VEU vs. ACWX

Last updated Jun 24, 2026

VEU (Vanguard FTSE All-World ex-US ETF) and ACWX (iShares MSCI ACWI ex U.S. ETF) are both Foreign Large Cap Equities funds - VEU tracks the FTSE All-World ex US Index while ACWX tracks the MSCI All Country World ex-U.S. Index. Both are passively managed. Over the past 10 years, VEU returned 10.40%/yr vs 10.06%/yr for ACWX. With a 0.98 correlation, they move nearly in lockstep. VEU charges 0.04%/yr vs 0.32%/yr for ACWX.

Performance

VEU vs. ACWX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE All-World ex-US ETF (VEU) and iShares MSCI ACWI ex U.S. ETF (ACWX). 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 VEU having a 13.01% return and ACWX slightly lower at 12.88%. Both investments have delivered pretty close results over the past 10 years, with VEU having a 10.40% annualized return and ACWX not far behind at 10.06%.

VEU

• 1D: -3.06%
• 1M: 0.69%
• YTD: 13.01%
• 6M: 12.81%
• 1Y: 30.08%
• 3Y*: 19.26%
• 5Y*: 8.60%
• 10Y*: 10.40%

ACWX

• 1D: -3.17%
• 1M: 0.91%
• YTD: 12.88%
• 6M: 12.78%
• 1Y: 29.85%
• 3Y*: 19.03%
• 5Y*: 8.31%
• 10Y*: 10.06%

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

VEU vs. ACWX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEU Vanguard FTSE All-World ex-US ETF	13.01%	32.35%	5.56%	15.84%	-15.58%	8.27%	11.10%	21.83%	-14.18%	27.40%
ACWX iShares MSCI ACWI ex U.S. ETF	12.88%	32.59%	5.17%	15.63%	-16.07%	7.67%	10.29%	21.05%	-13.99%	27.20%

Correlation

The correlation between VEU and ACWX is 1.00 - 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	1.00
Correlation (3Y) Calculated over the trailing 3-year period	1.00
Correlation (5Y) Calculated over the trailing 5-year period	1.00
Correlation (10Y) Calculated over the trailing 10-year period	1.00
Correlation (All Time) Calculated using the full available price history since Mar 31, 2008	0.98

The correlation between VEU and ACWX has been stable across timeframes, ranging from 0.98 to 1.00 - a consistent structural relationship.

VEU vs. ACWX - Sectors Allocation Comparison

Sectors	VEU	ACWX
Financial Services	22.6%	23.7%
Technology	21.6%	23.8%
Industrials	15.0%	13.6%
Consumer Cyclical	8.0%	7.0%
Basic Materials	7.1%	6.6%
Healthcare	6.7%	6.5%
Consumer Defensive	4.9%	5.0%
Energy	4.7%	4.4%
Communication Services	4.5%	4.6%
Utilities	3.0%	2.9%
Real Estate	1.9%	1.3%

Return for Risk

VEU vs. ACWX — Risk / Return Rank

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

VEU

VEU Risk / Return Rank: 56
VEU Sharpe Ratio Rank: 56
VEU Sortino Ratio Rank: 54
VEU Omega Ratio Rank: 57
VEU Calmar Ratio Rank: 55
VEU Martin Ratio Rank: 59

ACWX

ACWX Risk / Return Rank: 55
ACWX Sharpe Ratio Rank: 55
ACWX Sortino Ratio Rank: 52
ACWX Omega Ratio Rank: 55
ACWX Calmar Ratio Rank: 55
ACWX Martin Ratio Rank: 59

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 vs. ACWX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE All-World ex-US ETF (VEU) and iShares MSCI ACWI ex U.S. ETF (ACWX). 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	ACWX	Difference
Sharpe ratio: Return per unit of total volatility	1.84	1.79	+0.05
Sortino ratio: Return per unit of downside risk	2.52	2.44	+0.08
Omega ratio: Gain probability vs. loss probability	1.34	1.33	+0.01
Calmar ratio: Return relative to maximum drawdown	2.64	2.62	+0.02
Martin ratio: Return relative to average drawdown	10.12	10.05	+0.08

VEU vs. ACWX - Sharpe Ratio Comparison

The current VEU Sharpe Ratio is 1.84, which is comparable to the ACWX Sharpe Ratio of 1.79. The chart below compares the historical Sharpe Ratios of VEU and ACWX, 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 vs. ACWX - Drawdown Comparison

The maximum VEU drawdown since its inception was -61.52%, roughly equal to the maximum ACWX drawdown of -60.40%. Use the drawdown chart below to compare losses from any high point for VEU and ACWX.

Drawdown Indicators

	VEU	ACWX	Difference
Max Drawdown Largest peak-to-trough decline	-61.52%	-60.40%	-1.12%
Max Drawdown (1Y) Largest decline over 1 year	-11.43%	-11.42%	-0.01%
Max Drawdown (3Y) Largest decline over 3 years	-13.69%	-13.84%	+0.15%
Max Drawdown (5Y) Largest decline over 5 years	-29.14%	-29.78%	+0.64%
Max Drawdown (10Y) Largest decline over 10 years	-34.98%	-35.38%	+0.40%
Current Drawdown Current decline from peak	-3.06%	-3.17%	+0.11%
Average Drawdown Average peak-to-trough decline	-13.10%	-13.30%	+0.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.98%	2.98%	0.00%

Volatility

VEU vs. ACWX - Volatility Comparison

Vanguard FTSE All-World ex-US ETF (VEU) and iShares MSCI ACWI ex U.S. ETF (ACWX) have volatilities of 7.10% and 7.37%, 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

	VEU	ACWX	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.10%	7.37%	-0.27%
Volatility (6M) Calculated over the trailing 6-month period	14.47%	14.77%	-0.30%
Volatility (1Y) Calculated over the trailing 1-year period	16.44%	16.74%	-0.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.30%	16.53%	-0.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.08%	17.27%	-0.19%

VEU vs. ACWX - Expense Ratio Comparison

VEU has a 0.04% expense ratio, which is lower than ACWX's 0.32% expense ratio.

Dividends

VEU vs. ACWX - Dividend Comparison

VEU's dividend yield for the trailing twelve months is around 2.56%, which matches ACWX's 2.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ACWX iShares MSCI ACWI ex U.S. ETF	2.54%	2.82%	2.97%	2.96%	2.68%	2.74%	1.88%	3.22%	2.60%	2.40%	2.77%	2.51%
VEU Vanguard FTSE All-World ex-US ETF	2.56%	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 VEU and ACWX in my portfolio?

With a correlation of 1.00, VEU and ACWX 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, VEU or ACWX?

ACWX has higher volatility (7.37%) compared to VEU (7.10%). In terms of maximum drawdown, VEU dropped -61.52% vs ACWX's -60.40%.

Which ETF is better, VEU or ACWX?

On 10-year performance, VEU leads with 10.40% vs 10.06% for ACWX. On fees, VEU is cheaper at 0.04% per year. On volatility, VEU has been the lower-risk option at 7.10%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VEU or ACWX?

Over the 10-year period, VEU has performed better with a 10.40% return vs 10.06%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VEU or ACWX?

VEU is cheaper with a 0.04% expense ratio, compared with 0.32% for ACWX.

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

VEU has the higher dividend yield at 2.56%, compared with 2.54% for ACWX.

What is the main difference between VEU and ACWX?

VEU tracks FTSE All-World ex US Index, while ACWX tracks MSCI All Country World ex-U.S. Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.04% for VEU and 0.32% for ACWX.

Which has better risk-adjusted returns?

VEU currently has the higher Sharpe Ratio (1.84 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.