VEF.TO vs. VDY.TO

Last updated Jun 4, 2026

VEF.TO (Vanguard FTSE Developed All Cap Ex US) and VDY.TO (Vanguard FTSE Canadian High Dividend Yield Index ETF) are both exchange-traded funds - VEF.TO is a Global Equities fund tracking the Spliced FTSE Developed ex US Index Hedged in CAD, while VDY.TO is a Dividend fund tracking the FTSE Canada High Dividend Yield Index. Both are passively managed. Over the past 10 years, VEF.TO returned 11.33%/yr vs 14.02%/yr for VDY.TO. A 0.67 correlation means they provide meaningful diversification when combined. Both charge a 0.22% expense ratio.

Performance

VEF.TO vs. VDY.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in Vanguard FTSE Developed All Cap Ex US (VEF.TO) and Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VEF.TO achieves a 16.05% return, which is significantly lower than VDY.TO's 20.59% return. Over the past 10 years, VEF.TO has underperformed VDY.TO with an annualized return of 11.33%, while VDY.TO has yielded a comparatively higher 14.02% annualized return.

VEF.TO

• 1D: -0.44%
• 1M: 7.02%
• YTD: 16.05%
• 6M: 18.30%
• 1Y: 33.85%
• 3Y*: 19.04%
• 5Y*: 12.71%
• 10Y*: 11.33%

VDY.TO

• 1D: -0.07%
• 1M: 4.52%
• YTD: 20.59%
• 6M: 22.32%
• 1Y: 46.18%
• 3Y*: 26.00%
• 5Y*: 17.21%
• 10Y*: 14.02%

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

VEF.TO vs. VDY.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEF.TO Vanguard FTSE Developed All Cap Ex US	16.05%	24.61%	10.91%	18.02%	-7.54%	18.04%	2.10%	22.61%	-11.96%	16.90%
VDY.TO Vanguard FTSE Canadian High Dividend Yield Index ETF	20.59%	29.20%	20.71%	8.40%	-0.23%	36.78%	-1.37%	21.43%	-10.09%	8.75%

Correlation

The correlation between VEF.TO and VDY.TO is 0.51, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.51
Correlation (3Y) Calculated over the trailing 3-year period	0.62
Correlation (5Y) Calculated over the trailing 5-year period	0.66
Correlation (10Y) Calculated over the trailing 10-year period	0.68
Correlation (All Time) Calculated using the full available price history since Nov 9, 2012	0.67

The correlation between VEF.TO and VDY.TO shifts across timeframes, from 0.51 (1 year) to 0.68 (10 years), reflecting how their relationship changes across market environments.

VEF.TO vs. VDY.TO - Sectors Allocation Comparison

Sectors	VEF.TO	VDY.TO
Financial Services	23.3%	56.0%
Industrials	19.2%	0.2%
Technology	13.8%	0.4%
Healthcare	8.2%	0.1%
Basic Materials	7.5%	2.2%
Consumer Cyclical	7.5%	3.0%
Consumer Defensive	5.6%	0.4%
Energy	5.4%	30.8%
Communication Services	3.4%	2.8%
Utilities	3.3%	4.1%
Real Estate	2.7%	-

Return for Risk

VEF.TO vs. VDY.TO — Risk / Return Rank

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

VEF.TO

VEF.TO Risk / Return Rank: 76
VEF.TO Sharpe Ratio Rank: 79
VEF.TO Sortino Ratio Rank: 78
VEF.TO Omega Ratio Rank: 81
VEF.TO Calmar Ratio Rank: 68
VEF.TO Martin Ratio Rank: 76

VDY.TO

VDY.TO Risk / Return Rank: 98
VDY.TO Sharpe Ratio Rank: 98
VDY.TO Sortino Ratio Rank: 98
VDY.TO Omega Ratio Rank: 98
VDY.TO Calmar Ratio Rank: 98
VDY.TO Martin Ratio Rank: 98

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.

VEF.TO vs. VDY.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Developed All Cap Ex US (VEF.TO) and Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO). 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.

	VEF.TO	VDY.TO	Difference
Sharpe ratio: Return per unit of total volatility	2.59	5.65	-3.06
Sortino ratio: Return per unit of downside risk	3.54	8.14	-4.60
Omega ratio: Gain probability vs. loss probability	1.50	2.14	-0.65
Calmar ratio: Return relative to maximum drawdown	3.44	14.88	-11.44
Martin ratio: Return relative to average drawdown	14.77	60.75	-45.97
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VEF.TO vs. VDY.TO - Sharpe Ratio Comparison

The current VEF.TO Sharpe Ratio is 2.59, which is lower than the VDY.TO Sharpe Ratio of 5.65. The chart below compares the historical Sharpe Ratios of VEF.TO and VDY.TO, 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

	VEF.TO	VDY.TO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.59	5.65	-3.06
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.95	1.50	-0.55
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.73	0.88	-0.15
Sharpe Ratio (All Time) Calculated using the full available price history	0.71	0.84	-0.13

Drawdowns

VEF.TO vs. VDY.TO - Drawdown Comparison

The maximum VEF.TO drawdown since its inception was -33.03%, smaller than the maximum VDY.TO drawdown of -39.21%. Use the drawdown chart below to compare losses from any high point for VEF.TO and VDY.TO.

Drawdown Indicators

	VEF.TO	VDY.TO	Difference
Max Drawdown Largest peak-to-trough decline	-33.03%	-39.21%	+6.18%
Max Drawdown (1Y) Largest decline over 1 year	-9.89%	-3.12%	-6.77%
Max Drawdown (3Y) Largest decline over 3 years	-13.78%	-10.87%	-2.91%
Max Drawdown (5Y) Largest decline over 5 years	-16.35%	-16.18%	-0.17%
Max Drawdown (10Y) Largest decline over 10 years	-33.03%	-39.21%	+6.18%
Current Drawdown Current decline from peak	-0.44%	-0.77%	+0.33%
Average Drawdown Average peak-to-trough decline	-4.27%	-4.61%	+0.34%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.30%	0.76%	+1.54%

Volatility

VEF.TO vs. VDY.TO - Volatility Comparison

Vanguard FTSE Developed All Cap Ex US (VEF.TO) has a higher volatility of 4.94% compared to Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO) at 3.31%. This indicates that VEF.TO's price experiences larger fluctuations and is considered to be riskier than VDY.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEF.TO	VDY.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.94%	3.31%	+1.63%
Volatility (6M) Calculated over the trailing 6-month period	11.06%	6.87%	+4.19%
Volatility (1Y) Calculated over the trailing 1-year period	13.11%	8.21%	+4.90%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.51%	11.56%	+1.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.50%	15.96%	-0.46%

VEF.TO vs. VDY.TO - Expense Ratio Comparison

Both VEF.TO and VDY.TO have an expense ratio of 0.22%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VEF.TO vs. VDY.TO - Dividend Comparison

VEF.TO's dividend yield for the trailing twelve months is around 2.05%, less than VDY.TO's 2.90% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VDY.TO Vanguard FTSE Canadian High Dividend Yield Index ETF	2.90%	3.59%	4.40%	4.64%	4.42%	3.58%	4.59%	4.25%	4.43%	3.82%	3.25%	4.11%
VEF.TO Vanguard FTSE Developed All Cap Ex US	2.05%	2.61%	2.55%	2.50%	2.21%	2.55%	1.73%	2.41%	2.64%	2.21%	2.31%	2.39%

Frequently Asked Questions

Can I hold both VEF.TO and VDY.TO in my portfolio?

VEF.TO and VDY.TO have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VEF.TO or VDY.TO?

Both ETFs have the same 0.22% expense ratio. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VEF.TO or VDY.TO?

VEF.TO and VDY.TO have the same expense ratio: 0.22% per year.

What is the main difference between VEF.TO and VDY.TO?

VEF.TO is categorized as Global Equities, while VDY.TO is Dividend. VEF.TO tracks Spliced FTSE Developed ex US Index Hedged in CAD, while VDY.TO tracks FTSE Canada High Dividend Yield Index.