VEA vs. VTMGX

Last updated Jun 26, 2026

VEA (Vanguard FTSE Developed Markets ETF) and VTMGX (Vanguard Developed Markets Index Fund Admiral Shares) are both Foreign Large Cap Equities funds from Vanguard tracking the FTSE Developed All Cap ex US Index. Both are passively managed. Over the past 10 years, VEA returned 11.09%/yr vs 10.67%/yr for VTMGX. With a 0.98 correlation, they move nearly in lockstep. VEA charges 0.03%/yr vs 0.07%/yr for VTMGX.

Performance

VEA vs. VTMGX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Developed Markets ETF (VEA) and Vanguard Developed Markets Index Fund Admiral Shares (VTMGX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VEA achieves a 14.71% return, which is significantly higher than VTMGX's 13.18% return. Both investments have delivered pretty close results over the past 10 years, with VEA having a 11.09% annualized return and VTMGX not far behind at 10.67%.

VEA

• 1D: 1.25%
• 1M: -0.34%
• YTD: 14.71%
• 6M: 14.32%
• 1Y: 31.05%
• 3Y*: 19.91%
• 5Y*: 9.74%
• 10Y*: 11.09%

VTMGX

• 1D: 0.18%
• 1M: -1.48%
• YTD: 13.18%
• 6M: 12.96%
• 1Y: 29.22%
• 3Y*: 19.44%
• 5Y*: 9.44%
• 10Y*: 10.67%

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

VEA vs. VTMGX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEA Vanguard FTSE Developed Markets ETF	14.71%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	26.42%
VTMGX Vanguard Developed Markets Index Fund Admiral Shares	13.18%	35.17%	3.03%	17.65%	-15.33%	11.39%	10.25%	22.04%	-14.48%	26.39%

Correlation

The correlation between VEA and VTMGX is 0.94, 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	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.97
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 26, 2007	0.98

The correlation between VEA and VTMGX has been stable across timeframes, ranging from 0.94 to 0.98 - a consistent structural relationship.

VEA vs. VTMGX - Sectors Allocation Comparison

Sectors	VEA	VTMGX
Financial Services	22.3%	23.3%
Industrials	17.5%	19.2%
Technology	16.6%	13.8%
Healthcare	7.6%	8.2%
Basic Materials	7.5%	7.5%
Consumer Cyclical	7.4%	7.5%
Consumer Defensive	5.5%	5.6%
Energy	4.7%	5.4%
Communication Services	3.2%	3.4%
Utilities	3.0%	3.3%
Real Estate	2.5%	2.7%

Return for Risk

VEA vs. VTMGX — Risk / Return Rank

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

VEA

VEA Risk / Return Rank: 65
VEA Sharpe Ratio Rank: 66
VEA Sortino Ratio Rank: 63
VEA Omega Ratio Rank: 67
VEA Calmar Ratio Rank: 63
VEA Martin Ratio Rank: 65

VTMGX

VTMGX Risk / Return Rank: 52
VTMGX Sharpe Ratio Rank: 52
VTMGX Sortino Ratio Rank: 48
VTMGX Omega Ratio Rank: 52
VTMGX Calmar Ratio Rank: 54
VTMGX Martin Ratio Rank: 53

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. VTMGX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Developed Markets ETF (VEA) and Vanguard Developed Markets Index Fund Admiral Shares (VTMGX). 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	VTMGX	Difference
Sharpe ratio: Return per unit of total volatility	1.86	1.79	+0.07
Sortino ratio: Return per unit of downside risk	2.53	2.42	+0.11
Omega ratio: Gain probability vs. loss probability	1.34	1.33	+0.01
Calmar ratio: Return relative to maximum drawdown	2.68	2.48	+0.20
Martin ratio: Return relative to average drawdown	10.30	9.46	+0.84

VEA vs. VTMGX - Sharpe Ratio Comparison

The current VEA Sharpe Ratio is 1.86, which is comparable to the VTMGX Sharpe Ratio of 1.79. The chart below compares the historical Sharpe Ratios of VEA and VTMGX, 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. VTMGX - Drawdown Comparison

The maximum VEA drawdown since its inception was -60.68%, roughly equal to the maximum VTMGX drawdown of -60.58%. Use the drawdown chart below to compare losses from any high point for VEA and VTMGX.

Drawdown Indicators

	VEA	VTMGX	Difference
Max Drawdown Largest peak-to-trough decline	-60.68%	-60.58%	-0.10%
Max Drawdown (1Y) Largest decline over 1 year	-11.63%	-11.67%	+0.04%
Max Drawdown (3Y) Largest decline over 3 years	-13.45%	-13.18%	-0.27%
Max Drawdown (5Y) Largest decline over 5 years	-29.71%	-29.71%	0.00%
Max Drawdown (10Y) Largest decline over 10 years	-35.73%	-35.68%	-0.05%
Current Drawdown Current decline from peak	-1.70%	-2.88%	+1.18%
Average Drawdown Average peak-to-trough decline	-13.25%	-14.63%	+1.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.02%	3.05%	-0.03%

Volatility

VEA vs. VTMGX - Volatility Comparison

Vanguard FTSE Developed Markets ETF (VEA) and Vanguard Developed Markets Index Fund Admiral Shares (VTMGX) have volatilities of 6.94% and 6.93%, 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	VTMGX	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.94%	6.93%	+0.01%
Volatility (6M) Calculated over the trailing 6-month period	14.77%	13.99%	+0.78%
Volatility (1Y) Calculated over the trailing 1-year period	16.78%	16.23%	+0.55%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.77%	16.09%	+0.68%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.20%	16.40%	+0.80%

VEA vs. VTMGX - Expense Ratio Comparison

VEA has a 0.03% expense ratio, which is lower than VTMGX'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%.

Dividends

VEA vs. VTMGX - Dividend Comparison

VEA's dividend yield for the trailing twelve months is around 2.55%, which matches VTMGX's 2.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VEA Vanguard FTSE Developed Markets ETF	2.55%	3.22%	3.35%	3.15%	2.91%	3.16%	2.04%	3.04%	3.35%	2.77%	3.05%	2.92%
VTMGX Vanguard Developed Markets Index Fund Admiral Shares	2.56%	3.20%	3.34%	3.14%	2.88%	3.14%	2.02%	3.03%	3.33%	2.77%	3.06%	2.91%

Frequently Asked Questions

Can I hold both VEA and VTMGX in my portfolio?

With a correlation of 0.94, VEA and VTMGX 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 VTMGX?

VEA has higher volatility (6.94%) compared to VTMGX (6.93%). In terms of maximum drawdown, VEA dropped -60.68% vs VTMGX's -60.58%.

Which has better risk-adjusted returns?

VEA currently has the higher Sharpe Ratio (1.86 vs 1.79), 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.