PAYC vs. VEU

Last updated Jul 17, 2026

PAYC (Paycom Software, Inc.) is a stock, while VEU (Vanguard FTSE All-World ex-US ETF) is Foreign Large Cap Equities fund tracking the FTSE All-World ex US Index. Over the past 10 years, PAYC returned 12.70%/yr vs 9.60%/yr for VEU. At a 0.40 correlation, their price movements are largely independent.

Performance

PAYC vs. VEU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Paycom Software, Inc. (PAYC) 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, PAYC achieves a -5.06% return, which is significantly lower than VEU's 12.47% return. Over the past 10 years, PAYC has outperformed VEU with an annualized return of 12.70%, while VEU has yielded a comparatively lower 9.60% annualized return.

PAYC

• 1D: 3.97%
• 1M: 16.53%
• 6M: -0.97%
• YTD: -5.06%
• 1Y: -31.96%
• 3Y*: -24.56%
• 5Y*: -16.17%
• 10Y*: 12.70%

VEU

• 1D: -1.09%
• 1M: -2.49%
• 6M: 7.82%
• YTD: 12.47%
• 1Y: 26.08%
• 3Y*: 17.40%
• 5Y*: 8.97%
• 10Y*: 9.60%

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

PAYC vs. VEU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PAYC Paycom Software, Inc.	-5.06%	-21.70%	-0.04%	-33.06%	-25.26%	-8.19%	70.82%	116.22%	52.43%	76.59%
VEU Vanguard FTSE All-World ex-US ETF	12.47%	32.35%	5.56%	15.84%	-15.58%	8.27%	11.10%	21.83%	-14.18%	27.40%

Correlation

The correlation between PAYC and VEU is -0.05, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.05
Correlation (3Y) Calculated over the trailing 3-year period	0.23
Correlation (5Y) Calculated over the trailing 5-year period	0.37
Correlation (10Y) Calculated over the trailing 10-year period	0.41
Correlation (All Time) Calculated using the full available price history since Apr 15, 2014	0.40

The correlation between PAYC and VEU shifts across timeframes, from -0.05 (1 year) to 0.41 (10 years), reflecting how their relationship changes across market environments.

Return for Risk

PAYC vs. VEU — Risk / Return Rank

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

PAYC

PAYC Risk / Return Rank: 16
PAYC Sharpe Ratio Rank: 9
PAYC Sortino Ratio Rank: 12
PAYC Omega Ratio Rank: 13
PAYC Calmar Ratio Rank: 21
PAYC Martin Ratio Rank: 25

VEU

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

PAYC vs. VEU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Paycom Software, Inc. (PAYC) 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.

	PAYC	VEU	Difference
Sharpe ratio: Return per unit of total volatility	-0.82	1.57	-2.39
Sortino ratio: Return per unit of downside risk	-1.07	2.17	-3.24
Omega ratio: Gain probability vs. loss probability	0.88	1.29	-0.41
Calmar ratio: Return relative to maximum drawdown	-0.62	2.29	-2.91
Martin ratio: Return relative to average drawdown	-0.91	8.56	-9.48

PAYC vs. VEU - Sharpe Ratio Comparison

The current PAYC Sharpe Ratio is -0.82, which is lower than the VEU Sharpe Ratio of 1.57. The chart below compares the historical Sharpe Ratios of PAYC 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

PAYC vs. VEU - Drawdown Comparison

The maximum PAYC drawdown since its inception was -78.99%, which is greater than VEU's maximum drawdown of -61.52%. Use the drawdown chart below to compare losses from any high point for PAYC and VEU.

Drawdown Indicators

	PAYC	VEU	Difference
Max Drawdown Largest peak-to-trough decline	-78.99%	-61.52%	-17.47%
Max Drawdown (1Y) Largest decline over 1 year	-52.12%	-11.43%	-40.69%
Max Drawdown (3Y) Largest decline over 3 years	-68.70%	-13.69%	-55.01%
Max Drawdown (5Y) Largest decline over 5 years	-78.99%	-29.14%	-49.85%
Max Drawdown (10Y) Largest decline over 10 years	-78.99%	-34.98%	-44.01%
Current Drawdown Current decline from peak	-72.10%	-3.53%	-68.57%
Average Drawdown Average peak-to-trough decline	-27.56%	-13.07%	-14.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	35.05%	3.05%	+32.00%

Volatility

PAYC vs. VEU - Volatility Comparison

Paycom Software, Inc. (PAYC) has a higher volatility of 13.92% compared to Vanguard FTSE All-World ex-US ETF (VEU) at 5.28%. This indicates that PAYC's price experiences larger fluctuations and is considered to be riskier than VEU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PAYC	VEU	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.92%	5.28%	+8.64%
Volatility (6M) Calculated over the trailing 6-month period	32.23%	14.79%	+17.44%
Volatility (1Y) Calculated over the trailing 1-year period	39.27%	16.70%	+22.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	44.81%	16.33%	+28.48%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	44.60%	17.04%	+27.56%

Dividends

PAYC vs. VEU - Dividend Comparison

PAYC's dividend yield for the trailing twelve months is around 1.00%, less than VEU's 2.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PAYC Paycom Software, Inc.	1.00%	0.94%	0.73%	0.54%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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 PAYC and VEU in my portfolio?

PAYC and VEU have a correlation of -0.05, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PAYC or VEU?

PAYC has higher volatility (13.92%) compared to VEU (5.28%). In terms of maximum drawdown, PAYC dropped -78.99% vs VEU's -61.52%.

Which has better risk-adjusted returns?

VEU currently has the higher Sharpe Ratio (1.57 vs -0.82), 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.