VEQ.AX vs. VHY.AX

Last updated Jul 16, 2026

VEQ.AX (Vanguard FTSE Europe Shares ETF) and VHY.AX (Vanguard Australian Shares High Yield ETF) are both exchange-traded funds - VEQ.AX is a Europe Equities fund tracking the Vanguard FTSE Europe Shares Index, while VHY.AX is a Dividend fund tracking the FTSE Australia High Dividend Yield Index. Both are passively managed. Over the past 10 years, VEQ.AX returned 9.65%/yr vs 9.28%/yr for VHY.AX. At a 0.49 correlation, their price movements are largely independent.

Performance

VEQ.AX vs. VHY.AX - Performance Comparison

The chart below illustrates the hypothetical performance of a A$10,000 investment in Vanguard FTSE Europe Shares ETF (VEQ.AX) and Vanguard Australian Shares High Yield ETF (VHY.AX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VEQ.AX achieves a 2.32% return, which is significantly lower than VHY.AX's 8.22% return. Both investments have delivered pretty close results over the past 10 years, with VEQ.AX having a 9.65% annualized return and VHY.AX not far behind at 9.28%.

VEQ.AX

• 1D: 0.47%
• 1M: 0.55%
• 6M: 0.83%
• YTD: 2.32%
• 1Y: 8.94%
• 3Y*: 13.35%
• 5Y*: 9.30%
• 10Y*: 9.65%

VHY.AX

• 1D: 0.20%
• 1M: -0.91%
• 6M: 9.04%
• YTD: 8.22%
• 1Y: 15.11%
• 3Y*: 12.91%
• 5Y*: 9.87%
• 10Y*: 9.28%

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

VEQ.AX vs. VHY.AX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEQ.AX Vanguard FTSE Europe Shares ETF	2.32%	25.53%	10.16%	16.98%	-10.66%	21.83%	-3.34%	24.19%	-6.81%	16.93%
VHY.AX Vanguard Australian Shares High Yield ETF	8.22%	14.77%	9.04%	9.83%	7.71%	16.73%	1.71%	20.44%	-8.52%	7.84%

Correlation

The correlation between VEQ.AX and VHY.AX is 0.52, 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	0.52
Correlation (3Y) Calculated over the trailing 3-year period	0.46
Correlation (5Y) Calculated over the trailing 5-year period	0.51
Correlation (10Y) Calculated over the trailing 10-year period	0.50
Correlation (All Time) Calculated using the full available price history since Dec 9, 2015	0.49

The correlation between VEQ.AX and VHY.AX has been stable across timeframes, ranging from 0.46 to 0.52 - a consistent structural relationship.

Return for Risk

VEQ.AX vs. VHY.AX — Risk / Return Rank

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

VEQ.AX

VEQ.AX Risk / Return Rank: 25
VEQ.AX Sharpe Ratio Rank: 26
VEQ.AX Sortino Ratio Rank: 25
VEQ.AX Omega Ratio Rank: 27
VEQ.AX Calmar Ratio Rank: 21
VEQ.AX Martin Ratio Rank: 25

VHY.AX

VHY.AX Risk / Return Rank: 58
VHY.AX Sharpe Ratio Rank: 53
VHY.AX Sortino Ratio Rank: 55
VHY.AX Omega Ratio Rank: 52
VHY.AX Calmar Ratio Rank: 77
VHY.AX 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.

VEQ.AX vs. VHY.AX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Europe Shares ETF (VEQ.AX) and Vanguard Australian Shares High Yield ETF (VHY.AX). 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.

	VEQ.AX	VHY.AX	Difference
Sharpe ratio: Return per unit of total volatility	0.78	1.49	-0.71
Sortino ratio: Return per unit of downside risk	1.18	2.15	-0.97
Omega ratio: Gain probability vs. loss probability	1.16	1.27	-0.11
Calmar ratio: Return relative to maximum drawdown	0.79	3.18	-2.39
Martin ratio: Return relative to average drawdown	2.57	7.34	-4.77

VEQ.AX vs. VHY.AX - Sharpe Ratio Comparison

The current VEQ.AX Sharpe Ratio is 0.78, which is lower than the VHY.AX Sharpe Ratio of 1.49. The chart below compares the historical Sharpe Ratios of VEQ.AX and VHY.AX, 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

VEQ.AX vs. VHY.AX - Drawdown Comparison

The maximum VEQ.AX drawdown since its inception was -28.50%, smaller than the maximum VHY.AX drawdown of -35.54%. Use the drawdown chart below to compare losses from any high point for VEQ.AX and VHY.AX.

Drawdown Indicators

	VEQ.AX	VHY.AX	Difference
Max Drawdown Largest peak-to-trough decline	-28.50%	-35.54%	+7.04%
Max Drawdown (1Y) Largest decline over 1 year	-12.42%	-4.84%	-7.58%
Max Drawdown (3Y) Largest decline over 3 years	-12.42%	-11.68%	-0.74%
Max Drawdown (5Y) Largest decline over 5 years	-25.44%	-14.41%	-11.03%
Max Drawdown (10Y) Largest decline over 10 years	-28.50%	-35.54%	+7.04%
Current Drawdown Current decline from peak	-1.79%	-1.80%	+0.01%
Average Drawdown Average peak-to-trough decline	-5.47%	-4.87%	-0.60%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.86%	2.14%	+1.72%

Volatility

VEQ.AX vs. VHY.AX - Volatility Comparison

Vanguard FTSE Europe Shares ETF (VEQ.AX) has a higher volatility of 2.53% compared to Vanguard Australian Shares High Yield ETF (VHY.AX) at 2.23%. This indicates that VEQ.AX's price experiences larger fluctuations and is considered to be riskier than VHY.AX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEQ.AX	VHY.AX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.53%	2.23%	+0.30%
Volatility (6M) Calculated over the trailing 6-month period	11.15%	8.14%	+3.01%
Volatility (1Y) Calculated over the trailing 1-year period	12.62%	10.37%	+2.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.43%	12.70%	+0.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.12%	14.30%	-0.18%

Dividends

VEQ.AX vs. VHY.AX - Dividend Comparison

VEQ.AX's dividend yield for the trailing twelve months is around 1.52%, less than VHY.AX's 2.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VEQ.AX Vanguard FTSE Europe Shares ETF	1.52%	2.28%	1.39%	2.56%	2.06%	1.91%	2.32%	2.62%	2.36%	1.77%	2.35%	0.00%
VHY.AX Vanguard Australian Shares High Yield ETF	2.76%	8.37%	2.92%	3.73%	5.02%	4.84%	3.54%	5.35%	7.81%	5.69%	3.84%	6.40%

Frequently Asked Questions

Can I hold both VEQ.AX and VHY.AX in my portfolio?

VEQ.AX and VHY.AX have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

What is the main difference between VEQ.AX and VHY.AX?

VEQ.AX is categorized as Europe Equities, while VHY.AX is Dividend. VEQ.AX tracks Vanguard FTSE Europe Shares Index, while VHY.AX tracks FTSE Australia High Dividend Yield Index.