VEU vs. IVLU

Last updated Jun 13, 2026

VEU (Vanguard FTSE All-World ex-US ETF) and IVLU (iShares MSCI International Value Factor ETF) are both Foreign Large Cap Equities funds - VEU tracks the FTSE All-World ex US Index while IVLU tracks the MSCI World ex USA Enhanced Value Index. Both are passively managed. Over the past 10 years, VEU returned 10.41%/yr vs 11.63%/yr for IVLU. Their correlation of 0.87 suggests significant overlap in exposure. VEU charges 0.04%/yr vs 0.30%/yr for IVLU.

Performance

VEU vs. IVLU - 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 International Value Factor ETF (IVLU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VEU achieves a 14.08% return, which is significantly higher than IVLU's 12.96% return. Over the past 10 years, VEU has underperformed IVLU with an annualized return of 10.41%, while IVLU has yielded a comparatively higher 11.63% annualized return.

VEU

• 1D: 0.40%
• 1M: 1.00%
• YTD: 14.08%
• 6M: 15.91%
• 1Y: 28.82%
• 3Y*: 18.67%
• 5Y*: 8.56%
• 10Y*: 10.41%

IVLU

• 1D: 0.56%
• 1M: 0.70%
• YTD: 12.96%
• 6M: 14.33%
• 1Y: 33.78%
• 3Y*: 23.53%
• 5Y*: 14.06%
• 10Y*: 11.63%

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

VEU vs. IVLU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEU Vanguard FTSE All-World ex-US ETF	14.08%	32.35%	5.56%	15.84%	-15.58%	8.27%	11.10%	21.83%	-14.18%	27.40%
IVLU iShares MSCI International Value Factor ETF	12.96%	46.09%	6.76%	20.07%	-5.73%	15.60%	-4.50%	15.60%	-15.10%	23.10%

Correlation

The correlation between VEU and IVLU is 0.90, 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	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.90
Correlation (All Time) Calculated using the full available price history since Jul 15, 2015	0.87

The correlation between VEU and IVLU has been stable across timeframes, ranging from 0.87 to 0.91 - a consistent structural relationship.

VEU vs. IVLU - Sectors Allocation Comparison

Sectors	VEU	IVLU
Financial Services	23.3%	25.3%
Technology	18.5%	11.3%
Industrials	15.7%	17.2%
Consumer Cyclical	8.2%	7.4%
Basic Materials	7.1%	7.5%
Healthcare	7.1%	9.7%
Energy	5.2%	5.1%
Consumer Defensive	5.1%	6.3%
Communication Services	4.6%	4.0%
Utilities	3.2%	3.3%
Real Estate	2.0%	1.5%

Return for Risk

VEU vs. IVLU — Risk / Return Rank

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

VEU

VEU Risk / Return Rank: 61
VEU Sharpe Ratio Rank: 62
VEU Sortino Ratio Rank: 61
VEU Omega Ratio Rank: 63
VEU Calmar Ratio Rank: 58
VEU Martin Ratio Rank: 62

IVLU

IVLU Risk / Return Rank: 73
IVLU Sharpe Ratio Rank: 78
IVLU Sortino Ratio Rank: 77
IVLU Omega Ratio Rank: 76
IVLU Calmar Ratio Rank: 67
IVLU Martin Ratio Rank: 69

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. IVLU - 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 International Value Factor ETF (IVLU). 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	IVLU	Difference
Sharpe ratio: Return per unit of total volatility	1.79	2.17	-0.38
Sortino ratio: Return per unit of downside risk	2.48	2.98	-0.50
Omega ratio: Gain probability vs. loss probability	1.33	1.39	-0.06
Calmar ratio: Return relative to maximum drawdown	2.53	2.90	-0.37
Martin ratio: Return relative to average drawdown	9.70	11.01	-1.30

VEU vs. IVLU - Sharpe Ratio Comparison

The current VEU Sharpe Ratio is 1.79, which is comparable to the IVLU Sharpe Ratio of 2.17. The chart below compares the historical Sharpe Ratios of VEU and IVLU, 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. IVLU - Drawdown Comparison

The maximum VEU drawdown since its inception was -61.52%, which is greater than IVLU's maximum drawdown of -41.85%. Use the drawdown chart below to compare losses from any high point for VEU and IVLU.

Drawdown Indicators

	VEU	IVLU	Difference
Max Drawdown Largest peak-to-trough decline	-61.52%	-41.85%	-19.67%
Max Drawdown (1Y) Largest decline over 1 year	-11.43%	-11.69%	+0.26%
Max Drawdown (3Y) Largest decline over 3 years	-13.69%	-15.48%	+1.79%
Max Drawdown (5Y) Largest decline over 5 years	-29.31%	-26.04%	-3.27%
Max Drawdown (10Y) Largest decline over 10 years	-34.98%	-41.85%	+6.87%
Current Drawdown Current decline from peak	-1.42%	-0.53%	-0.89%
Average Drawdown Average peak-to-trough decline	-13.12%	-8.57%	-4.55%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.99%	3.09%	-0.10%

Volatility

VEU vs. IVLU - Volatility Comparison

Vanguard FTSE All-World ex-US ETF (VEU) has a higher volatility of 6.77% compared to iShares MSCI International Value Factor ETF (IVLU) at 5.44%. This indicates that VEU's price experiences larger fluctuations and is considered to be riskier than IVLU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEU	IVLU	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.77%	5.44%	+1.33%
Volatility (6M) Calculated over the trailing 6-month period	14.06%	12.85%	+1.21%
Volatility (1Y) Calculated over the trailing 1-year period	16.18%	15.65%	+0.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.23%	16.58%	-0.35%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.25%	17.66%	-0.41%

VEU vs. IVLU - Expense Ratio Comparison

VEU has a 0.04% expense ratio, which is lower than IVLU's 0.30% expense ratio.

Dividends

VEU vs. IVLU - Dividend Comparison

VEU's dividend yield for the trailing twelve months is around 2.62%, less than IVLU's 3.28% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IVLU iShares MSCI International Value Factor ETF	3.28%	3.71%	4.46%	4.69%	3.59%	3.47%	2.05%	3.53%	2.82%	2.87%	2.53%	0.93%
VEU Vanguard FTSE All-World ex-US ETF	2.62%	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 IVLU in my portfolio?

With a correlation of 0.90, VEU and IVLU 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 IVLU?

VEU has higher volatility (6.77%) compared to IVLU (5.44%). In terms of maximum drawdown, VEU dropped -61.52% vs IVLU's -41.85%.

Which ETF is better, VEU or IVLU?

On 10-year performance, IVLU leads with 11.63% vs 10.41% for VEU. On fees, VEU is cheaper at 0.04% per year. On volatility, IVLU has been the lower-risk option at 5.44%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VEU or IVLU?

Over the 10-year period, IVLU has performed better with a 11.63% return vs 10.41%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VEU or IVLU?

VEU is cheaper with a 0.04% expense ratio, compared with 0.30% for IVLU.

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

IVLU has the higher dividend yield at 3.28%, compared with 2.62% for VEU.

What is the main difference between VEU and IVLU?

VEU tracks FTSE All-World ex US Index, while IVLU tracks MSCI World ex USA Enhanced Value Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.04% for VEU and 0.30% for IVLU.

Which has better risk-adjusted returns?

IVLU currently has the higher Sharpe Ratio (2.17 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.