU. On fees, VEA is cheaper at 0.03% per year. On volatility, VEA has been the lower-risk option at 5.73%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EZU or VEA?

Over the 10-year period, VEA has performed better with a 10.27% return vs 9.96%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EZU or VEA?

VEA is cheaper with a 0.03% expense ratio, compared with 0.51% for EZU.

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

EZU has the higher dividend yield at 2.64%, compared with 2.59% for VEA.

What is the main difference between EZU and VEA?

EZU is categorized as Europe Equities, while VEA is Foreign Large Cap Equities. EZU tracks MSCI EMU, while VEA tracks FTSE Developed All Cap ex US Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.51% for EZU and 0.03% for VEA.

Which has better risk-adjusted returns?

VEA currently has the higher Sharpe Ratio (2.10 vs 1.19), 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.