VEU vs. SPY

Last updated Jun 23, 2026

VEU (Vanguard FTSE All-World ex-US ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - VEU is a Foreign Large Cap Equities fund tracking the FTSE All-World ex US Index, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, VEU returned 10.74%/yr vs 15.70%/yr for SPY. Their correlation of 0.83 suggests significant overlap in exposure. VEU charges 0.04%/yr vs 0.09%/yr for SPY.

Performance

VEU vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE All-World ex-US ETF (VEU) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VEU achieves a 16.58% return, which is significantly higher than SPY's 9.74% return. Over the past 10 years, VEU has underperformed SPY with an annualized return of 10.74%, while SPY has yielded a comparatively higher 15.70% annualized return.

VEU

• 1D: 0.37%
• 1M: 3.87%
• YTD: 16.58%
• 6M: 17.12%
• 1Y: 35.21%
• 3Y*: 20.50%
• 5Y*: 9.48%
• 10Y*: 10.74%

SPY

• 1D: -0.31%
• 1M: 0.09%
• YTD: 9.74%
• 6M: 9.27%
• 1Y: 26.65%
• 3Y*: 21.27%
• 5Y*: 13.51%
• 10Y*: 15.70%

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

VEU vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEU Vanguard FTSE All-World ex-US ETF	16.58%	32.35%	5.56%	15.84%	-15.58%	8.27%	11.10%	21.83%	-14.18%	27.40%
SPY State Street SPDR S&P 500 ETF	9.74%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between VEU and SPY is 0.81, 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	0.81
Correlation (3Y) Calculated over the trailing 3-year period	0.75
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (10Y) Calculated over the trailing 10-year period	0.79
Correlation (All Time) Calculated using the full available price history since Mar 8, 2007	0.83

The correlation between VEU and SPY has been stable across timeframes, ranging from 0.75 to 0.83 - a consistent structural relationship.

VEU vs. SPY - Sectors Allocation Comparison

Sectors	VEU	SPY
Financial Services	22.6%	11.1%
Technology	21.6%	39.0%
Industrials	15.0%	7.8%
Consumer Cyclical	8.0%	9.9%
Basic Materials	7.1%	1.7%
Healthcare	6.7%	8.3%
Consumer Defensive	4.9%	4.5%
Energy	4.7%	3.1%
Communication Services	4.5%	10.6%
Utilities	3.0%	2.1%
Real Estate	1.9%	1.8%

Return for Risk

VEU vs. SPY — Risk / Return Rank

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

VEU

VEU Risk / Return Rank: 68
VEU Sharpe Ratio Rank: 70
VEU Sortino Ratio Rank: 68
VEU Omega Ratio Rank: 71
VEU Calmar Ratio Rank: 64
VEU Martin Ratio Rank: 67

SPY

SPY Risk / Return Rank: 68
SPY Sharpe Ratio Rank: 69
SPY Sortino Ratio Rank: 66
SPY Omega Ratio Rank: 68
SPY Calmar Ratio Rank: 63
SPY Martin Ratio Rank: 74

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. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE All-World ex-US ETF (VEU) and State Street SPDR S&P 500 ETF (SPY). 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	SPY	Difference
Sharpe ratio: Return per unit of total volatility	2.19	2.16	+0.04
Sortino ratio: Return per unit of downside risk	2.98	2.91	+0.07
Omega ratio: Gain probability vs. loss probability	1.40	1.39	+0.01
Calmar ratio: Return relative to maximum drawdown	3.10	3.01	+0.08
Martin ratio: Return relative to average drawdown	11.87	13.54	-1.66

VEU vs. SPY - Sharpe Ratio Comparison

The current VEU Sharpe Ratio is 2.19, which is comparable to the SPY Sharpe Ratio of 2.16. The chart below compares the historical Sharpe Ratios of VEU and SPY, 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. SPY - Drawdown Comparison

The maximum VEU drawdown since its inception was -61.52%, which is greater than SPY's maximum drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for VEU and SPY.

Drawdown Indicators

	VEU	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-61.52%	-55.19%	-6.33%
Max Drawdown (1Y) Largest decline over 1 year	-11.43%	-8.88%	-2.55%
Max Drawdown (3Y) Largest decline over 3 years	-13.69%	-18.76%	+5.07%
Max Drawdown (5Y) Largest decline over 5 years	-29.14%	-24.50%	-4.64%
Max Drawdown (10Y) Largest decline over 10 years	-34.98%	-33.72%	-1.26%
Current Drawdown Current decline from peak	0.00%	-1.75%	+1.75%
Average Drawdown Average peak-to-trough decline	-13.10%	-9.04%	-4.06%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.97%	1.97%	+1.00%

Volatility

VEU vs. SPY - Volatility Comparison

Vanguard FTSE All-World ex-US ETF (VEU) has a higher volatility of 6.30% compared to State Street SPDR S&P 500 ETF (SPY) at 4.64%. This indicates that VEU's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEU	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.30%	4.64%	+1.66%
Volatility (6M) Calculated over the trailing 6-month period	14.12%	9.75%	+4.37%
Volatility (1Y) Calculated over the trailing 1-year period	16.16%	12.43%	+3.73%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.24%	17.14%	-0.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.23%	17.99%	-0.76%

VEU vs. SPY - Expense Ratio Comparison

VEU has a 0.04% expense ratio, which is lower than SPY's 0.09% 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. SPY - Dividend Comparison

VEU's dividend yield for the trailing twelve months is around 2.48%, more than SPY's 1.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPY State Street SPDR S&P 500 ETF	1.01%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%
VEU Vanguard FTSE All-World ex-US ETF	2.48%	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 SPY in my portfolio?

VEU and SPY have a correlation of 0.81, 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 SPY?

VEU has higher volatility (6.30%) compared to SPY (4.64%). In terms of maximum drawdown, VEU dropped -61.52% vs SPY's -55.19%.

Which ETF is better, VEU or SPY?

On 10-year performance, SPY leads with 15.70% vs 10.74% for VEU. On fees, VEU is cheaper at 0.04% per year. On volatility, SPY has been the lower-risk option at 4.64%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VEU or SPY?

Over the 10-year period, SPY has performed better with a 15.70% return vs 10.74%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VEU or SPY?

VEU is cheaper with a 0.04% expense ratio, compared with 0.09% for SPY.

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

VEU has the higher dividend yield at 2.48%, compared with 1.01% for SPY.

What is the main difference between VEU and SPY?

VEU is categorized as Foreign Large Cap Equities, while SPY is S&P 500. VEU tracks FTSE All-World ex US Index, while SPY tracks S&P 500 Index. They also come from different issuers: Vanguard and State Street. Their fees differ too: 0.04% for VEU and 0.09% for SPY.

Which has better risk-adjusted returns?

VEU currently has the higher Sharpe Ratio (2.19 vs 2.16), 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.