VEA vs. ESGV

Last updated Jun 25, 2026

VEA (Vanguard FTSE Developed Markets ETF) and ESGV (Vanguard ESG U.S. Stock ETF) are both exchange-traded funds - VEA is a Foreign Large Cap Equities fund tracking the FTSE Developed All Cap ex US Index, while ESGV is a Large Cap Blend Equities fund tracking the FTSE US All Cap Choice Index. Both are passively managed. Over the past 5 years, VEA returned 9.47%/yr vs 11.52%/yr for ESGV. A 0.79 correlation means they provide meaningful diversification when combined. VEA charges 0.03%/yr vs 0.09%/yr for ESGV.

Performance

VEA vs. ESGV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Developed Markets ETF (VEA) and Vanguard ESG U.S. Stock ETF (ESGV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VEA achieves a 13.29% return, which is significantly higher than ESGV's 7.69% return.

VEA

• 1D: 0.16%
• 1M: 0.27%
• YTD: 13.29%
• 6M: 12.91%
• 1Y: 28.78%
• 3Y*: 19.54%
• 5Y*: 9.47%
• 10Y*: 10.74%

ESGV

• 1D: -0.05%
• 1M: -1.17%
• YTD: 7.69%
• 6M: 6.35%
• 1Y: 21.75%
• 3Y*: 20.56%
• 5Y*: 11.52%
• 10Y*: —

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

VEA vs. ESGV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
VEA Vanguard FTSE Developed Markets ETF	13.29%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-13.18%
ESGV Vanguard ESG U.S. Stock ETF	7.69%	16.48%	24.69%	30.79%	-24.04%	26.55%	25.69%	33.36%	-14.45%

Correlation

The correlation between VEA and ESGV is 0.78, 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	0.78
Correlation (3Y) Calculated over the trailing 3-year period	0.74
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (All Time) Calculated using the full available price history since Sep 20, 2018	0.79

The correlation between VEA and ESGV has been stable across timeframes, ranging from 0.74 to 0.79 - a consistent structural relationship.

VEA vs. ESGV - Sectors Allocation Comparison

Sectors	VEA	ESGV
Financial Services	22.3%	11.4%
Industrials	17.5%	4.2%
Technology	16.6%	43.0%
Healthcare	7.6%	9.5%
Basic Materials	7.5%	1.8%
Consumer Cyclical	7.4%	11.7%
Consumer Defensive	5.5%	3.6%
Energy	4.7%	0.1%
Communication Services	3.2%	12.2%
Utilities	3.0%	0.2%
Real Estate	2.5%	2.6%

Return for Risk

VEA vs. ESGV — Risk / Return Rank

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

VEA

VEA Risk / Return Rank: 57
VEA Sharpe Ratio Rank: 56
VEA Sortino Ratio Rank: 55
VEA Omega Ratio Rank: 57
VEA Calmar Ratio Rank: 56
VEA Martin Ratio Rank: 59

ESGV

ESGV Risk / Return Rank: 47
ESGV Sharpe Ratio Rank: 50
ESGV Sortino Ratio Rank: 48
ESGV Omega Ratio Rank: 49
ESGV Calmar Ratio Rank: 41
ESGV Martin Ratio Rank: 50

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. ESGV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Developed Markets ETF (VEA) and Vanguard ESG U.S. Stock ETF (ESGV). 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	ESGV	Difference
Sharpe ratio: Return per unit of total volatility	1.73	1.55	+0.17
Sortino ratio: Return per unit of downside risk	2.38	2.15	+0.23
Omega ratio: Gain probability vs. loss probability	1.32	1.28	+0.04
Calmar ratio: Return relative to maximum drawdown	2.49	1.88	+0.60
Martin ratio: Return relative to average drawdown	9.55	7.84	+1.71

VEA vs. ESGV - Sharpe Ratio Comparison

The current VEA Sharpe Ratio is 1.73, which is comparable to the ESGV Sharpe Ratio of 1.55. The chart below compares the historical Sharpe Ratios of VEA and ESGV, 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. ESGV - Drawdown Comparison

The maximum VEA drawdown since its inception was -60.68%, which is greater than ESGV's maximum drawdown of -33.66%. Use the drawdown chart below to compare losses from any high point for VEA and ESGV.

Drawdown Indicators

	VEA	ESGV	Difference
Max Drawdown Largest peak-to-trough decline	-60.68%	-33.66%	-27.02%
Max Drawdown (1Y) Largest decline over 1 year	-11.63%	-11.60%	-0.03%
Max Drawdown (3Y) Largest decline over 3 years	-13.45%	-20.41%	+6.96%
Max Drawdown (5Y) Largest decline over 5 years	-29.71%	-28.81%	-0.90%
Max Drawdown (10Y) Largest decline over 10 years	-35.73%	—	—
Current Drawdown Current decline from peak	-2.91%	-3.61%	+0.70%
Average Drawdown Average peak-to-trough decline	-13.26%	-6.40%	-6.86%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.02%	2.78%	+0.24%

Volatility

VEA vs. ESGV - Volatility Comparison

Vanguard FTSE Developed Markets ETF (VEA) has a higher volatility of 7.08% compared to Vanguard ESG U.S. Stock ETF (ESGV) at 5.59%. This indicates that VEA's price experiences larger fluctuations and is considered to be riskier than ESGV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEA	ESGV	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.08%	5.59%	+1.49%
Volatility (6M) Calculated over the trailing 6-month period	14.73%	11.22%	+3.51%
Volatility (1Y) Calculated over the trailing 1-year period	16.78%	14.12%	+2.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.76%	18.48%	-1.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.20%	20.59%	-3.39%

VEA vs. ESGV - Expense Ratio Comparison

VEA has a 0.03% expense ratio, which is lower than ESGV's 0.09% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VEA vs. ESGV - Dividend Comparison

VEA's dividend yield for the trailing twelve months is around 2.58%, more than ESGV's 0.89% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ESGV Vanguard ESG U.S. Stock ETF	0.89%	0.91%	1.04%	1.16%	1.42%	0.95%	1.11%	1.27%	0.28%	0.00%	0.00%	0.00%
VEA Vanguard FTSE Developed Markets ETF	2.58%	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 ESGV in my portfolio?

VEA and ESGV have a correlation of 0.78, 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 ESGV?

VEA has higher volatility (7.08%) compared to ESGV (5.59%). In terms of maximum drawdown, VEA dropped -60.68% vs ESGV's -33.66%.

Which ETF is better, VEA or ESGV?

On 5-year performance, ESGV leads with 11.52% vs 9.47% for VEA. On fees, VEA is cheaper at 0.03% per year. On volatility, ESGV has been the lower-risk option at 5.59%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VEA or ESGV?

Over the 5-year period, ESGV has performed better with a 11.52% return vs 9.47%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VEA or ESGV?

VEA is cheaper with a 0.03% expense ratio, compared with 0.09% for ESGV.

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

VEA has the higher dividend yield at 2.58%, compared with 0.89% for ESGV.

What is the main difference between VEA and ESGV?

VEA is categorized as Foreign Large Cap Equities, while ESGV is Large Cap Blend Equities. VEA tracks FTSE Developed All Cap ex US Index, while ESGV tracks FTSE US All Cap Choice Index. Their fees differ too: 0.03% for VEA and 0.09% for ESGV.

Which has better risk-adjusted returns?

VEA currently has the higher Sharpe Ratio (1.73 vs 1.55), 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.