HFXI vs. VEU

Last updated Jun 4, 2026

HFXI (IQ 50 Percent Hedged FTSE International ETF) and VEU (Vanguard FTSE All-World ex-US ETF) are both Foreign Large Cap Equities funds - HFXI tracks the FTSE Developed ex North America 50% Hedged to USD Index while VEU tracks the FTSE All-World ex US Index. Both are passively managed. Over the past 10 years, HFXI returned 11.47%/yr vs 9.94%/yr for VEU. Their correlation of 0.89 suggests significant overlap in exposure. HFXI charges 0.20%/yr vs 0.04%/yr for VEU.

Performance

HFXI vs. VEU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in IQ 50 Percent Hedged FTSE International ETF (HFXI) 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, HFXI achieves a 17.13% return, which is significantly higher than VEU's 14.60% return. Over the past 10 years, HFXI has outperformed VEU with an annualized return of 11.47%, while VEU has yielded a comparatively lower 9.94% annualized return.

HFXI

• 1D: -0.45%
• 1M: 7.03%
• YTD: 17.13%
• 6M: 20.26%
• 1Y: 35.26%
• 3Y*: 20.46%
• 5Y*: 12.14%
• 10Y*: 11.47%

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)

HFXI vs. VEU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HFXI IQ 50 Percent Hedged FTSE International ETF	17.13%	30.10%	7.58%	19.56%	-10.71%	13.96%	6.88%	23.67%	-12.69%	22.68%
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 HFXI and VEU is 0.95, 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	0.95
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	0.90
Correlation (All Time) Calculated using the full available price history since Jul 23, 2015	0.89

The correlation between HFXI and VEU has been stable across timeframes, ranging from 0.89 to 0.95 - a consistent structural relationship.

HFXI vs. VEU - Sectors Allocation Comparison

Sectors	HFXI	VEU
Financial Services	22.8%	23.3%
Industrials	20.1%	15.7%
Technology	14.5%	18.5%
Healthcare	9.5%	7.1%
Consumer Cyclical	7.7%	8.2%
Consumer Defensive	6.3%	5.1%
Basic Materials	5.9%	7.1%
Energy	3.6%	5.2%
Utilities	3.6%	3.2%
Communication Services	3.5%	4.6%
Real Estate	2.5%	2.0%

Return for Risk

HFXI vs. VEU — Risk / Return Rank

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

HFXI

HFXI Risk / Return Rank: 71
HFXI Sharpe Ratio Rank: 73
HFXI Sortino Ratio Rank: 73
HFXI Omega Ratio Rank: 74
HFXI Calmar Ratio Rank: 65
HFXI Martin Ratio Rank: 70

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.

HFXI vs. VEU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for IQ 50 Percent Hedged FTSE International ETF (HFXI) 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.

	HFXI	VEU	Difference
Sharpe ratio: Return per unit of total volatility	2.41	2.13	+0.28
Sortino ratio: Return per unit of downside risk	3.33	2.94	+0.40
Omega ratio: Gain probability vs. loss probability	1.44	1.39	+0.06
Calmar ratio: Return relative to maximum drawdown	3.27	2.85	+0.42
Martin ratio: Return relative to average drawdown	12.97	11.06	+1.91
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HFXI vs. VEU - Sharpe Ratio Comparison

The current HFXI Sharpe Ratio is 2.41, which is comparable to the VEU Sharpe Ratio of 2.13. The chart below compares the historical Sharpe Ratios of HFXI 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

	HFXI	VEU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.41	2.13	+0.28
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.82	0.54	+0.28
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.69	0.58	+0.11
Sharpe Ratio (All Time) Calculated using the full available price history	0.57	0.25	+0.32

Drawdowns

HFXI vs. VEU - Drawdown Comparison

The maximum HFXI drawdown since its inception was -32.42%, smaller than the maximum VEU drawdown of -61.52%. Use the drawdown chart below to compare losses from any high point for HFXI and VEU.

Drawdown Indicators

	HFXI	VEU	Difference
Max Drawdown Largest peak-to-trough decline	-32.42%	-61.52%	+29.10%
Max Drawdown (1Y) Largest decline over 1 year	-10.84%	-11.43%	+0.59%
Max Drawdown (3Y) Largest decline over 3 years	-13.52%	-13.69%	+0.17%
Max Drawdown (5Y) Largest decline over 5 years	-22.35%	-29.31%	+6.96%
Max Drawdown (10Y) Largest decline over 10 years	-32.42%	-34.98%	+2.56%
Current Drawdown Current decline from peak	-0.45%	-0.98%	+0.53%
Average Drawdown Average peak-to-trough decline	-5.46%	-13.13%	+7.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.72%	2.93%	-0.21%

Volatility

HFXI vs. VEU - Volatility Comparison

IQ 50 Percent Hedged FTSE International ETF (HFXI) and Vanguard FTSE All-World ex-US ETF (VEU) have volatilities of 5.46% and 5.59%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HFXI	VEU	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.46%	5.59%	-0.13%
Volatility (6M) Calculated over the trailing 6-month period	12.40%	13.04%	-0.64%
Volatility (1Y) Calculated over the trailing 1-year period	14.69%	15.29%	-0.60%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.85%	16.07%	-1.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.63%	17.21%	-0.58%

HFXI vs. VEU - Expense Ratio Comparison

HFXI 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

HFXI vs. VEU - Dividend Comparison

HFXI's dividend yield for the trailing twelve months is around 3.84%, more than VEU's 2.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HFXI IQ 50 Percent Hedged FTSE International ETF	3.84%	4.19%	2.68%	2.49%	4.65%	3.10%	2.00%	3.19%	4.33%	2.56%	2.71%	0.78%
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 HFXI and VEU in my portfolio?

With a correlation of 0.95, HFXI and VEU 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, HFXI or VEU?

VEU has higher volatility (5.59%) compared to HFXI (5.46%). In terms of maximum drawdown, HFXI dropped -32.42% vs VEU's -61.52%.

Which ETF is better, HFXI or VEU?

On 10-year performance, HFXI leads with 11.47% vs 9.94% for VEU. On fees, VEU is cheaper at 0.04% per year. On volatility, HFXI has been the lower-risk option at 5.46%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HFXI or VEU?

Over the 10-year period, HFXI has performed better with a 11.47% return vs 9.94%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HFXI or VEU?

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

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

HFXI has the higher dividend yield at 3.84%, compared with 2.61% for VEU.

What is the main difference between HFXI and VEU?

HFXI tracks FTSE Developed ex North America 50% Hedged to USD Index, while VEU tracks FTSE All-World ex US Index. They also come from different issuers: New York Life and Vanguard. Their fees differ too: 0.20% for HFXI and 0.04% for VEU.

Which has better risk-adjusted returns?

HFXI currently has the higher Sharpe Ratio (2.41 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.