VEU vs. BNDX

Last updated Jun 12, 2026

VEU (Vanguard FTSE All-World ex-US ETF) and BNDX (Vanguard Total International Bond ETF) are both exchange-traded funds - VEU is a Foreign Large Cap Equities fund tracking the FTSE All-World ex US Index, while BNDX is a Global Bonds fund tracking the Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index (USD Hedged). Both are passively managed. Over the past 10 years, VEU returned 10.23%/yr vs 1.69%/yr for BNDX. At a 0.04 correlation, their price movements are largely independent. VEU charges 0.04%/yr vs 0.07%/yr for BNDX.

Performance

VEU vs. BNDX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE All-World ex-US ETF (VEU) and Vanguard Total International Bond ETF (BNDX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VEU achieves a 13.63% return, which is significantly higher than BNDX's 0.85% return. Over the past 10 years, VEU has outperformed BNDX with an annualized return of 10.23%, while BNDX has yielded a comparatively lower 1.69% annualized return.

VEU

• 1D: 3.33%
• 1M: 1.64%
• YTD: 13.63%
• 6M: 14.67%
• 1Y: 29.07%
• 3Y*: 18.92%
• 5Y*: 8.48%
• 10Y*: 10.23%

BNDX

• 1D: 0.58%
• 1M: 1.01%
• YTD: 0.85%
• 6M: 0.99%
• 1Y: 1.99%
• 3Y*: 4.13%
• 5Y*: 0.29%
• 10Y*: 1.69%

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

VEU vs. BNDX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEU Vanguard FTSE All-World ex-US ETF	13.63%	32.35%	5.56%	15.84%	-15.58%	8.27%	11.10%	21.83%	-14.18%	27.40%
BNDX Vanguard Total International Bond ETF	0.85%	2.86%	3.57%	8.77%	-12.76%	-2.29%	4.65%	7.87%	2.81%	2.40%

Correlation

The correlation between VEU and BNDX is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.47
Correlation (3Y) Calculated over the trailing 3-year period	0.30
Correlation (5Y) Calculated over the trailing 5-year period	0.21
Correlation (10Y) Calculated over the trailing 10-year period	0.09
Correlation (All Time) Calculated using the full available price history since Jun 4, 2013	0.04

Over the past year, VEU and BNDX have become more correlated (0.47) than their long-term average of 0.04, meaning their price movements have been converging.

VEU vs. BNDX - Sectors Allocation Comparison

Sectors	VEU	BNDX
Financial Services	23.3%	0.0%
Technology	18.5%	-
Industrials	15.7%	0.0%
Consumer Cyclical	8.2%	-
Basic Materials	7.1%	-
Healthcare	7.1%	0.0%
Energy	5.2%	0.0%
Consumer Defensive	5.1%	-
Communication Services	4.6%	0.0%
Utilities	3.2%	0.0%
Real Estate	2.0%	0.0%

Return for Risk

VEU vs. BNDX — Risk / Return Rank

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

VEU

VEU Risk / Return Rank: 66
VEU Sharpe Ratio Rank: 67
VEU Sortino Ratio Rank: 66
VEU Omega Ratio Rank: 68
VEU Calmar Ratio Rank: 62
VEU Martin Ratio Rank: 65

BNDX

BNDX Risk / Return Rank: 20
BNDX Sharpe Ratio Rank: 21
BNDX Sortino Ratio Rank: 19
BNDX Omega Ratio Rank: 19
BNDX Calmar Ratio Rank: 20
BNDX Martin Ratio Rank: 20

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. BNDX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE All-World ex-US ETF (VEU) and Vanguard Total International Bond ETF (BNDX). 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	BNDX	Difference
Sharpe ratio: Return per unit of total volatility	1.81	0.58	+1.23
Sortino ratio: Return per unit of downside risk	2.50	0.84	+1.66
Omega ratio: Gain probability vs. loss probability	1.33	1.10	+0.23
Calmar ratio: Return relative to maximum drawdown	2.56	0.68	+1.87
Martin ratio: Return relative to average drawdown	9.76	1.90	+7.86

VEU vs. BNDX - Sharpe Ratio Comparison

The current VEU Sharpe Ratio is 1.81, which is higher than the BNDX Sharpe Ratio of 0.58. The chart below compares the historical Sharpe Ratios of VEU and BNDX, 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. BNDX - Drawdown Comparison

The maximum VEU drawdown since its inception was -61.52%, which is greater than BNDX's maximum drawdown of -16.23%. Use the drawdown chart below to compare losses from any high point for VEU and BNDX.

Drawdown Indicators

	VEU	BNDX	Difference
Max Drawdown Largest peak-to-trough decline	-61.52%	-16.23%	-45.29%
Max Drawdown (1Y) Largest decline over 1 year	-11.43%	-2.93%	-8.50%
Max Drawdown (3Y) Largest decline over 3 years	-13.69%	-2.93%	-10.76%
Max Drawdown (5Y) Largest decline over 5 years	-29.31%	-15.86%	-13.45%
Max Drawdown (10Y) Largest decline over 10 years	-34.98%	-16.23%	-18.75%
Current Drawdown Current decline from peak	-1.81%	-1.18%	-0.63%
Average Drawdown Average peak-to-trough decline	-13.12%	-3.10%	-10.02%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.99%	1.05%	+1.94%

Volatility

VEU vs. BNDX - Volatility Comparison

Vanguard FTSE All-World ex-US ETF (VEU) has a higher volatility of 6.83% compared to Vanguard Total International Bond ETF (BNDX) at 1.50%. This indicates that VEU's price experiences larger fluctuations and is considered to be riskier than BNDX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEU	BNDX	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.83%	1.50%	+5.33%
Volatility (6M) Calculated over the trailing 6-month period	14.09%	2.96%	+11.13%
Volatility (1Y) Calculated over the trailing 1-year period	16.17%	3.47%	+12.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.24%	4.89%	+11.35%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.26%	4.10%	+13.16%

VEU vs. BNDX - Expense Ratio Comparison

VEU has a 0.04% expense ratio, which is lower than BNDX'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

VEU vs. BNDX - Dividend Comparison

VEU's dividend yield for the trailing twelve months is around 2.63%, less than BNDX's 4.48% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BNDX Vanguard Total International Bond ETF	4.48%	4.39%	4.18%	4.42%	1.51%	3.74%	1.11%	3.40%	3.01%	2.23%	1.89%	1.63%
VEU Vanguard FTSE All-World ex-US ETF	2.63%	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 BNDX in my portfolio?

VEU and BNDX have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VEU or BNDX?

VEU has higher volatility (6.83%) compared to BNDX (1.50%). In terms of maximum drawdown, VEU dropped -61.52% vs BNDX's -16.23%.

Which ETF is better, VEU or BNDX?

On 10-year performance, VEU leads with 10.23% vs 1.69% for BNDX. On fees, VEU is cheaper at 0.04% per year. On volatility, BNDX has been the lower-risk option at 1.50%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VEU or BNDX?

Over the 10-year period, VEU has performed better with a 10.23% return vs 1.69%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VEU or BNDX?

VEU is cheaper with a 0.04% expense ratio, compared with 0.07% for BNDX.

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

BNDX has the higher dividend yield at 4.48%, compared with 2.63% for VEU.

What is the main difference between VEU and BNDX?

VEU is categorized as Foreign Large Cap Equities, while BNDX is Global Bonds. VEU tracks FTSE All-World ex US Index, while BNDX tracks Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index (USD Hedged). Their fees differ too: 0.04% for VEU and 0.07% for BNDX.

Which has better risk-adjusted returns?

VEU currently has the higher Sharpe Ratio (1.81 vs 0.58), 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.