VEA vs. DBAW

Last updated Jun 26, 2026

VEA (Vanguard FTSE Developed Markets ETF) and DBAW (Xtrackers MSCI All World ex US Hedged Equity ETF) are both Foreign Large Cap Equities funds - VEA tracks the FTSE Developed All Cap ex US Index while DBAW tracks the MSCI ACWI ex USA US Dollar Hedged Index. Both are passively managed. Over the past 10 years, VEA returned 11.09%/yr vs 12.19%/yr for DBAW. Their correlation of 0.86 suggests significant overlap in exposure. VEA charges 0.03%/yr vs 0.41%/yr for DBAW.

Performance

VEA vs. DBAW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Developed Markets ETF (VEA) and Xtrackers MSCI All World ex US Hedged Equity ETF (DBAW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VEA achieves a 14.71% return, which is significantly lower than DBAW's 17.04% return. Over the past 10 years, VEA has underperformed DBAW with an annualized return of 11.09%, while DBAW has yielded a comparatively higher 12.19% annualized return.

VEA

• 1D: 1.25%
• 1M: -0.34%
• YTD: 14.71%
• 6M: 14.32%
• 1Y: 31.05%
• 3Y*: 19.91%
• 5Y*: 9.74%
• 10Y*: 11.09%

DBAW

• 1D: 0.81%
• 1M: 1.36%
• YTD: 17.04%
• 6M: 17.08%
• 1Y: 35.72%
• 3Y*: 21.70%
• 5Y*: 11.32%
• 10Y*: 12.19%

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

VEA vs. DBAW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEA Vanguard FTSE Developed Markets ETF	14.71%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	26.42%
DBAW Xtrackers MSCI All World ex US Hedged Equity ETF	17.04%	26.47%	14.35%	16.26%	-13.35%	13.08%	7.44%	22.96%	-10.38%	18.79%

Correlation

The correlation between VEA and DBAW is 0.90, 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	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.88
Correlation (5Y) Calculated over the trailing 5-year period	0.89
Correlation (10Y) Calculated over the trailing 10-year period	0.89
Correlation (All Time) Calculated using the full available price history since Jan 27, 2014	0.86

The correlation between VEA and DBAW has been stable across timeframes, ranging from 0.86 to 0.90 - a consistent structural relationship.

VEA vs. DBAW - Sectors Allocation Comparison

Sectors	VEA	DBAW
Financial Services	22.3%	23.2%
Industrials	17.5%	14.3%
Technology	16.6%	22.4%
Healthcare	7.6%	6.8%
Basic Materials	7.5%	6.9%
Consumer Cyclical	7.4%	7.6%
Consumer Defensive	5.5%	5.0%
Energy	4.7%	4.8%
Communication Services	3.2%	4.9%
Utilities	3.0%	2.9%
Real Estate	2.5%	1.4%

Return for Risk

VEA vs. DBAW — Risk / Return Rank

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

VEA

VEA Risk / Return Rank: 65
VEA Sharpe Ratio Rank: 66
VEA Sortino Ratio Rank: 63
VEA Omega Ratio Rank: 67
VEA Calmar Ratio Rank: 63
VEA Martin Ratio Rank: 65

DBAW

DBAW Risk / Return Rank: 87
DBAW Sharpe Ratio Rank: 89
DBAW Sortino Ratio Rank: 87
DBAW Omega Ratio Rank: 90
DBAW Calmar Ratio Rank: 84
DBAW Martin Ratio Rank: 87

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. DBAW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Developed Markets ETF (VEA) and Xtrackers MSCI All World ex US Hedged Equity ETF (DBAW). 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	DBAW	Difference
Sharpe ratio: Return per unit of total volatility	1.86	2.57	-0.71
Sortino ratio: Return per unit of downside risk	2.53	3.42	-0.88
Omega ratio: Gain probability vs. loss probability	1.34	1.50	-0.16
Calmar ratio: Return relative to maximum drawdown	2.68	3.99	-1.31
Martin ratio: Return relative to average drawdown	10.30	16.12	-5.83

VEA vs. DBAW - Sharpe Ratio Comparison

The current VEA Sharpe Ratio is 1.86, which is comparable to the DBAW Sharpe Ratio of 2.57. The chart below compares the historical Sharpe Ratios of VEA and DBAW, 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. DBAW - Drawdown Comparison

The maximum VEA drawdown since its inception was -60.68%, which is greater than DBAW's maximum drawdown of -31.44%. Use the drawdown chart below to compare losses from any high point for VEA and DBAW.

Drawdown Indicators

	VEA	DBAW	Difference
Max Drawdown Largest peak-to-trough decline	-60.68%	-31.44%	-29.24%
Max Drawdown (1Y) Largest decline over 1 year	-11.63%	-9.00%	-2.63%
Max Drawdown (3Y) Largest decline over 3 years	-13.45%	-14.11%	+0.66%
Max Drawdown (5Y) Largest decline over 5 years	-29.71%	-17.87%	-11.84%
Max Drawdown (10Y) Largest decline over 10 years	-35.73%	-31.44%	-4.29%
Current Drawdown Current decline from peak	-1.70%	-1.95%	+0.25%
Average Drawdown Average peak-to-trough decline	-13.25%	-4.98%	-8.27%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.02%	2.22%	+0.80%

Volatility

VEA vs. DBAW - Volatility Comparison

Vanguard FTSE Developed Markets ETF (VEA) has a higher volatility of 6.94% compared to Xtrackers MSCI All World ex US Hedged Equity ETF (DBAW) at 6.13%. This indicates that VEA's price experiences larger fluctuations and is considered to be riskier than DBAW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEA	DBAW	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.94%	6.13%	+0.81%
Volatility (6M) Calculated over the trailing 6-month period	14.77%	12.33%	+2.44%
Volatility (1Y) Calculated over the trailing 1-year period	16.78%	13.99%	+2.79%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.77%	13.97%	+2.80%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.20%	15.21%	+1.99%

VEA vs. DBAW - Expense Ratio Comparison

VEA has a 0.03% expense ratio, which is lower than DBAW's 0.41% expense ratio.

Dividends

VEA vs. DBAW - Dividend Comparison

VEA's dividend yield for the trailing twelve months is around 2.55%, more than DBAW's 1.68% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DBAW Xtrackers MSCI All World ex US Hedged Equity ETF	1.68%	3.83%	1.70%	3.45%	8.81%	2.05%	2.08%	2.91%	2.93%	2.41%	1.99%	5.74%
VEA Vanguard FTSE Developed Markets ETF	2.55%	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 DBAW in my portfolio?

With a correlation of 0.90, VEA and DBAW move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VEA or DBAW?

VEA has higher volatility (6.94%) compared to DBAW (6.13%). In terms of maximum drawdown, VEA dropped -60.68% vs DBAW's -31.44%.

Which ETF is better, VEA or DBAW?

On 10-year performance, DBAW leads with 12.19% vs 11.09% for VEA. On fees, VEA is cheaper at 0.03% per year. On volatility, DBAW has been the lower-risk option at 6.13%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VEA or DBAW?

Over the 10-year period, DBAW has performed better with a 12.19% return vs 11.09%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VEA or DBAW?

VEA is cheaper with a 0.03% expense ratio, compared with 0.41% for DBAW.

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

VEA has the higher dividend yield at 2.55%, compared with 1.68% for DBAW.

What is the main difference between VEA and DBAW?

VEA tracks FTSE Developed All Cap ex US Index, while DBAW tracks MSCI ACWI ex USA US Dollar Hedged Index. They also come from different issuers: Vanguard and Deutsche Bank. Their fees differ too: 0.03% for VEA and 0.41% for DBAW.

Which has better risk-adjusted returns?

DBAW currently has the higher Sharpe Ratio (2.57 vs 1.86), 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.