VEA vs. AJG

Last updated Jul 21, 2026

VEA (Vanguard FTSE Developed Markets ETF) is Foreign Large Cap Equities fund tracking the FTSE Developed All Cap ex US Index, while AJG (Arthur J. Gallagher & Co.) is a stock. Over the past 10 years, VEA returned 9.92%/yr vs 19.74%/yr for AJG. At a 0.46 correlation, their price movements are largely independent.

Performance

VEA vs. AJG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Developed Markets ETF (VEA) and Arthur J. Gallagher & Co. (AJG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VEA achieves a 11.59% return, which is significantly higher than AJG's -1.36% return. Over the past 10 years, VEA has underperformed AJG with an annualized return of 9.92%, while AJG has yielded a comparatively higher 19.74% annualized return.

VEA

• 1D: -0.67%
• 1M: -4.26%
• 6M: 7.02%
• YTD: 11.59%
• 1Y: 25.76%
• 3Y*: 17.14%
• 5Y*: 9.55%
• 10Y*: 9.92%
• ALL TIME*: 5.03%

AJG

• 1D: -0.09%
• 1M: 18.50%
• 6M: -1.25%
• YTD: -1.36%
• 1Y: -18.08%
• 3Y*: 6.09%
• 5Y*: 13.67%
• 10Y*: 19.74%
• ALL TIME*: 12.61%

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

VEA vs. AJG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEA Vanguard FTSE Developed Markets ETF	11.59%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	26.42%
AJG Arthur J. Gallagher & Co.	-1.36%	-8.03%	27.34%	20.51%	12.44%	39.02%	32.12%	31.79%	19.19%	25.04%

Correlation

The correlation between VEA and AJG is -0.10, 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	-0.10
Correlation (3Y) Calculated over the trailing 3-year period	0.11
Correlation (5Y) Calculated over the trailing 5-year period	0.29
Correlation (10Y) Calculated over the trailing 10-year period	0.38
Correlation (All Time) Calculated using the full available price history since Jul 26, 2007	0.46

The correlation between VEA and AJG shifts across timeframes, from -0.10 (1 year) to 0.46 (all time), reflecting how their relationship changes across market environments.

Return for Risk

VEA vs. AJG — Risk / Return Rank

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

VEA

VEA Risk / Return Rank: 61
VEA Sharpe Ratio Rank: 61
VEA Sortino Ratio Rank: 59
VEA Omega Ratio Rank: 60
VEA Calmar Ratio Rank: 59
VEA Martin Ratio Rank: 64

AJG

AJG Risk / Return Rank: 23
AJG Sharpe Ratio Rank: 17
AJG Sortino Ratio Rank: 19
AJG Omega Ratio Rank: 19
AJG Calmar Ratio Rank: 29
AJG 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.

VEA vs. AJG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Developed Markets ETF (VEA) and Arthur J. Gallagher & Co. (AJG). 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.

	VEA	AJG	Difference
Sharpe ratio: Return per unit of total volatility	1.52	-0.61	+2.13
Sortino ratio: Return per unit of downside risk	2.12	-0.69	+2.81
Omega ratio: Gain probability vs. loss probability	1.28	0.91	+0.37
Calmar ratio: Return relative to maximum drawdown	2.23	-0.47	+2.70
Martin ratio: Return relative to average drawdown	8.35	-0.79	+9.14

VEA vs. AJG - Sharpe Ratio Comparison

The current VEA Sharpe Ratio is 1.52, which is higher than the AJG Sharpe Ratio of -0.61. The chart below compares the historical Sharpe Ratios of VEA and AJG, 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

VEA vs. AJG - Drawdown Comparison

The maximum VEA drawdown since its inception was -60.68%, which is greater than AJG's maximum drawdown of -57.49%. Use the drawdown chart below to compare losses from any high point for VEA and AJG.

Drawdown Indicators

	VEA	AJG	Difference
Max Drawdown Largest peak-to-trough decline	-60.68%	-57.49%	-3.19%
Max Drawdown (1Y) Largest decline over 1 year	-11.63%	-38.59%	+26.96%
Max Drawdown (3Y) Largest decline over 3 years	-13.45%	-44.40%	+30.95%
Max Drawdown (5Y) Largest decline over 5 years	-29.71%	-44.40%	+14.69%
Max Drawdown (10Y) Largest decline over 10 years	-35.73%	-44.40%	+8.67%
Current Drawdown Current decline from peak	-4.37%	-26.31%	+21.94%
Average Drawdown Average peak-to-trough decline	-13.22%	-12.87%	-0.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.09%	23.05%	-19.96%

Volatility

VEA vs. AJG - Volatility Comparison

The current volatility for Vanguard FTSE Developed Markets ETF (VEA) is 5.31%, while Arthur J. Gallagher & Co. (AJG) has a volatility of 10.92%. This indicates that VEA experiences smaller price fluctuations and is considered to be less risky than AJG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEA	AJG	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.31%	10.92%	-5.61%
Volatility (6M) Calculated over the trailing 6-month period	15.14%	24.11%	-8.97%
Volatility (1Y) Calculated over the trailing 1-year period	17.09%	29.72%	-12.63%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.78%	23.42%	-6.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.18%	23.24%	-6.06%

Dividends

VEA vs. AJG - Dividend Comparison

VEA's dividend yield for the trailing twelve months is around 2.62%, more than AJG's 1.06% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AJG Arthur J. Gallagher & Co.	1.06%	1.00%	0.85%	0.98%	1.08%	1.13%	1.46%	1.81%	2.23%	2.47%	2.93%	3.62%
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 VEA and AJG in my portfolio?

VEA and AJG have a correlation of -0.10, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VEA or AJG?

AJG has higher volatility (10.92%) compared to VEA (5.31%). In terms of maximum drawdown, VEA dropped -60.68% vs AJG's -57.49%.

Which has better risk-adjusted returns?

VEA currently has the higher Sharpe Ratio (1.52 vs -0.61), 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.