VEU vs. ICOW

Last updated Jun 4, 2026

VEU (Vanguard FTSE All-World ex-US ETF) and ICOW (Pacer Developed Markets International Cash Cows 100 ETF) are both Foreign Large Cap Equities funds - VEU tracks the FTSE All-World ex US Index while ICOW tracks the Pacer Developed Markets International Cash Cows 100 Index. Both are passively managed. Over the past 5 years, VEU returned 8.67%/yr vs 10.06%/yr for ICOW. Their correlation of 0.86 suggests significant overlap in exposure. VEU charges 0.04%/yr vs 0.65%/yr for ICOW.

Performance

VEU vs. ICOW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE All-World ex-US ETF (VEU) and Pacer Developed Markets International Cash Cows 100 ETF (ICOW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VEU achieves a 14.60% return, which is significantly lower than ICOW's 17.35% return.

VEU

• 1D: -0.98%
• 1M: 5.07%
• YTD: 14.60%
• 6M: 17.34%
• 1Y: 32.37%
• 3Y*: 19.62%
• 5Y*: 8.67%
• 10Y*: 9.94%

ICOW

• 1D: -0.64%
• 1M: 3.47%
• YTD: 17.35%
• 6M: 18.06%
• 1Y: 39.15%
• 3Y*: 20.17%
• 5Y*: 10.06%
• 10Y*: —

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

VEU vs. ICOW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEU Vanguard FTSE All-World ex-US ETF	14.60%	32.35%	5.56%	15.84%	-15.58%	8.27%	11.10%	21.83%	-14.18%	10.53%
ICOW Pacer Developed Markets International Cash Cows 100 ETF	17.35%	36.95%	-2.59%	18.94%	-7.98%	11.52%	7.20%	17.91%	-16.09%	16.98%

Correlation

The correlation between VEU and ICOW is 0.83, 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	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.85
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (All Time) Calculated using the full available price history since Jun 20, 2017	0.86

The correlation between VEU and ICOW has been stable across timeframes, ranging from 0.83 to 0.88 - a consistent structural relationship.

VEU vs. ICOW - Sectors Allocation Comparison

Sectors	VEU	ICOW
Financial Services	23.3%	-
Technology	18.5%	6.2%
Industrials	15.7%	28.7%
Consumer Cyclical	8.2%	11.6%
Basic Materials	7.1%	5.4%
Healthcare	7.1%	7.1%
Energy	5.2%	23.7%
Consumer Defensive	5.1%	8.5%
Communication Services	4.6%	8.9%
Utilities	3.2%	-
Real Estate	2.0%	-

Return for Risk

VEU vs. ICOW — Risk / Return Rank

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

VEU

VEU Risk / Return Rank: 60
VEU Sharpe Ratio Rank: 62
VEU Sortino Ratio Rank: 61
VEU Omega Ratio Rank: 62
VEU Calmar Ratio Rank: 56
VEU Martin Ratio Rank: 61

ICOW

ICOW Risk / Return Rank: 84
ICOW Sharpe Ratio Rank: 86
ICOW Sortino Ratio Rank: 82
ICOW Omega Ratio Rank: 82
ICOW Calmar Ratio Rank: 86
ICOW Martin Ratio Rank: 84

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. ICOW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE All-World ex-US ETF (VEU) and Pacer Developed Markets International Cash Cows 100 ETF (ICOW). 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.

	VEU	ICOW	Difference
Sharpe ratio: Return per unit of total volatility	2.13	2.87	-0.74
Sortino ratio: Return per unit of downside risk	2.94	3.72	-0.78
Omega ratio: Gain probability vs. loss probability	1.39	1.50	-0.12
Calmar ratio: Return relative to maximum drawdown	2.85	4.91	-2.06
Martin ratio: Return relative to average drawdown	11.06	17.54	-6.48
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VEU vs. ICOW - Sharpe Ratio Comparison

The current VEU Sharpe Ratio is 2.13, which is comparable to the ICOW Sharpe Ratio of 2.87. The chart below compares the historical Sharpe Ratios of VEU and ICOW, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VEU	ICOW	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.13	2.87	-0.74
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.54	0.61	-0.06
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.58	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.25	0.55	-0.30

Drawdowns

VEU vs. ICOW - Drawdown Comparison

The maximum VEU drawdown since its inception was -61.52%, which is greater than ICOW's maximum drawdown of -43.49%. Use the drawdown chart below to compare losses from any high point for VEU and ICOW.

Drawdown Indicators

	VEU	ICOW	Difference
Max Drawdown Largest peak-to-trough decline	-61.52%	-43.49%	-18.03%
Max Drawdown (1Y) Largest decline over 1 year	-11.43%	-8.02%	-3.41%
Max Drawdown (3Y) Largest decline over 3 years	-13.69%	-14.81%	+1.12%
Max Drawdown (5Y) Largest decline over 5 years	-29.31%	-28.48%	-0.83%
Max Drawdown (10Y) Largest decline over 10 years	-34.98%	—	—
Current Drawdown Current decline from peak	-0.98%	-0.64%	-0.34%
Average Drawdown Average peak-to-trough decline	-13.13%	-7.59%	-5.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.93%	2.24%	+0.69%

Volatility

VEU vs. ICOW - Volatility Comparison

Vanguard FTSE All-World ex-US ETF (VEU) has a higher volatility of 5.59% compared to Pacer Developed Markets International Cash Cows 100 ETF (ICOW) at 4.41%. This indicates that VEU's price experiences larger fluctuations and is considered to be riskier than ICOW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEU	ICOW	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.59%	4.41%	+1.18%
Volatility (6M) Calculated over the trailing 6-month period	13.04%	10.59%	+2.45%
Volatility (1Y) Calculated over the trailing 1-year period	15.29%	13.73%	+1.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.07%	16.64%	-0.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.21%	18.47%	-1.26%

VEU vs. ICOW - Expense Ratio Comparison

VEU has a 0.04% expense ratio, which is lower than ICOW's 0.65% expense ratio.

Dividends

VEU vs. ICOW - Dividend Comparison

VEU's dividend yield for the trailing twelve months is around 2.61%, more than ICOW's 2.12% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ICOW Pacer Developed Markets International Cash Cows 100 ETF	2.12%	3.03%	4.39%	3.61%	5.26%	2.11%	2.46%	3.10%	2.61%	0.80%	0.00%	0.00%
VEU Vanguard FTSE All-World ex-US ETF	2.61%	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 ICOW in my portfolio?

VEU and ICOW have a correlation of 0.83, 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 ICOW?

VEU has higher volatility (5.59%) compared to ICOW (4.41%). In terms of maximum drawdown, VEU dropped -61.52% vs ICOW's -43.49%.

Which ETF is better, VEU or ICOW?

On 5-year performance, ICOW leads with 10.06% vs 8.67% for VEU. On fees, VEU is cheaper at 0.04% per year. On volatility, ICOW has been the lower-risk option at 4.41%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VEU or ICOW?

Over the 5-year period, ICOW has performed better with a 10.06% return vs 8.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VEU or ICOW?

VEU is cheaper with a 0.04% expense ratio, compared with 0.65% for ICOW.

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

VEU has the higher dividend yield at 2.61%, compared with 2.12% for ICOW.

What is the main difference between VEU and ICOW?

VEU tracks FTSE All-World ex US Index, while ICOW tracks Pacer Developed Markets International Cash Cows 100 Index. They also come from different issuers: Vanguard and Pacer. Their fees differ too: 0.04% for VEU and 0.65% for ICOW.

Which has better risk-adjusted returns?

ICOW currently has the higher Sharpe Ratio (2.87 vs 2.13), 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.