VEU vs. VEA
Compare and contrast key facts about Vanguard FTSE All-World ex-US ETF (VEU) and Vanguard FTSE Developed Markets ETF (VEA).
VEU and VEA are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VEU is a passively managed fund by Vanguard that tracks the performance of the FTSE All-World ex US Index. It was launched on Mar 2, 2007. VEA is a passively managed fund by Vanguard that tracks the performance of the MSCI EAFE Index. It was launched on Jul 20, 2007. Both VEU and VEA are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VEU or VEA.
Key characteristics
| VEU | VEA | |
|---|---|---|
| YTD Return | 6.15% | 4.20% |
| 1Y Return | 13.39% | 12.52% |
| 3Y Return (Ann) | 0.62% | 0.93% |
| 5Y Return (Ann) | 5.31% | 5.65% |
| 10Y Return (Ann) | 4.84% | 5.23% |
| Sharpe Ratio | 1.02 | 0.96 |
| Sortino Ratio | 1.48 | 1.38 |
| Omega Ratio | 1.18 | 1.17 |
| Calmar Ratio | 1.11 | 1.24 |
| Martin Ratio | 5.38 | 4.78 |
| Ulcer Index | 2.40% | 2.57% |
| Daily Std Dev | 12.64% | 12.84% |
| Max Drawdown | -61.52% | -60.70% |
| Current Drawdown | -7.87% | -8.03% |
Correlation
The correlation between VEU and VEA is 0.97, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VEU vs. VEA - Performance Comparison
In the year-to-date period, VEU achieves a 6.15% return, which is significantly higher than VEA's 4.20% return. Over the past 10 years, VEU has underperformed VEA with an annualized return of 4.84%, while VEA has yielded a comparatively higher 5.23% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VEU vs. VEA - Expense Ratio Comparison
VEU has a 0.07% expense ratio, which is higher than VEA's 0.05% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
VEU vs. VEA - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE All-World ex-US ETF (VEU) and Vanguard FTSE Developed Markets ETF (VEA). 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.
Dividends
VEU vs. VEA - Dividend Comparison
VEU's dividend yield for the trailing twelve months is around 3.01%, less than VEA's 3.06% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VEU Vanguard FTSE All-World ex-US ETF | 3.01% | 3.32% | 3.12% | 3.07% | 2.00% | 3.10% | 3.27% | 2.66% | 2.96% | 2.95% | 3.52% | 2.66% |
VEA Vanguard FTSE Developed Markets ETF | 3.06% | 3.16% | 2.91% | 3.16% | 2.04% | 3.04% | 3.35% | 2.77% | 3.05% | 2.92% | 3.68% | 2.60% |
Drawdowns
VEU vs. VEA - Drawdown Comparison
The maximum VEU drawdown since its inception was -61.52%, roughly equal to the maximum VEA drawdown of -60.70%. Use the drawdown chart below to compare losses from any high point for VEU and VEA. For additional features, visit the drawdowns tool.
Volatility
VEU vs. VEA - Volatility Comparison
Vanguard FTSE All-World ex-US ETF (VEU) and Vanguard FTSE Developed Markets ETF (VEA) have volatilities of 3.86% and 3.73%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.