VEA vs. PXF

Last updated Jun 13, 2026

VEA (Vanguard FTSE Developed Markets ETF) and PXF (Invesco FTSE RAFI Developed Markets ex-U.S. ETF) are both Foreign Large Cap Equities funds - VEA tracks the FTSE Developed All Cap ex US Index while PXF tracks the FTSE RAFI Developed Markets ex-U.S. Index. Both are passively managed. Over the past 10 years, VEA returned 10.72%/yr vs 12.26%/yr for PXF. Their correlation of 0.94 suggests significant overlap in exposure. VEA charges 0.03%/yr vs 0.45%/yr for PXF.

Performance

VEA vs. PXF - Performance Comparison

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

Returns By Period

In the year-to-date period, VEA achieves a 14.73% return, which is significantly lower than PXF's 18.79% return. Over the past 10 years, VEA has underperformed PXF with an annualized return of 10.72%, while PXF has yielded a comparatively higher 12.26% annualized return.

VEA

• 1D: 0.34%
• 1M: 1.30%
• YTD: 14.73%
• 6M: 16.65%
• 1Y: 29.82%
• 3Y*: 19.03%
• 5Y*: 9.51%
• 10Y*: 10.72%

PXF

• 1D: 0.34%
• 1M: 0.89%
• YTD: 18.79%
• 6M: 20.98%
• 1Y: 39.76%
• 3Y*: 23.81%
• 5Y*: 13.18%
• 10Y*: 12.26%

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

VEA vs. PXF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEA Vanguard FTSE Developed Markets ETF	14.73%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	26.42%
PXF Invesco FTSE RAFI Developed Markets ex-U.S. ETF	18.79%	42.51%	4.54%	18.46%	-9.09%	15.93%	2.58%	17.50%	-14.84%	24.52%

Correlation

The correlation between VEA and PXF is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.97
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (10Y) Calculated over the trailing 10-year period	0.97
Correlation (All Time) Calculated using the full available price history since Jul 26, 2007	0.94

The correlation between VEA and PXF has been stable across timeframes, ranging from 0.94 to 0.97 - a consistent structural relationship.

VEA vs. PXF - Sectors Allocation Comparison

Sectors	VEA	PXF
Financial Services	23.3%	19.7%
Industrials	19.2%	15.1%
Technology	13.8%	11.4%
Healthcare	8.2%	7.2%
Basic Materials	7.5%	10.1%
Consumer Cyclical	7.5%	10.2%
Consumer Defensive	5.6%	6.1%
Energy	5.4%	10.6%
Communication Services	3.4%	4.3%
Utilities	3.3%	3.6%
Real Estate	2.7%	1.8%

Return for Risk

VEA vs. PXF — Risk / Return Rank

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

VEA

VEA Risk / Return Rank: 62
VEA Sharpe Ratio Rank: 63
VEA Sortino Ratio Rank: 62
VEA Omega Ratio Rank: 63
VEA Calmar Ratio Rank: 59
VEA Martin Ratio Rank: 63

PXF

PXF Risk / Return Rank: 83
PXF Sharpe Ratio Rank: 87
PXF Sortino Ratio Rank: 84
PXF Omega Ratio Rank: 85
PXF Calmar Ratio Rank: 80
PXF Martin Ratio Rank: 80

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. PXF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Developed Markets ETF (VEA) and Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF). 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	PXF	Difference
Sharpe ratio: Return per unit of total volatility	1.81	2.47	-0.66
Sortino ratio: Return per unit of downside risk	2.50	3.25	-0.75
Omega ratio: Gain probability vs. loss probability	1.33	1.45	-0.12
Calmar ratio: Return relative to maximum drawdown	2.58	3.66	-1.08
Martin ratio: Return relative to average drawdown	9.92	13.76	-3.84

VEA vs. PXF - Sharpe Ratio Comparison

The current VEA Sharpe Ratio is 1.81, which is comparable to the PXF Sharpe Ratio of 2.47. The chart below compares the historical Sharpe Ratios of VEA and PXF, 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. PXF - Drawdown Comparison

The maximum VEA drawdown since its inception was -60.68%, smaller than the maximum PXF drawdown of -64.74%. Use the drawdown chart below to compare losses from any high point for VEA and PXF.

Drawdown Indicators

	VEA	PXF	Difference
Max Drawdown Largest peak-to-trough decline	-60.68%	-64.74%	+4.06%
Max Drawdown (1Y) Largest decline over 1 year	-11.63%	-10.91%	-0.72%
Max Drawdown (3Y) Largest decline over 3 years	-13.45%	-14.06%	+0.61%
Max Drawdown (5Y) Largest decline over 5 years	-29.71%	-26.82%	-2.89%
Max Drawdown (10Y) Largest decline over 10 years	-35.73%	-41.59%	+5.86%
Current Drawdown Current decline from peak	-1.06%	-2.04%	+0.98%
Average Drawdown Average peak-to-trough decline	-13.28%	-15.25%	+1.97%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.02%	2.90%	+0.12%

Volatility

VEA vs. PXF - Volatility Comparison

Vanguard FTSE Developed Markets ETF (VEA) and Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF) have volatilities of 6.84% and 6.76%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEA	PXF	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.84%	6.76%	+0.08%
Volatility (6M) Calculated over the trailing 6-month period	14.38%	13.95%	+0.43%
Volatility (1Y) Calculated over the trailing 1-year period	16.58%	16.18%	+0.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.72%	16.62%	+0.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.40%	18.07%	-0.67%

VEA vs. PXF - Expense Ratio Comparison

VEA has a 0.03% expense ratio, which is lower than PXF's 0.45% expense ratio.

Dividends

VEA vs. PXF - Dividend Comparison

VEA's dividend yield for the trailing twelve months is around 2.62%, less than PXF's 3.12% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PXF Invesco FTSE RAFI Developed Markets ex-U.S. ETF	3.12%	3.64%	3.48%	3.55%	3.58%	3.74%	2.11%	3.50%	3.38%	2.78%	3.21%	3.10%
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 PXF in my portfolio?

With a correlation of 0.97, VEA and PXF 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 PXF?

VEA has higher volatility (6.84%) compared to PXF (6.76%). In terms of maximum drawdown, VEA dropped -60.68% vs PXF's -64.74%.

Which ETF is better, VEA or PXF?

On 10-year performance, PXF leads with 12.26% vs 10.72% for VEA. On fees, VEA is cheaper at 0.03% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VEA or PXF?

Over the 10-year period, PXF has performed better with a 12.26% return vs 10.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VEA or PXF?

VEA is cheaper with a 0.03% expense ratio, compared with 0.45% for PXF.

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

PXF has the higher dividend yield at 3.12%, compared with 2.62% for VEA.

What is the main difference between VEA and PXF?

VEA tracks FTSE Developed All Cap ex US Index, while PXF tracks FTSE RAFI Developed Markets ex-U.S. Index. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.03% for VEA and 0.45% for PXF.

Which has better risk-adjusted returns?

PXF currently has the higher Sharpe Ratio (2.47 vs 1.81), 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.