VEU vs. VSS

Last updated Apr 2, 2026

Compare and contrast key facts about Vanguard FTSE All-World ex-US ETF (VEU) and Vanguard FTSE All-World ex-US Small-Cap ETF (VSS).

VEU and VSS 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. VSS is a passively managed fund by Vanguard that tracks the performance of the FTSE Global Small Cap ex US Index. It was launched on Apr 2, 2009. Both VEU and VSS are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.

Performance

VEU vs. VSS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE All-World ex-US ETF (VEU) and Vanguard FTSE All-World ex-US Small-Cap ETF (VSS). The values are adjusted to include any dividend payments, if applicable.

VEU vs. VSS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEU Vanguard FTSE All-World ex-US ETF	3.60%	32.35%	5.56%	15.84%	-15.58%	8.27%	11.10%	21.83%	-14.18%	27.40%
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	3.27%	29.61%	2.94%	15.52%	-21.48%	13.05%	11.81%	21.36%	-18.48%	30.61%

Returns By Period

In the year-to-date period, VEU achieves a 3.60% return, which is significantly higher than VSS's 3.27% return. Over the past 10 years, VEU has outperformed VSS with an annualized return of 9.16%, while VSS has yielded a comparatively lower 7.80% annualized return.

VEU

• 1D: 1.32%
• 1M: -5.22%
• YTD: 3.60%
• 6M: 7.76%
• 1Y: 28.98%
• 3Y*: 16.19%
• 5Y*: 7.74%
• 10Y*: 9.16%

VSS

• 1D: 1.52%
• 1M: -6.14%
• YTD: 3.27%
• 6M: 5.96%
• 1Y: 32.12%
• 3Y*: 14.42%
• 5Y*: 5.70%
• 10Y*: 7.80%

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

VEU vs. VSS - Expense Ratio Comparison

Both VEU and VSS have an expense ratio of 0.07%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

VEU

Vanguard FTSE All-World ex-US ETF

VSS

Vanguard FTSE All-World ex-US Small-Cap ETF

Return for Risk

VEU vs. VSS — Risk / Return Rank

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

VEU

VEU Risk / Return Rank: 84
VEU Sharpe Ratio Rank: 83
VEU Sortino Ratio Rank: 85
VEU Omega Ratio Rank: 84
VEU Calmar Ratio Rank: 85
VEU Martin Ratio Rank: 84

VSS

VSS Risk / Return Rank: 89
VSS Sharpe Ratio Rank: 89
VSS Sortino Ratio Rank: 90
VSS Omega Ratio Rank: 91
VSS Calmar Ratio Rank: 87
VSS Martin Ratio Rank: 87

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. VSS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE All-World ex-US ETF (VEU) and Vanguard FTSE All-World ex-US Small-Cap ETF (VSS). 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	VSS	Difference
Sharpe ratio Return per unit of total volatility	1.69	1.97	-0.28
Sortino ratio Return per unit of downside risk	2.32	2.61	-0.29
Omega ratio Gain probability vs. loss probability	1.34	1.40	-0.05
Calmar ratio Return relative to maximum drawdown	2.57	2.80	-0.23
Martin ratio Return relative to average drawdown	9.83	10.97	-1.14
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. VSS - Sharpe Ratio Comparison

The current VEU Sharpe Ratio is 1.69, which is comparable to the VSS Sharpe Ratio of 1.97. The chart below compares the historical Sharpe Ratios of VEU and VSS, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	VEU	VSS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.69	1.97	-0.28
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.49	0.35	+0.14
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.54	0.46	+0.08
Sharpe Ratio (All Time) Calculated using the full available price history	0.23	0.53	-0.30

Correlation

The correlation between VEU and VSS is 0.95, 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.

Dividends

VEU vs. VSS - Dividend Comparison

VEU's dividend yield for the trailing twelve months is around 2.88%, less than VSS's 3.28% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VEU Vanguard FTSE All-World ex-US ETF	2.88%	3.09%	3.24%	3.32%	3.12%	3.08%	2.00%	3.10%	3.27%	2.66%	2.96%	2.95%
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	3.28%	3.39%	3.44%	3.14%	2.30%	2.74%	1.90%	3.25%	2.80%	2.83%	2.93%	2.66%

Drawdowns

VEU vs. VSS - Drawdown Comparison

The maximum VEU drawdown since its inception was -61.52%, which is greater than VSS's maximum drawdown of -43.51%. Use the drawdown chart below to compare losses from any high point for VEU and VSS.

Drawdown Indicators

	VEU	VSS	Difference
Max Drawdown Largest peak-to-trough decline	-61.52%	-43.51%	-18.01%
Max Drawdown (1Y) Largest decline over 1 year	-11.43%	-11.62%	+0.19%
Max Drawdown (5Y) Largest decline over 5 years	-29.31%	-33.93%	+4.62%
Max Drawdown (10Y) Largest decline over 10 years	-34.98%	-43.51%	+8.53%
Current Drawdown Current decline from peak	-7.36%	-7.52%	+0.16%
Average Drawdown Average peak-to-trough decline	-13.23%	-9.72%	-3.51%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.99%	2.97%	+0.02%

Volatility

VEU vs. VSS - Volatility Comparison

Vanguard FTSE All-World ex-US ETF (VEU) has a higher volatility of 7.65% compared to Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) at 7.00%. This indicates that VEU's price experiences larger fluctuations and is considered to be riskier than VSS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEU	VSS	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.65%	7.00%	+0.65%
Volatility (6M) Calculated over the trailing 6-month period	11.61%	11.10%	+0.51%
Volatility (1Y) Calculated over the trailing 1-year period	17.25%	16.40%	+0.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.83%	16.26%	-0.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.13%	17.17%	-0.04%