VEU vs. VTI

Last updated Jun 21, 2026

VEU (Vanguard FTSE All-World ex-US ETF) and VTI (Vanguard Total Stock Market ETF) are both exchange-traded funds - VEU is a Foreign Large Cap Equities fund tracking the FTSE All-World ex US Index, while VTI is a Large Cap Blend Equities fund tracking the CRSP US Total Market Index. Both are passively managed. Over the past 10 years, VEU returned 10.20%/yr vs 15.07%/yr for VTI. Their correlation of 0.83 suggests significant overlap in exposure. VEU charges 0.04%/yr vs 0.03%/yr for VTI.

Performance

VEU vs. VTI - 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 Total Stock Market ETF (VTI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VEU achieves a 16.16% return, which is significantly higher than VTI's 10.70% return. Over the past 10 years, VEU has underperformed VTI with an annualized return of 10.20%, while VTI has yielded a comparatively higher 15.07% annualized return.

VEU

• 1D: 1.19%
• 1M: 3.31%
• YTD: 16.16%
• 6M: 17.26%
• 1Y: 34.72%
• 3Y*: 18.96%
• 5Y*: 9.57%
• 10Y*: 10.20%

VTI

• 1D: 1.16%
• 1M: 1.34%
• YTD: 10.70%
• 6M: 10.70%
• 1Y: 27.58%
• 3Y*: 20.67%
• 5Y*: 12.86%
• 10Y*: 15.07%

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

VEU vs. VTI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEU Vanguard FTSE All-World ex-US ETF	16.16%	32.35%	5.56%	15.84%	-15.58%	8.27%	11.10%	21.83%	-14.18%	27.40%
VTI Vanguard Total Stock Market ETF	10.70%	17.10%	23.81%	26.05%	-19.52%	25.68%	21.08%	30.67%	-5.23%	21.21%

Correlation

The correlation between VEU and VTI is 0.82, 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	0.82
Correlation (3Y) Calculated over the trailing 3-year period	0.76
Correlation (5Y) Calculated over the trailing 5-year period	0.78
Correlation (10Y) Calculated over the trailing 10-year period	0.80
Correlation (All Time) Calculated using the full available price history since Mar 8, 2007	0.83

The correlation between VEU and VTI has been stable across timeframes, ranging from 0.76 to 0.83 - a consistent structural relationship.

VEU vs. VTI - Sectors Allocation Comparison

Sectors	VEU	VTI
Financial Services	22.6%	11.3%
Technology	21.6%	37.0%
Industrials	15.0%	9.4%
Consumer Cyclical	8.0%	9.7%
Basic Materials	7.1%	1.9%
Healthcare	6.7%	9.0%
Consumer Defensive	4.9%	4.3%
Energy	4.7%	3.3%
Communication Services	4.5%	9.8%
Utilities	3.0%	2.1%
Real Estate	1.9%	2.3%

Return for Risk

VEU vs. VTI — Risk / Return Rank

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

VEU

VEU Risk / Return Rank: 66
VEU Sharpe Ratio Rank: 68
VEU Sortino Ratio Rank: 66
VEU Omega Ratio Rank: 69
VEU Calmar Ratio Rank: 62
VEU Martin Ratio Rank: 65

VTI

VTI Risk / Return Rank: 69
VTI Sharpe Ratio Rank: 70
VTI Sortino Ratio Rank: 67
VTI Omega Ratio Rank: 69
VTI Calmar Ratio Rank: 65
VTI Martin Ratio Rank: 76

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. VTI - 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 Total Stock Market ETF (VTI). 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	VTI	Difference
Sharpe ratio: Return per unit of total volatility	2.10	2.15	-0.06
Sortino ratio: Return per unit of downside risk	2.87	2.91	-0.04
Omega ratio: Gain probability vs. loss probability	1.39	1.39	0.00
Calmar ratio: Return relative to maximum drawdown	2.96	3.07	-0.11
Martin ratio: Return relative to average drawdown	11.36	13.75	-2.39

VEU vs. VTI - Sharpe Ratio Comparison

The current VEU Sharpe Ratio is 2.10, which is comparable to the VTI Sharpe Ratio of 2.15. The chart below compares the historical Sharpe Ratios of VEU and VTI, 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. VTI - Drawdown Comparison

The maximum VEU drawdown since its inception was -61.52%, which is greater than VTI's maximum drawdown of -55.45%. Use the drawdown chart below to compare losses from any high point for VEU and VTI.

Drawdown Indicators

	VEU	VTI	Difference
Max Drawdown Largest peak-to-trough decline	-61.52%	-55.45%	-6.07%
Max Drawdown (1Y) Largest decline over 1 year	-11.43%	-8.92%	-2.51%
Max Drawdown (3Y) Largest decline over 3 years	-13.69%	-19.30%	+5.61%
Max Drawdown (5Y) Largest decline over 5 years	-29.14%	-25.36%	-3.78%
Max Drawdown (10Y) Largest decline over 10 years	-34.98%	-35.00%	+0.02%
Current Drawdown Current decline from peak	0.00%	-1.17%	+1.17%
Average Drawdown Average peak-to-trough decline	-13.11%	-8.01%	-5.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.97%	1.99%	+0.98%

Volatility

VEU vs. VTI - Volatility Comparison

Vanguard FTSE All-World ex-US ETF (VEU) has a higher volatility of 6.47% compared to Vanguard Total Stock Market ETF (VTI) at 4.84%. This indicates that VEU's price experiences larger fluctuations and is considered to be riskier than VTI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEU	VTI	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.47%	4.84%	+1.63%
Volatility (6M) Calculated over the trailing 6-month period	14.14%	10.03%	+4.11%
Volatility (1Y) Calculated over the trailing 1-year period	16.15%	12.74%	+3.41%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.24%	17.50%	-1.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.25%	18.35%	-1.10%

VEU vs. VTI - Expense Ratio Comparison

VEU has a 0.04% expense ratio, which is higher than VTI's 0.03% 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%.

Dividends

VEU vs. VTI - Dividend Comparison

VEU's dividend yield for the trailing twelve months is around 3.05%, more than VTI's 1.02% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VEU Vanguard FTSE All-World ex-US ETF	2.49%	3.09%	3.24%	3.32%	3.12%	3.08%	2.00%	3.10%	3.27%	2.66%	2.96%	2.95%
VTI Vanguard Total Stock Market ETF	1.02%	1.12%	1.27%	1.44%	1.66%	1.21%	1.42%	1.78%	2.04%	1.71%	1.92%	1.98%

Frequently Asked Questions

Can I hold both VEU and VTI in my portfolio?

VEU and VTI have a correlation of 0.82, 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 VTI?

VEU has higher volatility (6.47%) compared to VTI (4.84%). In terms of maximum drawdown, VEU dropped -61.52% vs VTI's -55.45%.

Which ETF is better, VEU or VTI?

On 10-year performance, VTI leads with 15.07% vs 10.20% for VEU. On fees, VTI is cheaper at 0.03% per year. On volatility, VTI has been the lower-risk option at 4.84%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VEU or VTI?

Over the 10-year period, VTI has performed better with a 15.07% return vs 10.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VEU or VTI?

VTI is cheaper with a 0.03% expense ratio, compared with 0.04% for VEU.

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

VEU has the higher dividend yield at 2.49%, compared with 1.02% for VTI.

What is the main difference between VEU and VTI?

VEU is categorized as Foreign Large Cap Equities, while VTI is Large Cap Blend Equities. VEU tracks FTSE All-World ex US Index, while VTI tracks CRSP US Total Market Index. Their fees differ too: 0.04% for VEU and 0.03% for VTI.

Which has better risk-adjusted returns?

VTI currently has the higher Sharpe Ratio (2.15 vs 2.10), 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.