VAE.AX vs. VGS.AX

Last updated Jul 18, 2026

VAE.AX (Vanguard FTSE Asia ex Japan Shares Index ETF) and VGS.AX (Vanguard MSCI Index International Shares ETF) are both exchange-traded funds - VAE.AX is a Asia Pacific Equities fund tracking the FTSE Asia Pacific ex Japan, Australia and New Zealand Index, while VGS.AX is a Global Equities fund tracking the Vanguard MSCI Index International Shares Index. Both are passively managed. Over the past 10 years, VAE.AX returned 9.26%/yr vs 13.37%/yr for VGS.AX. At a 0.50 correlation, their price movements are largely independent. VAE.AX charges 0.40%/yr vs 0.18%/yr for VGS.AX.

Performance

VAE.AX vs. VGS.AX - Performance Comparison

The chart below illustrates the hypothetical performance of a A$10,000 investment in Vanguard FTSE Asia ex Japan Shares Index ETF (VAE.AX) and Vanguard MSCI Index International Shares ETF (VGS.AX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VAE.AX achieves a 9.78% return, which is significantly higher than VGS.AX's 4.04% return. Over the past 10 years, VAE.AX has underperformed VGS.AX with an annualized return of 9.26%, while VGS.AX has yielded a comparatively higher 13.37% annualized return.

VAE.AX

• 1D: -3.98%
• 1M: -9.64%
• 6M: 4.02%
• YTD: 9.78%
• 1Y: 20.17%
• 3Y*: 18.38%
• 5Y*: 6.68%
• 10Y*: 9.26%

VGS.AX

• 1D: -1.21%
• 1M: 0.20%
• 6M: 2.73%
• YTD: 4.04%
• 1Y: 11.55%
• 3Y*: 17.00%
• 5Y*: 12.22%
• 10Y*: 13.37%

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

VAE.AX vs. VGS.AX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VAE.AX Vanguard FTSE Asia ex Japan Shares Index ETF	9.78%	23.98%	22.74%	3.18%	-14.06%	0.49%	12.05%	17.01%	-5.50%	27.59%
VGS.AX Vanguard MSCI Index International Shares ETF	4.04%	12.89%	29.23%	22.54%	-12.72%	29.67%	5.76%	29.16%	-0.01%	12.95%

Correlation

The correlation between VAE.AX and VGS.AX is 0.51, 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	0.51
Correlation (3Y) Calculated over the trailing 3-year period	0.43
Correlation (5Y) Calculated over the trailing 5-year period	0.45
Correlation (10Y) Calculated over the trailing 10-year period	0.50
Correlation (All Time) Calculated using the full available price history since Dec 9, 2015	0.50

The correlation between VAE.AX and VGS.AX has been stable across timeframes, ranging from 0.43 to 0.51 - a consistent structural relationship.

Return for Risk

VAE.AX vs. VGS.AX — Risk / Return Rank

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

VAE.AX

VAE.AX Risk / Return Rank: 40
VAE.AX Sharpe Ratio Rank: 37
VAE.AX Sortino Ratio Rank: 36
VAE.AX Omega Ratio Rank: 39
VAE.AX Calmar Ratio Rank: 42
VAE.AX Martin Ratio Rank: 44

VGS.AX

VGS.AX Risk / Return Rank: 36
VGS.AX Sharpe Ratio Rank: 42
VGS.AX Sortino Ratio Rank: 40
VGS.AX Omega Ratio Rank: 43
VGS.AX Calmar Ratio Rank: 28
VGS.AX Martin Ratio Rank: 30

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.

VAE.AX vs. VGS.AX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Asia ex Japan Shares Index ETF (VAE.AX) and Vanguard MSCI Index International Shares ETF (VGS.AX). 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.

	VAE.AX	VGS.AX	Difference
Sharpe ratio: Return per unit of total volatility	1.05	1.14	-0.09
Sortino ratio: Return per unit of downside risk	1.50	1.61	-0.11
Omega ratio: Gain probability vs. loss probability	1.20	1.22	-0.01
Calmar ratio: Return relative to maximum drawdown	1.69	1.03	+0.65
Martin ratio: Return relative to average drawdown	5.46	3.10	+2.36

VAE.AX vs. VGS.AX - Sharpe Ratio Comparison

The current VAE.AX Sharpe Ratio is 1.05, which is comparable to the VGS.AX Sharpe Ratio of 1.14. The chart below compares the historical Sharpe Ratios of VAE.AX and VGS.AX, 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

VAE.AX vs. VGS.AX - Drawdown Comparison

The maximum VAE.AX drawdown since its inception was -31.55%, which is greater than VGS.AX's maximum drawdown of -23.39%. Use the drawdown chart below to compare losses from any high point for VAE.AX and VGS.AX.

Drawdown Indicators

	VAE.AX	VGS.AX	Difference
Max Drawdown Largest peak-to-trough decline	-31.55%	-23.39%	-8.16%
Max Drawdown (1Y) Largest decline over 1 year	-11.47%	-10.72%	-0.75%
Max Drawdown (3Y) Largest decline over 3 years	-11.47%	-13.82%	+2.35%
Max Drawdown (5Y) Largest decline over 5 years	-28.59%	-20.53%	-8.06%
Max Drawdown (10Y) Largest decline over 10 years	-31.55%	-23.39%	-8.16%
Current Drawdown Current decline from peak	-11.47%	-1.56%	-9.91%
Average Drawdown Average peak-to-trough decline	-7.70%	-4.18%	-3.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.61%	3.64%	-0.03%

Volatility

VAE.AX vs. VGS.AX - Volatility Comparison

Vanguard FTSE Asia ex Japan Shares Index ETF (VAE.AX) has a higher volatility of 9.15% compared to Vanguard MSCI Index International Shares ETF (VGS.AX) at 2.55%. This indicates that VAE.AX's price experiences larger fluctuations and is considered to be riskier than VGS.AX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VAE.AX	VGS.AX	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.15%	2.55%	+6.60%
Volatility (6M) Calculated over the trailing 6-month period	16.99%	7.88%	+9.11%
Volatility (1Y) Calculated over the trailing 1-year period	18.42%	9.83%	+8.59%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.53%	12.42%	+3.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.83%	12.93%	+1.90%

VAE.AX vs. VGS.AX - Expense Ratio Comparison

VAE.AX has a 0.40% expense ratio, which is higher than VGS.AX's 0.18% expense ratio.

Dividends

VAE.AX vs. VGS.AX - Dividend Comparison

VAE.AX's dividend yield for the trailing twelve months is around 1.23%, more than VGS.AX's 0.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VAE.AX Vanguard FTSE Asia ex Japan Shares Index ETF	1.23%	2.29%	3.07%	1.93%	0.73%	0.58%	1.00%	1.83%	2.59%	1.44%	2.26%	0.00%
VGS.AX Vanguard MSCI Index International Shares ETF	0.98%	2.49%	1.76%	1.82%	1.42%	1.75%	2.24%	2.42%	2.19%	2.25%	3.29%	2.35%

Frequently Asked Questions

Can I hold both VAE.AX and VGS.AX in my portfolio?

VAE.AX and VGS.AX have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VAE.AX or VGS.AX?

On fees, VGS.AX is cheaper at 0.18% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VAE.AX or VGS.AX?

VGS.AX is cheaper with a 0.18% expense ratio, compared with 0.40% for VAE.AX.

What is the main difference between VAE.AX and VGS.AX?

VAE.AX is categorized as Asia Pacific Equities, while VGS.AX is Global Equities. VAE.AX tracks FTSE Asia Pacific ex Japan, Australia and New Zealand Index, while VGS.AX tracks Vanguard MSCI Index International Shares Index. Their fees differ too: 0.40% for VAE.AX and 0.18% for VGS.AX.