VEA vs. ICOW

Last updated Jun 5, 2026

VEA (Vanguard FTSE Developed Markets ETF) and ICOW (Pacer Developed Markets International Cash Cows 100 ETF) are both Foreign Large Cap Equities funds - VEA tracks the FTSE Developed All Cap ex US Index while ICOW tracks the Pacer Developed Markets International Cash Cows 100 Index. Both are passively managed. Over the past 5 years, VEA returned 9.65%/yr vs 10.06%/yr for ICOW. Their correlation of 0.87 suggests significant overlap in exposure. VEA charges 0.03%/yr vs 0.65%/yr for ICOW.

Performance

VEA vs. ICOW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Developed Markets ETF (VEA) and Pacer Developed Markets International Cash Cows 100 ETF (ICOW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VEA achieves a 15.19% return, which is significantly lower than ICOW's 17.35% return.

VEA

• 1D: 0.24%
• 1M: 4.15%
• YTD: 15.19%
• 6M: 18.13%
• 1Y: 32.11%
• 3Y*: 20.11%
• 5Y*: 9.65%
• 10Y*: 10.13%

ICOW

• 1D: 0.00%
• 1M: 1.48%
• YTD: 17.35%
• 6M: 18.03%
• 1Y: 38.86%
• 3Y*: 20.34%
• 5Y*: 10.06%
• 10Y*: —

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

VEA vs. ICOW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEA Vanguard FTSE Developed Markets ETF	15.19%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	9.69%
ICOW Pacer Developed Markets International Cash Cows 100 ETF	17.35%	36.95%	-2.59%	18.94%	-7.98%	11.52%	7.20%	17.91%	-16.09%	16.98%

Correlation

The correlation between VEA and ICOW is 0.85, 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	0.85
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.89
Correlation (All Time) Calculated using the full available price history since Jun 20, 2017	0.87

The correlation between VEA and ICOW has been stable across timeframes, ranging from 0.85 to 0.89 - a consistent structural relationship.

VEA vs. ICOW - Sectors Allocation Comparison

Sectors	VEA	ICOW
Financial Services	23.3%	-
Industrials	19.2%	28.7%
Technology	13.8%	6.2%
Healthcare	8.2%	7.1%
Basic Materials	7.5%	5.4%
Consumer Cyclical	7.5%	11.6%
Consumer Defensive	5.6%	8.5%
Energy	5.4%	23.7%
Communication Services	3.4%	8.9%
Utilities	3.3%	-
Real Estate	2.7%	-

Return for Risk

VEA vs. ICOW — 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: 63
VEA Sortino Ratio Rank: 62
VEA Omega Ratio Rank: 63
VEA Calmar Ratio Rank: 57
VEA Martin Ratio Rank: 61

ICOW

ICOW Risk / Return Rank: 85
ICOW Sharpe Ratio Rank: 87
ICOW Sortino Ratio Rank: 83
ICOW Omega Ratio Rank: 84
ICOW Calmar Ratio Rank: 87
ICOW Martin Ratio Rank: 85

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. ICOW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Developed Markets ETF (VEA) and Pacer Developed Markets International Cash Cows 100 ETF (ICOW). 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.

	VEA	ICOW	Difference
Sharpe ratio: Return per unit of total volatility	2.06	2.85	-0.78
Sortino ratio: Return per unit of downside risk	2.84	3.70	-0.85
Omega ratio: Gain probability vs. loss probability	1.37	1.50	-0.13
Calmar ratio: Return relative to maximum drawdown	2.77	4.87	-2.10
Martin ratio: Return relative to average drawdown	10.82	17.40	-6.59
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VEA vs. ICOW - Sharpe Ratio Comparison

The current VEA Sharpe Ratio is 2.06, which is comparable to the ICOW Sharpe Ratio of 2.85. The chart below compares the historical Sharpe Ratios of VEA and ICOW, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VEA	ICOW	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.06	2.85	-0.78
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.59	0.61	-0.02
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.59	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.25	0.55	-0.30

Drawdowns

VEA vs. ICOW - Drawdown Comparison

The maximum VEA drawdown since its inception was -60.68%, which is greater than ICOW's maximum drawdown of -43.49%. Use the drawdown chart below to compare losses from any high point for VEA and ICOW.

Drawdown Indicators

	VEA	ICOW	Difference
Max Drawdown Largest peak-to-trough decline	-60.68%	-43.49%	-17.19%
Max Drawdown (1Y) Largest decline over 1 year	-11.63%	-8.02%	-3.61%
Max Drawdown (3Y) Largest decline over 3 years	-13.45%	-14.81%	+1.36%
Max Drawdown (5Y) Largest decline over 5 years	-29.71%	-28.48%	-1.23%
Max Drawdown (10Y) Largest decline over 10 years	-35.73%	—	—
Current Drawdown Current decline from peak	-0.66%	-0.63%	-0.03%
Average Drawdown Average peak-to-trough decline	-13.29%	-7.58%	-5.71%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.98%	2.24%	+0.74%

Volatility

VEA vs. ICOW - Volatility Comparison

Vanguard FTSE Developed Markets ETF (VEA) has a higher volatility of 5.49% compared to Pacer Developed Markets International Cash Cows 100 ETF (ICOW) at 3.99%. This indicates that VEA's price experiences larger fluctuations and is considered to be riskier than ICOW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEA	ICOW	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.49%	3.99%	+1.50%
Volatility (6M) Calculated over the trailing 6-month period	13.32%	10.58%	+2.74%
Volatility (1Y) Calculated over the trailing 1-year period	15.64%	13.72%	+1.92%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.54%	16.64%	-0.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.35%	18.46%	-1.11%

VEA vs. ICOW - Expense Ratio Comparison

VEA has a 0.03% expense ratio, which is lower than ICOW's 0.65% expense ratio.

Dividends

VEA vs. ICOW - Dividend Comparison

VEA's dividend yield for the trailing twelve months is around 2.61%, less than ICOW's 2.71% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ICOW Pacer Developed Markets International Cash Cows 100 ETF	2.71%	3.03%	4.39%	3.61%	5.26%	2.11%	2.46%	3.10%	2.61%	0.80%	0.00%	0.00%
VEA Vanguard FTSE Developed Markets ETF	2.61%	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 ICOW in my portfolio?

VEA and ICOW have a correlation of 0.85, 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 ICOW?

VEA has higher volatility (5.49%) compared to ICOW (3.99%). In terms of maximum drawdown, VEA dropped -60.68% vs ICOW's -43.49%.

Which ETF is better, VEA or ICOW?

On 5-year performance, ICOW leads with 10.06% vs 9.65% for VEA. On fees, VEA is cheaper at 0.03% per year. On volatility, ICOW has been the lower-risk option at 3.99%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VEA or ICOW?

Over the 5-year period, ICOW has performed better with a 10.06% return vs 9.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VEA or ICOW?

VEA is cheaper with a 0.03% expense ratio, compared with 0.65% for ICOW.

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

ICOW has the higher dividend yield at 2.71%, compared with 2.61% for VEA.

What is the main difference between VEA and ICOW?

VEA tracks FTSE Developed All Cap ex US Index, while ICOW tracks Pacer Developed Markets International Cash Cows 100 Index. They also come from different issuers: Vanguard and Pacer. Their fees differ too: 0.03% for VEA and 0.65% for ICOW.

Which has better risk-adjusted returns?

ICOW currently has the higher Sharpe Ratio (2.85 vs 2.06), 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.