IHDG vs. VEA

Last updated Jun 4, 2026

IHDG (WisdomTree International Hedged Dividend Growth Fund) and VEA (Vanguard FTSE Developed Markets ETF) are both Foreign Large Cap Equities funds - IHDG tracks the WisdomTree International Hedged Dividend Growth Index while VEA tracks the FTSE Developed All Cap ex US Index. Both are passively managed. Over the past 10 years, IHDG returned 10.09%/yr vs 10.17%/yr for VEA. Their correlation of 0.82 suggests significant overlap in exposure. IHDG charges 0.58%/yr vs 0.03%/yr for VEA.

Performance

IHDG vs. VEA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree International Hedged Dividend Growth Fund (IHDG) 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, IHDG achieves a 5.33% return, which is significantly lower than VEA's 14.92% return. Both investments have delivered pretty close results over the past 10 years, with IHDG having a 10.09% annualized return and VEA not far ahead at 10.17%.

IHDG

• 1D: -0.60%
• 1M: 4.90%
• YTD: 5.33%
• 6M: 7.48%
• 1Y: 15.52%
• 3Y*: 10.55%
• 5Y*: 7.68%
• 10Y*: 10.09%

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)

IHDG vs. VEA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IHDG WisdomTree International Hedged Dividend Growth Fund	5.33%	14.17%	5.97%	20.00%	-11.53%	19.75%	10.51%	33.42%	-12.03%	21.93%
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 IHDG and VEA is 0.84, 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	0.84
Correlation (3Y) Calculated over the trailing 3-year period	0.82
Correlation (5Y) Calculated over the trailing 5-year period	0.83
Correlation (10Y) Calculated over the trailing 10-year period	0.83
Correlation (All Time) Calculated using the full available price history since May 8, 2014	0.82

The correlation between IHDG and VEA has been stable across timeframes, ranging from 0.82 to 0.84 - a consistent structural relationship.

IHDG vs. VEA - Sectors Allocation Comparison

Sectors	IHDG	VEA
Industrials	19.7%	19.2%
Consumer Cyclical	19.3%	7.5%
Financial Services	15.2%	23.3%
Healthcare	9.4%	8.2%
Technology	7.8%	13.8%
Basic Materials	5.4%	7.5%
Communication Services	4.5%	3.4%
Consumer Defensive	4.3%	5.6%
Energy	3.7%	5.4%
Utilities	0.8%	3.3%
Real Estate	0.3%	2.7%

Return for Risk

IHDG vs. VEA — Risk / Return Rank

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

IHDG

IHDG Risk / Return Rank: 31
IHDG Sharpe Ratio Rank: 30
IHDG Sortino Ratio Rank: 31
IHDG Omega Ratio Rank: 31
IHDG Calmar Ratio Rank: 30
IHDG Martin Ratio Rank: 35

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.

IHDG vs. VEA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree International Hedged Dividend Growth Fund (IHDG) 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.

	IHDG	VEA	Difference
Sharpe ratio: Return per unit of total volatility	1.15	2.09	-0.94
Sortino ratio: Return per unit of downside risk	1.70	2.87	-1.17
Omega ratio: Gain probability vs. loss probability	1.21	1.38	-0.16
Calmar ratio: Return relative to maximum drawdown	1.49	2.81	-1.32
Martin ratio: Return relative to average drawdown	5.49	10.94	-5.46
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IHDG vs. VEA - Sharpe Ratio Comparison

The current IHDG Sharpe Ratio is 1.15, which is lower than the VEA Sharpe Ratio of 2.09. The chart below compares the historical Sharpe Ratios of IHDG 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

	IHDG	VEA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.15	2.09	-0.94
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.52	0.58	-0.06
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.64	0.59	+0.05
Sharpe Ratio (All Time) Calculated using the full available price history	0.59	0.25	+0.35

Drawdowns

IHDG vs. VEA - Drawdown Comparison

The maximum IHDG drawdown since its inception was -29.24%, smaller than the maximum VEA drawdown of -60.68%. Use the drawdown chart below to compare losses from any high point for IHDG and VEA.

Drawdown Indicators

	IHDG	VEA	Difference
Max Drawdown Largest peak-to-trough decline	-29.24%	-60.68%	+31.44%
Max Drawdown (1Y) Largest decline over 1 year	-10.49%	-11.63%	+1.14%
Max Drawdown (3Y) Largest decline over 3 years	-18.88%	-13.45%	-5.43%
Max Drawdown (5Y) Largest decline over 5 years	-19.52%	-29.71%	+10.19%
Max Drawdown (10Y) Largest decline over 10 years	-29.24%	-35.73%	+6.49%
Current Drawdown Current decline from peak	-1.36%	-0.90%	-0.46%
Average Drawdown Average peak-to-trough decline	-4.04%	-13.29%	+9.25%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.84%	2.98%	-0.14%

Volatility

IHDG vs. VEA - Volatility Comparison

The current volatility for WisdomTree International Hedged Dividend Growth Fund (IHDG) is 4.57%, while Vanguard FTSE Developed Markets ETF (VEA) has a volatility of 5.66%. This indicates that IHDG 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

	IHDG	VEA	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.57%	5.66%	-1.09%
Volatility (6M) Calculated over the trailing 6-month period	11.16%	13.32%	-2.16%
Volatility (1Y) Calculated over the trailing 1-year period	13.55%	15.66%	-2.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.82%	16.55%	-1.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.76%	17.36%	-1.60%

IHDG vs. VEA - Expense Ratio Comparison

IHDG has a 0.58% expense ratio, which is higher than VEA's 0.03% expense ratio.

Dividends

IHDG vs. VEA - Dividend Comparison

IHDG's dividend yield for the trailing twelve months is around 1.82%, less than VEA's 2.62% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IHDG WisdomTree International Hedged Dividend Growth Fund	1.82%	1.84%	2.42%	1.70%	13.79%	2.77%	1.94%	1.99%	0.22%	1.28%	1.91%	3.04%
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 IHDG and VEA in my portfolio?

IHDG and VEA have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IHDG or VEA?

VEA has higher volatility (5.66%) compared to IHDG (4.57%). In terms of maximum drawdown, IHDG dropped -29.24% vs VEA's -60.68%.

Which ETF is better, IHDG or VEA?

On 10-year performance, VEA leads with 10.17% vs 10.09% for IHDG. On fees, VEA is cheaper at 0.03% per year. On volatility, IHDG has been the lower-risk option at 4.57%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IHDG or VEA?

Over the 10-year period, VEA has performed better with a 10.17% return vs 10.09%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IHDG or VEA?

VEA is cheaper with a 0.03% expense ratio, compared with 0.58% for IHDG.

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

VEA has the higher dividend yield at 2.62%, compared with 1.82% for IHDG.

What is the main difference between IHDG and VEA?

IHDG tracks WisdomTree International Hedged Dividend Growth Index, while VEA tracks FTSE Developed All Cap ex US Index. They also come from different issuers: WisdomTree and Vanguard. Their fees differ too: 0.58% for IHDG and 0.03% for VEA.

Which has better risk-adjusted returns?

VEA currently has the higher Sharpe Ratio (2.09 vs 1.15), 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.