HDEF vs. VEU

Last updated Jul 14, 2026

HDEF (Xtrackers MSCI EAFE High Dividend Yield Equity ETF) and VEU (Vanguard FTSE All-World ex-US ETF) are both Foreign Large Cap Equities funds - HDEF tracks the MSCI EAFE High Dividend Yield US Dollar Hedged Index while VEU tracks the FTSE All-World ex US Index. Both are passively managed. Over the past 10 years, HDEF returned 8.70%/yr vs 9.62%/yr for VEU. A 0.74 correlation means they provide meaningful diversification when combined. HDEF charges 0.20%/yr vs 0.04%/yr for VEU.

Performance

HDEF vs. VEU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Xtrackers MSCI EAFE High Dividend Yield Equity ETF (HDEF) 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, HDEF achieves a 8.35% return, which is significantly lower than VEU's 12.16% return. Over the past 10 years, HDEF has underperformed VEU with an annualized return of 8.70%, while VEU has yielded a comparatively higher 9.62% annualized return.

HDEF

• 1D: -0.09%
• 1M: 1.63%
• 6M: 8.04%
• YTD: 8.35%
• 1Y: 17.39%
• 3Y*: 16.34%
• 5Y*: 10.88%
• 10Y*: 8.70%

VEU

• 1D: -1.80%
• 1M: -1.68%
• 6M: 7.61%
• YTD: 12.16%
• 1Y: 25.76%
• 3Y*: 17.28%
• 5Y*: 8.61%
• 10Y*: 9.62%

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

HDEF vs. VEU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HDEF Xtrackers MSCI EAFE High Dividend Yield Equity ETF	8.35%	33.01%	2.85%	18.53%	-2.51%	6.95%	-1.90%	25.02%	-13.74%	9.89%
VEU Vanguard FTSE All-World ex-US ETF	12.16%	32.35%	5.56%	15.84%	-15.58%	8.27%	11.10%	21.83%	-14.18%	27.40%

Correlation

The correlation between HDEF and VEU is 0.64, 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	0.64
Correlation (3Y) Calculated over the trailing 3-year period	0.78
Correlation (5Y) Calculated over the trailing 5-year period	0.83
Correlation (10Y) Calculated over the trailing 10-year period	0.79
Correlation (All Time) Calculated using the full available price history since Aug 18, 2015	0.74

The correlation between HDEF and VEU shifts across timeframes, from 0.64 (1 year) to 0.83 (5 years), reflecting how their relationship changes across market environments.

HDEF vs. VEU - Sectors Allocation Comparison

Sectors	HDEF	VEU
Financial Services	26.5%	22.6%
Consumer Defensive	19.5%	4.9%
Healthcare	17.0%	6.7%
Energy	11.4%	4.7%
Utilities	7.8%	3.0%
Industrials	7.7%	15.0%
Consumer Cyclical	4.1%	8.0%
Communication Services	3.9%	4.5%
Real Estate	0.8%	1.9%
Basic Materials	0.6%	7.1%
Technology	0.6%	21.6%

Return for Risk

HDEF vs. VEU — Risk / Return Rank

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

HDEF

HDEF Risk / Return Rank: 53
HDEF Sharpe Ratio Rank: 55
HDEF Sortino Ratio Rank: 55
HDEF Omega Ratio Rank: 55
HDEF Calmar Ratio Rank: 55
HDEF Martin Ratio Rank: 47

VEU

VEU Risk / Return Rank: 58
VEU Sharpe Ratio Rank: 58
VEU Sortino Ratio Rank: 56
VEU Omega Ratio Rank: 59
VEU Calmar Ratio Rank: 57
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.

HDEF vs. VEU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Xtrackers MSCI EAFE High Dividend Yield Equity ETF (HDEF) 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.

	HDEF	VEU	Difference
Sharpe ratio: Return per unit of total volatility	1.48	1.55	-0.08
Sortino ratio: Return per unit of downside risk	2.12	2.16	-0.04
Omega ratio: Gain probability vs. loss probability	1.27	1.29	-0.01
Calmar ratio: Return relative to maximum drawdown	2.18	2.26	-0.09
Martin ratio: Return relative to average drawdown	6.12	8.51	-2.39

HDEF vs. VEU - Sharpe Ratio Comparison

The current HDEF Sharpe Ratio is 1.48, which is comparable to the VEU Sharpe Ratio of 1.55. The chart below compares the historical Sharpe Ratios of HDEF 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

HDEF vs. VEU - Drawdown Comparison

The maximum HDEF drawdown since its inception was -36.43%, smaller than the maximum VEU drawdown of -61.52%. Use the drawdown chart below to compare losses from any high point for HDEF and VEU.

Drawdown Indicators

	HDEF	VEU	Difference
Max Drawdown Largest peak-to-trough decline	-36.43%	-61.52%	+25.09%
Max Drawdown (1Y) Largest decline over 1 year	-8.03%	-11.43%	+3.40%
Max Drawdown (3Y) Largest decline over 3 years	-11.15%	-13.69%	+2.54%
Max Drawdown (5Y) Largest decline over 5 years	-23.63%	-29.14%	+5.51%
Max Drawdown (10Y) Largest decline over 10 years	-36.43%	-34.98%	-1.45%
Current Drawdown Current decline from peak	-1.73%	-3.79%	+2.06%
Average Drawdown Average peak-to-trough decline	-5.04%	-13.07%	+8.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.85%	3.04%	-0.19%

Volatility

HDEF vs. VEU - Volatility Comparison

The current volatility for Xtrackers MSCI EAFE High Dividend Yield Equity ETF (HDEF) is 3.46%, while Vanguard FTSE All-World ex-US ETF (VEU) has a volatility of 6.27%. This indicates that HDEF 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

	HDEF	VEU	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.46%	6.27%	-2.81%
Volatility (6M) Calculated over the trailing 6-month period	9.61%	14.76%	-5.15%
Volatility (1Y) Calculated over the trailing 1-year period	11.85%	16.68%	-4.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.15%	16.32%	-2.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.12%	17.04%	-0.92%

HDEF vs. VEU - Expense Ratio Comparison

HDEF has a 0.20% 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

HDEF vs. VEU - Dividend Comparison

HDEF's dividend yield for the trailing twelve months is around 3.84%, more than VEU's 2.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HDEF Xtrackers MSCI EAFE High Dividend Yield Equity ETF	3.84%	3.88%	4.53%	4.38%	5.41%	4.76%	3.93%	4.20%	3.55%	3.38%	9.53%	1.87%
VEU Vanguard FTSE All-World ex-US ETF	2.58%	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 HDEF and VEU in my portfolio?

HDEF and VEU have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HDEF or VEU?

VEU has higher volatility (6.27%) compared to HDEF (3.46%). In terms of maximum drawdown, HDEF dropped -36.43% vs VEU's -61.52%.

Which ETF is better, HDEF or VEU?

On 10-year performance, VEU leads with 9.62% vs 8.70% for HDEF. On fees, VEU is cheaper at 0.04% per year. On volatility, HDEF has been the lower-risk option at 3.46%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HDEF or VEU?

Over the 10-year period, VEU has performed better with a 9.62% return vs 8.70%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HDEF or VEU?

VEU is cheaper with a 0.04% expense ratio, compared with 0.20% for HDEF.

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

HDEF has the higher dividend yield at 3.84%, compared with 2.58% for VEU.

What is the main difference between HDEF and VEU?

HDEF tracks MSCI EAFE High Dividend Yield US Dollar Hedged Index, while VEU tracks FTSE All-World ex US Index. They also come from different issuers: Deutsche Bank and Vanguard. Their fees differ too: 0.20% for HDEF and 0.04% for VEU.

Which has better risk-adjusted returns?

VEU currently has the higher Sharpe Ratio (1.55 vs 1.48), 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.