VDU.TO vs. THE.TO

Last updated Aug 4, 2026

VDU.TO (Vanguard FTSE Developed All Cap ex U.S. Index ETF) and THE.TO (TD International Equity CAD Hedged Index ETF) are both Foreign Large Cap Equities funds - VDU.TO tracks the FTSE Developed All Cap ex US Index while THE.TO tracks the Solactive GBS Developed Markets ex North America Large & Mid Cap Hedged to CAD Index. Both are passively managed. Over the past 10 years, VDU.TO returned 10.12%/yr vs 11.35%/yr for THE.TO. Their 0.48 correlation means their historical movements had little consistent relationship. VDU.TO charges 0.22%/yr vs 0.19%/yr for THE.TO.

Performance

VDU.TO vs. THE.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in Vanguard FTSE Developed All Cap ex U.S. Index ETF (VDU.TO) and TD International Equity CAD Hedged Index ETF (THE.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VDU.TO achieves a 16.08% return, which is significantly higher than THE.TO's 13.00% return. Over the past 10 years, VDU.TO has underperformed THE.TO with an annualized return of 10.12%, while THE.TO has yielded a comparatively higher 11.35% annualized return.

VDU.TO

• 1D: -0.46%
• 1M: -1.58%
• 6M: 9.52%
• YTD: 16.08%
• 1Y: 30.94%
• 3Y*: 19.41%
• 5Y*: 11.64%
• 10Y*: 10.12%
• ALL TIME*: 9.93%

THE.TO

• 1D: -0.59%
• 1M: -0.06%
• 6M: 8.12%
• YTD: 13.00%
• 1Y: 26.64%
• 3Y*: 16.77%
• 5Y*: 12.43%
• 10Y*: 11.35%
• ALL TIME*: 10.82%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
THE.TO TD International Equity CAD Hedged Index ETF	CA$226.21K	CA$221.25K	CA$208.47K
VDU.TO Vanguard FTSE Developed All Cap ex U.S. Index ETF	CA$601.69K	CA$734.63K	CA$1.16M

VDU.TO vs. THE.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VDU.TO Vanguard FTSE Developed All Cap ex U.S. Index ETF	16.08%	27.97%	11.37%	14.56%	-9.89%	10.22%	7.06%	15.90%	-8.11%	17.64%
THE.TO TD International Equity CAD Hedged Index ETF	13.00%	21.73%	12.55%	18.49%	-7.02%	16.77%	1.71%	20.59%	-9.06%	16.28%

Correlation

The correlation between VDU.TO and THE.TO is 0.89, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.89
Correlation (3Y) Balances recent behavior with more history.	0.85
Correlation (5Y) Shows whether the relationship held over a longer period.	0.72
Correlation (10Y) Provides a long-term view across more market conditions.	0.49
Correlation (All Time) Calculated using the full available price history since Mar 30, 2016	0.48

Over the past year, VDU.TO and THE.TO have become more correlated (0.89) than their long-term average of 0.48, meaning their price movements have been converging.

VDU.TO vs. THE.TO - Sectors Allocation Comparison

Sectors	VDU.TO	THE.TO
Financial Services	23.1%	24.1%
Technology	18.5%	11.4%
Industrials	17.8%	19.4%
Healthcare	7.9%	10.2%
Basic Materials	7.1%	6.3%
Consumer Cyclical	6.9%	7.9%
Consumer Defensive	5.4%	6.6%
Energy	4.4%	3.8%
Utilities	3.1%	3.7%
Communication Services	2.8%	4.7%
Real Estate	2.3%	2.1%

Return for Risk

VDU.TO vs. THE.TO — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VDU.TO

VDU.TO Risk / Return Rank: 77
VDU.TO Sharpe Ratio Rank: 79
VDU.TO Sortino Ratio Rank: 78
VDU.TO Omega Ratio Rank: 80
VDU.TO Calmar Ratio Rank: 73
VDU.TO Martin Ratio Rank: 77

THE.TO

THE.TO Risk / Return Rank: 78
THE.TO Sharpe Ratio Rank: 81
THE.TO Sortino Ratio Rank: 82
THE.TO Omega Ratio Rank: 81
THE.TO Calmar Ratio Rank: 72
THE.TO Martin Ratio Rank: 77

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VDU.TO vs. THE.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Developed All Cap ex U.S. Index ETF (VDU.TO) and TD International Equity CAD Hedged Index ETF (THE.TO). 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.

	VDU.TO	THE.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.87	1.98	-0.11
Sortino ratio: Return per unit of downside risk	2.57	2.82	-0.25
Omega ratio: Gain probability vs. loss probability	1.34	1.36	-0.02
Calmar ratio: Return relative to maximum drawdown	2.64	2.67	-0.03
Martin ratio: Return relative to average drawdown	10.12	10.33	-0.21

VDU.TO vs. THE.TO - Sharpe Ratio Comparison

The current VDU.TO Sharpe Ratio is 1.87, which is comparable to the THE.TO Sharpe Ratio of 1.98. The chart below compares the historical Sharpe Ratios of VDU.TO and THE.TO, 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

VDU.TO vs. THE.TO - Drawdown Comparison

The maximum VDU.TO drawdown since its inception was -29.19%, smaller than the maximum THE.TO drawdown of -32.08%. Use the drawdown chart below to compare losses from any high point for VDU.TO and THE.TO.

Drawdown Indicators

	VDU.TO	THE.TO	Difference
Max Drawdown Largest peak-to-trough decline	-29.19%	-32.08%	+2.89%
Max Drawdown (1Y) Largest decline over 1 year	-11.47%	-9.47%	-2.00%
Max Drawdown (3Y) Largest decline over 3 years	-14.02%	-14.69%	+0.67%
Max Drawdown (5Y) Largest decline over 5 years	-24.11%	-15.55%	-8.56%
Max Drawdown (10Y) Largest decline over 10 years	-29.19%	-32.08%	+2.89%
Current Drawdown Current decline from peak	-3.53%	-0.59%	-2.94%
Average Drawdown Average peak-to-trough decline	-4.63%	-3.68%	-0.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.98%	2.44%	+0.54%

Volatility

VDU.TO vs. THE.TO - Volatility Comparison

Vanguard FTSE Developed All Cap ex U.S. Index ETF (VDU.TO) has a higher volatility of 5.16% compared to TD International Equity CAD Hedged Index ETF (THE.TO) at 3.31%. This indicates that VDU.TO's price experiences larger fluctuations and is considered to be riskier than THE.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VDU.TO	THE.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.16%	3.31%	+1.85%
Volatility (6M) Calculated over the trailing 6-month period	14.35%	10.75%	+3.60%
Volatility (1Y) Calculated over the trailing 1-year period	16.20%	12.80%	+3.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.89%	14.20%	-0.31%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.67%	17.08%	-2.41%

VDU.TO vs. THE.TO - Expense Ratio Comparison

VDU.TO has a 0.22% expense ratio, which is higher than THE.TO's 0.19% 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

VDU.TO vs. THE.TO - Dividend Comparison

VDU.TO's dividend yield for the trailing twelve months is around 2.02%, less than THE.TO's 2.33% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
THE.TO TD International Equity CAD Hedged Index ETF	2.33%	2.57%	2.73%	2.65%	3.46%	2.20%	2.47%	2.52%	3.52%	2.87%	2.10%	0.00%
VDU.TO Vanguard FTSE Developed All Cap ex U.S. Index ETF	2.02%	2.61%	2.55%	2.54%	2.14%	2.66%	1.64%	2.48%	2.61%	2.25%	2.41%	2.24%

Frequently Asked Questions

Can I hold both VDU.TO and THE.TO in my portfolio?

VDU.TO and THE.TO have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VDU.TO or THE.TO?

On fees, THE.TO is cheaper at 0.19% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VDU.TO or THE.TO?

THE.TO is cheaper with a 0.19% expense ratio, compared with 0.22% for VDU.TO.

What is the main difference between VDU.TO and THE.TO?

VDU.TO tracks FTSE Developed All Cap ex US Index, while THE.TO tracks Solactive GBS Developed Markets ex North America Large & Mid Cap Hedged to CAD Index. They also come from different issuers: Vanguard and TD. Their fees differ too: 0.22% for VDU.TO and 0.19% for THE.TO.