VEA vs. VEU
Compare and contrast key facts about Vanguard FTSE Developed Markets ETF (VEA) and Vanguard FTSE All-World ex-US ETF (VEU).
VEA and VEU are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VEA is a passively managed fund by Vanguard that tracks the performance of the MSCI EAFE Index. It was launched on Jul 20, 2007. VEU is a passively managed fund by Vanguard that tracks the performance of the FTSE All-World ex US Index. It was launched on Mar 2, 2007. Both VEA and VEU are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VEA or VEU.
Performance
VEA vs. VEU - Performance Comparison
Returns By Period
In the year-to-date period, VEA achieves a 4.47% return, which is significantly lower than VEU's 6.62% return. Over the past 10 years, VEA has outperformed VEU with an annualized return of 5.25%, while VEU has yielded a comparatively lower 4.80% annualized return.
VEA
4.47%
-4.06%
-1.59%
11.38%
5.86%
5.25%
VEU
6.62%
-4.21%
-0.29%
12.64%
5.54%
4.80%
Key characteristics
| VEA | VEU | |
|---|---|---|
| Sharpe Ratio | 0.86 | 0.96 |
| Sortino Ratio | 1.25 | 1.40 |
| Omega Ratio | 1.15 | 1.17 |
| Calmar Ratio | 1.25 | 1.14 |
| Martin Ratio | 4.05 | 4.79 |
| Ulcer Index | 2.70% | 2.53% |
| Daily Std Dev | 12.79% | 12.62% |
| Max Drawdown | -60.70% | -61.52% |
| Current Drawdown | -7.78% | -7.46% |
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VEA vs. VEU - Expense Ratio Comparison
VEA has a 0.05% expense ratio, which is lower than VEU's 0.07% 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%.
Correlation
The correlation between VEA and VEU is 0.97, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Risk-Adjusted Performance
VEA vs. VEU - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Developed Markets ETF (VEA) and Vanguard FTSE All-World ex-US ETF (VEU). 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.
Dividends
VEA vs. VEU - Dividend Comparison
VEA's dividend yield for the trailing twelve months is around 3.06%, more than VEU's 2.99% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VEA Vanguard FTSE Developed Markets ETF | 3.06% | 3.16% | 2.91% | 3.16% | 2.04% | 3.04% | 3.35% | 2.77% | 3.05% | 2.92% | 3.68% | 2.60% |
VEU Vanguard FTSE All-World ex-US ETF | 2.99% | 3.32% | 3.12% | 3.07% | 2.00% | 3.10% | 3.27% | 2.66% | 2.96% | 2.95% | 3.52% | 2.66% |
Drawdowns
VEA vs. VEU - Drawdown Comparison
The maximum VEA drawdown since its inception was -60.70%, roughly equal to the maximum VEU drawdown of -61.52%. Use the drawdown chart below to compare losses from any high point for VEA and VEU. For additional features, visit the drawdowns tool.
Volatility
VEA vs. VEU - Volatility Comparison
Vanguard FTSE Developed Markets ETF (VEA) and Vanguard FTSE All-World ex-US ETF (VEU) have volatilities of 3.61% and 3.80%, 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.