HEZU vs. VTI

Last updated Jun 16, 2026

HEZU (iShares Currency Hedged MSCI Eurozone ETF) and VTI (Vanguard Total Stock Market ETF) are both exchange-traded funds - HEZU is a Europe Equities fund tracking the MSCI EMU 100% USD Hedged Index, while VTI is a Large Cap Blend Equities fund tracking the CRSP US Total Market Index. Both are passively managed. Over the past 10 years, HEZU returned 12.74%/yr vs 15.23%/yr for VTI. A 0.76 correlation means they provide meaningful diversification when combined. HEZU charges 0.52%/yr vs 0.03%/yr for VTI.

Performance

HEZU vs. VTI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Currency Hedged MSCI Eurozone ETF (HEZU) and Vanguard Total Stock Market ETF (VTI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HEZU achieves a 12.90% return, which is significantly higher than VTI's 11.46% return. Over the past 10 years, HEZU has underperformed VTI with an annualized return of 12.74%, while VTI has yielded a comparatively higher 15.23% annualized return.

HEZU

• 1D: 0.71%
• 1M: 7.52%
• YTD: 12.90%
• 6M: 13.50%
• 1Y: 25.79%
• 3Y*: 18.13%
• 5Y*: 12.82%
• 10Y*: 12.74%

VTI

• 1D: 1.68%
• 1M: 2.70%
• YTD: 11.46%
• 6M: 11.76%
• 1Y: 28.40%
• 3Y*: 20.94%
• 5Y*: 12.71%
• 10Y*: 15.23%

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

HEZU vs. VTI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HEZU iShares Currency Hedged MSCI Eurozone ETF	12.90%	25.93%	10.63%	22.98%	-9.54%	23.51%	0.52%	29.48%	-10.23%	14.26%
VTI Vanguard Total Stock Market ETF	11.46%	17.10%	23.81%	26.05%	-19.52%	25.68%	21.08%	30.67%	-5.23%	21.21%

Correlation

The correlation between HEZU and VTI is 0.74, 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	0.74
Correlation (3Y) Calculated over the trailing 3-year period	0.69
Correlation (5Y) Calculated over the trailing 5-year period	0.75
Correlation (10Y) Calculated over the trailing 10-year period	0.76
Correlation (All Time) Calculated using the full available price history since Aug 7, 2014	0.76

The correlation between HEZU and VTI has been stable across timeframes, ranging from 0.69 to 0.76 - a consistent structural relationship.

HEZU vs. VTI - Sectors Allocation Comparison

Sectors	HEZU	VTI
Financial Services	23.8%	11.9%
Industrials	21.0%	9.5%
Technology	16.1%	33.3%
Consumer Cyclical	8.4%	9.8%
Utilities	6.4%	2.7%
Healthcare	5.6%	9.1%
Consumer Defensive	5.5%	4.7%
Communication Services	4.3%	10.1%
Basic Materials	4.1%	2.0%
Energy	3.9%	3.8%
Real Estate	0.9%	2.4%

Return for Risk

HEZU vs. VTI — Risk / Return Rank

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

HEZU

HEZU Risk / Return Rank: 54
HEZU Sharpe Ratio Rank: 53
HEZU Sortino Ratio Rank: 54
HEZU Omega Ratio Rank: 53
HEZU Calmar Ratio Rank: 51
HEZU Martin Ratio Rank: 57

VTI

VTI Risk / Return Rank: 77
VTI Sharpe Ratio Rank: 79
VTI Sortino Ratio Rank: 77
VTI Omega Ratio Rank: 78
VTI Calmar Ratio Rank: 70
VTI Martin Ratio Rank: 81

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.

HEZU vs. VTI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Currency Hedged MSCI Eurozone ETF (HEZU) and Vanguard Total Stock Market ETF (VTI). 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.

	HEZU	VTI	Difference
Sharpe ratio: Return per unit of total volatility	1.67	2.25	-0.58
Sortino ratio: Return per unit of downside risk	2.42	3.04	-0.61
Omega ratio: Gain probability vs. loss probability	1.31	1.41	-0.10
Calmar ratio: Return relative to maximum drawdown	2.36	3.20	-0.83
Martin ratio: Return relative to average drawdown	9.29	14.35	-5.06

HEZU vs. VTI - Sharpe Ratio Comparison

The current HEZU Sharpe Ratio is 1.67, which is comparable to the VTI Sharpe Ratio of 2.25. The chart below compares the historical Sharpe Ratios of HEZU and VTI, 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

HEZU vs. VTI - Drawdown Comparison

The maximum HEZU drawdown since its inception was -38.80%, smaller than the maximum VTI drawdown of -55.45%. Use the drawdown chart below to compare losses from any high point for HEZU and VTI.

Drawdown Indicators

	HEZU	VTI	Difference
Max Drawdown Largest peak-to-trough decline	-38.80%	-55.45%	+16.65%
Max Drawdown (1Y) Largest decline over 1 year	-10.95%	-8.92%	-2.03%
Max Drawdown (3Y) Largest decline over 3 years	-14.83%	-19.30%	+4.47%
Max Drawdown (5Y) Largest decline over 5 years	-22.79%	-25.36%	+2.57%
Max Drawdown (10Y) Largest decline over 10 years	-38.80%	-35.00%	-3.80%
Current Drawdown Current decline from peak	0.00%	-0.49%	+0.49%
Average Drawdown Average peak-to-trough decline	-5.82%	-8.02%	+2.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.78%	1.98%	+0.80%

Volatility

HEZU vs. VTI - Volatility Comparison

iShares Currency Hedged MSCI Eurozone ETF (HEZU) has a higher volatility of 5.72% compared to Vanguard Total Stock Market ETF (VTI) at 4.74%. This indicates that HEZU's price experiences larger fluctuations and is considered to be riskier than VTI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HEZU	VTI	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.72%	4.74%	+0.98%
Volatility (6M) Calculated over the trailing 6-month period	13.13%	9.94%	+3.19%
Volatility (1Y) Calculated over the trailing 1-year period	15.51%	12.69%	+2.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.59%	17.49%	-0.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.43%	18.34%	+0.09%

HEZU vs. VTI - Expense Ratio Comparison

HEZU has a 0.52% expense ratio, which is higher than VTI's 0.03% expense ratio.

Dividends

HEZU vs. VTI - Dividend Comparison

HEZU's dividend yield for the trailing twelve months is around 2.59%, more than VTI's 1.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HEZU iShares Currency Hedged MSCI Eurozone ETF	2.59%	2.92%	2.77%	2.52%	23.26%	2.25%	2.32%	5.40%	3.48%	1.92%	3.11%	2.68%
VTI Vanguard Total Stock Market ETF	1.01%	1.12%	1.27%	1.44%	1.66%	1.21%	1.42%	1.78%	2.04%	1.71%	1.92%	1.98%

Frequently Asked Questions

Can I hold both HEZU and VTI in my portfolio?

HEZU and VTI have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HEZU or VTI?

HEZU has higher volatility (5.72%) compared to VTI (4.74%). In terms of maximum drawdown, HEZU dropped -38.80% vs VTI's -55.45%.

Which ETF is better, HEZU or VTI?

On 10-year performance, VTI leads with 15.23% vs 12.74% for HEZU. On fees, VTI is cheaper at 0.03% per year. On volatility, VTI has been the lower-risk option at 4.74%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HEZU or VTI?

Over the 10-year period, VTI has performed better with a 15.23% return vs 12.74%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HEZU or VTI?

VTI is cheaper with a 0.03% expense ratio, compared with 0.52% for HEZU.

Which ETF pays a higher dividend yield, HEZU or VTI?

HEZU has the higher dividend yield at 2.59%, compared with 1.01% for VTI.

What is the main difference between HEZU and VTI?

HEZU is categorized as Europe Equities, while VTI is Large Cap Blend Equities. HEZU tracks MSCI EMU 100% USD Hedged Index, while VTI tracks CRSP US Total Market Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.52% for HEZU and 0.03% for VTI.

Which has better risk-adjusted returns?

VTI currently has the higher Sharpe Ratio (2.25 vs 1.67), 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.