VEU.AX vs. VHY.AX

Last updated Jul 16, 2026

VEU.AX (Vanguard All-World ex-US Shares Index ETF) and VHY.AX (Vanguard Australian Shares High Yield ETF) are both exchange-traded funds - VEU.AX is a Global Equities fund tracking the Vanguard All-World ex-US Shares Index 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, VEU.AX returned 10.36%/yr vs 9.28%/yr for VHY.AX. A 0.51 correlation means they provide meaningful diversification when combined.

Performance

VEU.AX vs. VHY.AX - Performance Comparison

The chart below illustrates the hypothetical performance of a A$10,000 investment in Vanguard All-World ex-US Shares Index ETF (VEU.AX) and Vanguard Australian Shares High Yield ETF (VHY.AX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with VEU.AX having a 8.18% return and VHY.AX slightly higher at 8.22%. Over the past 10 years, VEU.AX has outperformed VHY.AX with an annualized return of 10.36%, while VHY.AX has yielded a comparatively lower 9.28% annualized return.

VEU.AX

• 1D: -0.73%
• 1M: -1.21%
• 6M: 4.42%
• YTD: 8.18%
• 1Y: 18.44%
• 3Y*: 17.07%
• 5Y*: 10.68%
• 10Y*: 10.36%

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)

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

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEU.AX Vanguard All-World ex-US Shares Index ETF	8.18%	23.17%	16.80%	14.76%	-8.44%	14.15%	2.08%	22.31%	-6.28%	15.86%
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 VEU.AX and VHY.AX is 0.54, 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	0.54
Correlation (3Y) Calculated over the trailing 3-year period	0.50
Correlation (5Y) Calculated over the trailing 5-year period	0.54
Correlation (10Y) Calculated over the trailing 10-year period	0.55
Correlation (All Time) Calculated using the full available price history since May 23, 2011	0.51

The correlation between VEU.AX and VHY.AX has been stable across timeframes, ranging from 0.50 to 0.55 - a consistent structural relationship.

Return for Risk

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

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

VEU.AX

VEU.AX Risk / Return Rank: 51
VEU.AX Sharpe Ratio Rank: 51
VEU.AX Sortino Ratio Rank: 52
VEU.AX Omega Ratio Rank: 57
VEU.AX Calmar Ratio Rank: 44
VEU.AX Martin Ratio Rank: 51

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.

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

This table presents a comparison of risk-adjusted performance metrics for Vanguard All-World ex-US Shares Index ETF (VEU.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.

	VEU.AX	VHY.AX	Difference
Sharpe ratio: Return per unit of total volatility	1.46	1.49	-0.03
Sortino ratio: Return per unit of downside risk	2.10	2.15	-0.05
Omega ratio: Gain probability vs. loss probability	1.29	1.27	+0.02
Calmar ratio: Return relative to maximum drawdown	1.83	3.18	-1.35
Martin ratio: Return relative to average drawdown	7.08	7.34	-0.26

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

The current VEU.AX Sharpe Ratio is 1.46, which is comparable to the VHY.AX Sharpe Ratio of 1.49. The chart below compares the historical Sharpe Ratios of VEU.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

VEU.AX vs. VHY.AX - Drawdown Comparison

The maximum VEU.AX drawdown since its inception was -23.05%, smaller than the maximum VHY.AX drawdown of -35.54%. Use the drawdown chart below to compare losses from any high point for VEU.AX and VHY.AX.

Drawdown Indicators

	VEU.AX	VHY.AX	Difference
Max Drawdown Largest peak-to-trough decline	-23.05%	-35.54%	+12.49%
Max Drawdown (1Y) Largest decline over 1 year	-9.87%	-4.84%	-5.03%
Max Drawdown (3Y) Largest decline over 3 years	-9.87%	-11.68%	+1.81%
Max Drawdown (5Y) Largest decline over 5 years	-18.46%	-14.41%	-4.05%
Max Drawdown (10Y) Largest decline over 10 years	-23.05%	-35.54%	+12.49%
Current Drawdown Current decline from peak	-2.39%	-1.80%	-0.59%
Average Drawdown Average peak-to-trough decline	-5.33%	-4.87%	-0.46%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.60%	2.14%	+0.46%

Volatility

VEU.AX vs. VHY.AX - Volatility Comparison

Vanguard All-World ex-US Shares Index ETF (VEU.AX) has a higher volatility of 3.99% compared to Vanguard Australian Shares High Yield ETF (VHY.AX) at 2.23%. This indicates that VEU.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

	VEU.AX	VHY.AX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.99%	2.23%	+1.76%
Volatility (6M) Calculated over the trailing 6-month period	11.17%	8.14%	+3.03%
Volatility (1Y) Calculated over the trailing 1-year period	12.40%	10.37%	+2.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.20%	12.70%	-1.50%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.70%	14.30%	-2.60%

Dividends

VEU.AX vs. VHY.AX - Dividend Comparison

VEU.AX's dividend yield for the trailing twelve months is around 2.65%, less than VHY.AX's 2.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VEU.AX Vanguard All-World ex-US Shares Index ETF	2.65%	3.11%	3.69%	4.26%	3.33%	3.09%	2.32%	3.17%	1.63%	0.87%	1.05%	1.21%
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 VEU.AX and VHY.AX in my portfolio?

VEU.AX and VHY.AX have a correlation of 0.54, 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 VEU.AX and VHY.AX?

VEU.AX is categorized as Global Equities, while VHY.AX is Dividend. VEU.AX tracks Vanguard All-World ex-US Shares Index Index, while VHY.AX tracks FTSE Australia High Dividend Yield Index.