VEA vs. VEU

Last updated Jun 6, 2026

VEA (Vanguard FTSE Developed Markets ETF) and VEU (Vanguard FTSE All-World ex-US ETF) are both Foreign Large Cap Equities funds from Vanguard - VEA tracks the FTSE Developed All Cap ex US Index while VEU tracks the FTSE All-World ex US Index. Both are passively managed. Over the past 10 years, VEA returned 9.63%/yr vs 9.37%/yr for VEU. With a 0.97 correlation, they move nearly in lockstep. VEA charges 0.03%/yr vs 0.04%/yr for VEU.

Performance

VEA vs. VEU - Performance Comparison

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

Returns By Period

The year-to-date returns for both stocks are quite close, with VEA having a 10.91% return and VEU slightly lower at 10.46%. Both investments have delivered pretty close results over the past 10 years, with VEA having a 9.63% annualized return and VEU not far behind at 9.37%.

VEA

• 1D: -3.72%
• 1M: -2.40%
• YTD: 10.91%
• 6M: 13.57%
• 1Y: 27.20%
• 3Y*: 18.26%
• 5Y*: 8.83%
• 10Y*: 9.63%

VEU

• 1D: -3.76%
• 1M: -2.79%
• YTD: 10.46%
• 6M: 12.49%
• 1Y: 26.70%
• 3Y*: 18.01%
• 5Y*: 7.88%
• 10Y*: 9.37%

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

VEA vs. VEU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEA Vanguard FTSE Developed Markets ETF	10.91%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	26.42%
VEU Vanguard FTSE All-World ex-US ETF	10.46%	32.35%	5.56%	15.84%	-15.58%	8.27%	11.10%	21.83%	-14.18%	27.40%

Correlation

The correlation between VEA and VEU is 0.98 - 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	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.98
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.98
Correlation (All Time) Calculated using the full available price history since Jul 27, 2007	0.97

The correlation between VEA and VEU has been stable across timeframes, ranging from 0.97 to 0.98 - a consistent structural relationship.

VEA vs. VEU - Sectors Allocation Comparison

Sectors	VEA	VEU
Financial Services	23.3%	23.3%
Industrials	19.2%	15.7%
Technology	13.8%	18.5%
Healthcare	8.2%	7.1%
Basic Materials	7.5%	7.1%
Consumer Cyclical	7.5%	8.2%
Consumer Defensive	5.6%	5.1%
Energy	5.4%	5.2%
Communication Services	3.4%	4.6%
Utilities	3.3%	3.2%
Real Estate	2.7%	2.0%

Return for Risk

VEA vs. VEU — Risk / Return Rank

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

VEA

VEA Risk / Return Rank: 50
VEA Sharpe Ratio Rank: 50
VEA Sortino Ratio Rank: 48
VEA Omega Ratio Rank: 51
VEA Calmar Ratio Rank: 48
VEA Martin Ratio Rank: 54

VEU

VEU Risk / Return Rank: 50
VEU Sharpe Ratio Rank: 50
VEU Sortino Ratio Rank: 48
VEU Omega Ratio Rank: 52
VEU Calmar Ratio Rank: 48
VEU Martin Ratio Rank: 54

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. VEU - Risk-Adjusted Trends 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.

	VEA	VEU	Difference
Sharpe ratio: Return per unit of total volatility	1.70	1.70	0.00
Sortino ratio: Return per unit of downside risk	2.33	2.34	-0.01
Omega ratio: Gain probability vs. loss probability	1.31	1.32	-0.01
Calmar ratio: Return relative to maximum drawdown	2.35	2.35	0.00
Martin ratio: Return relative to average drawdown	9.12	9.08	+0.05
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. VEU - Sharpe Ratio Comparison

The current VEA Sharpe Ratio is 1.70, which is comparable to the VEU Sharpe Ratio of 1.70. The chart below compares the historical Sharpe Ratios of VEA and VEU, 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	VEU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.70	1.70	0.00
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.53	0.49	+0.04
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.56	0.55	+0.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.24	0.24	-0.01

Drawdowns

VEA vs. VEU - Drawdown Comparison

The maximum VEA drawdown since its inception was -60.68%, 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.

Drawdown Indicators

	VEA	VEU	Difference
Max Drawdown Largest peak-to-trough decline	-60.68%	-61.52%	+0.84%
Max Drawdown (1Y) Largest decline over 1 year	-11.63%	-11.43%	-0.20%
Max Drawdown (3Y) Largest decline over 3 years	-13.45%	-13.69%	+0.24%
Max Drawdown (5Y) Largest decline over 5 years	-29.71%	-29.31%	-0.40%
Max Drawdown (10Y) Largest decline over 10 years	-35.73%	-34.98%	-0.75%
Current Drawdown Current decline from peak	-4.36%	-4.55%	+0.19%
Average Drawdown Average peak-to-trough decline	-13.29%	-13.13%	-0.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.99%	2.95%	+0.04%

Volatility

VEA vs. VEU - Volatility Comparison

Vanguard FTSE Developed Markets ETF (VEA) and Vanguard FTSE All-World ex-US ETF (VEU) have volatilities of 6.17% and 6.16%, 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	VEU	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.17%	6.16%	+0.01%
Volatility (6M) Calculated over the trailing 6-month period	13.88%	13.63%	+0.25%
Volatility (1Y) Calculated over the trailing 1-year period	16.09%	15.75%	+0.34%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.62%	16.15%	+0.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.39%	17.24%	+0.15%

VEA vs. VEU - Expense Ratio Comparison

VEA has a 0.03% expense ratio, which is lower than VEU's 0.04% 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. VEU - Dividend Comparison

VEA's dividend yield for the trailing twelve months is around 2.71%, which matches VEU's 2.70% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VEA Vanguard FTSE Developed Markets ETF	2.71%	3.22%	3.35%	3.15%	2.91%	3.16%	2.04%	3.04%	3.35%	2.77%	3.05%	2.92%
VEU Vanguard FTSE All-World ex-US ETF	2.70%	3.09%	3.24%	3.32%	3.12%	3.08%	2.00%	3.10%	3.27%	2.66%	2.96%	2.95%

Frequently Asked Questions

Can I hold both VEA and VEU in my portfolio?

With a correlation of 0.98, VEA and VEU 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 VEU?

VEA has higher volatility (6.17%) compared to VEU (6.16%). In terms of maximum drawdown, VEA dropped -60.68% vs VEU's -61.52%.

Which ETF is better, VEA or VEU?

On 10-year performance, VEA leads with 9.63% vs 9.37% for VEU. 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 VEU?

Over the 10-year period, VEA has performed better with a 9.63% return vs 9.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VEA or VEU?

VEA is cheaper with a 0.03% expense ratio, compared with 0.04% for VEU.

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

VEA and VEU have nearly identical dividend yields, around 2.71%.

What is the main difference between VEA and VEU?

VEA tracks FTSE Developed All Cap ex US Index, while VEU tracks FTSE All-World ex US Index. Their fees differ too: 0.03% for VEA and 0.04% for VEU.

Which has better risk-adjusted returns?

VEU currently has the higher Sharpe Ratio (1.70 vs 1.70), 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.