VEU vs. EMXC

Last updated Jun 20, 2026

VEU (Vanguard FTSE All-World ex-US ETF) and EMXC (iShares MSCI Emerging Markets ex China ETF) are both exchange-traded funds - VEU is a Foreign Large Cap Equities fund tracking the FTSE All-World ex US Index, while EMXC is a Emerging Markets Equities fund tracking the MSCI Emerging Markets ex China Index. Both are passively managed. Over the past 5 years, VEU returned 9.57%/yr vs 14.15%/yr for EMXC. Their correlation of 0.84 suggests significant overlap in exposure. VEU charges 0.04%/yr vs 0.49%/yr for EMXC.

Performance

VEU vs. EMXC - 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 Emerging Markets ex China ETF (EMXC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VEU achieves a 16.16% return, which is significantly lower than EMXC's 46.36% return.

VEU

• 1D: 1.19%
• 1M: 3.87%
• YTD: 16.16%
• 6M: 17.26%
• 1Y: 33.68%
• 3Y*: 18.96%
• 5Y*: 9.57%
• 10Y*: 10.20%

EMXC

• 1D: 3.92%
• 1M: 12.84%
• YTD: 46.36%
• 6M: 50.72%
• 1Y: 78.67%
• 3Y*: 29.02%
• 5Y*: 14.15%
• 10Y*: —

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

VEU vs. EMXC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEU Vanguard FTSE All-World ex-US ETF	16.16%	32.35%	5.56%	15.84%	-15.58%	8.27%	11.10%	21.83%	-14.18%	7.81%
EMXC iShares MSCI Emerging Markets ex China ETF	46.36%	35.14%	2.68%	18.96%	-19.56%	8.54%	12.76%	15.80%	-12.96%	7.16%

Correlation

The correlation between VEU and EMXC is 0.87, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.87
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (All Time) Calculated using the full available price history since Jul 26, 2017	0.84

The correlation between VEU and EMXC has been stable across timeframes, ranging from 0.84 to 0.88 - a consistent structural relationship.

VEU vs. EMXC - Sectors Allocation Comparison

Sectors	VEU	EMXC
Financial Services	23.3%	17.4%
Technology	18.5%	52.4%
Industrials	15.7%	6.9%
Consumer Cyclical	8.2%	4.1%
Basic Materials	7.1%	6.0%
Healthcare	7.1%	1.8%
Energy	5.2%	3.4%
Consumer Defensive	5.1%	2.4%
Communication Services	4.6%	3.0%
Utilities	3.2%	1.9%
Real Estate	2.0%	0.8%

Return for Risk

VEU vs. EMXC — 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: 68
VEU Sortino Ratio Rank: 66
VEU Omega Ratio Rank: 69
VEU Calmar Ratio Rank: 62
VEU Martin Ratio Rank: 65

EMXC

EMXC Risk / Return Rank: 92
EMXC Sharpe Ratio Rank: 94
EMXC Sortino Ratio Rank: 89
EMXC Omega Ratio Rank: 92
EMXC Calmar Ratio Rank: 91
EMXC Martin Ratio Rank: 92

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. EMXC - 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 Emerging Markets ex China ETF (EMXC). 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	EMXC	Difference
Sharpe ratio: Return per unit of total volatility	2.10	3.24	-1.15
Sortino ratio: Return per unit of downside risk	2.87	3.86	-1.00
Omega ratio: Gain probability vs. loss probability	1.39	1.59	-0.20
Calmar ratio: Return relative to maximum drawdown	2.96	5.49	-2.53
Martin ratio: Return relative to average drawdown	11.36	21.12	-9.76

VEU vs. EMXC - Sharpe Ratio Comparison

The current VEU Sharpe Ratio is 2.10, which is lower than the EMXC Sharpe Ratio of 3.24. The chart below compares the historical Sharpe Ratios of VEU and EMXC, 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. EMXC - Drawdown Comparison

The maximum VEU drawdown since its inception was -61.52%, which is greater than EMXC's maximum drawdown of -42.81%. Use the drawdown chart below to compare losses from any high point for VEU and EMXC.

Drawdown Indicators

	VEU	EMXC	Difference
Max Drawdown Largest peak-to-trough decline	-61.52%	-42.81%	-18.71%
Max Drawdown (1Y) Largest decline over 1 year	-11.43%	-14.41%	+2.98%
Max Drawdown (3Y) Largest decline over 3 years	-13.69%	-19.12%	+5.43%
Max Drawdown (5Y) Largest decline over 5 years	-29.14%	-28.91%	-0.23%
Max Drawdown (10Y) Largest decline over 10 years	-34.98%	—	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-13.11%	-10.16%	-2.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.97%	3.74%	-0.77%

Volatility

VEU vs. EMXC - Volatility Comparison

The current volatility for Vanguard FTSE All-World ex-US ETF (VEU) is 6.47%, while iShares MSCI Emerging Markets ex China ETF (EMXC) has a volatility of 12.99%. This indicates that VEU experiences smaller price fluctuations and is considered to be less risky than EMXC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEU	EMXC	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.47%	12.99%	-6.52%
Volatility (6M) Calculated over the trailing 6-month period	14.14%	22.41%	-8.27%
Volatility (1Y) Calculated over the trailing 1-year period	16.15%	24.37%	-8.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.24%	18.16%	-1.92%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.25%	20.14%	-2.89%

VEU vs. EMXC - Expense Ratio Comparison

VEU has a 0.04% expense ratio, which is lower than EMXC's 0.49% expense ratio.

Dividends

VEU vs. EMXC - Dividend Comparison

VEU's dividend yield for the trailing twelve months is around 3.05%, more than EMXC's 1.82% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EMXC iShares MSCI Emerging Markets ex China ETF	1.82%	2.82%	2.69%	1.83%	2.85%	1.78%	1.45%	3.25%	2.63%	0.99%	0.00%	0.00%
VEU Vanguard FTSE All-World ex-US ETF	3.05%	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 EMXC in my portfolio?

VEU and EMXC have a correlation of 0.87, 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 EMXC?

EMXC has higher volatility (12.99%) compared to VEU (6.47%). In terms of maximum drawdown, VEU dropped -61.52% vs EMXC's -42.81%.

Which ETF is better, VEU or EMXC?

On 5-year performance, EMXC leads with 14.15% vs 9.57% for VEU. On fees, VEU is cheaper at 0.04% per year. On volatility, VEU has been the lower-risk option at 6.47%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VEU or EMXC?

Over the 5-year period, EMXC has performed better with a 14.15% return vs 9.57%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VEU or EMXC?

VEU is cheaper with a 0.04% expense ratio, compared with 0.49% for EMXC.

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

VEU has the higher dividend yield at 3.05%, compared with 1.82% for EMXC.

What is the main difference between VEU and EMXC?

VEU is categorized as Foreign Large Cap Equities, while EMXC is Emerging Markets Equities. VEU tracks FTSE All-World ex US Index, while EMXC tracks MSCI Emerging Markets ex China Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.04% for VEU and 0.49% for EMXC.

Which has better risk-adjusted returns?

EMXC currently has the higher Sharpe Ratio (3.24 vs 2.10), 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.