VEU vs. VUG

Last updated Jun 24, 2026

VEU (Vanguard FTSE All-World ex-US ETF) and VUG (Vanguard Growth ETF) are both exchange-traded funds - VEU is a Foreign Large Cap Equities fund tracking the FTSE All-World ex US Index, while VUG is a Large Cap Growth Equities fund tracking the CRSP US Large Cap Growth Index. Both are passively managed. Over the past 10 years, VEU returned 10.40%/yr vs 18.02%/yr for VUG. A 0.78 correlation means they provide meaningful diversification when combined. VEU charges 0.04%/yr vs 0.03%/yr for VUG.

Performance

VEU vs. VUG - 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 Growth ETF (VUG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VEU achieves a 13.01% return, which is significantly higher than VUG's 3.52% return. Over the past 10 years, VEU has underperformed VUG with an annualized return of 10.40%, while VUG has yielded a comparatively higher 18.02% annualized return.

VEU

• 1D: -3.06%
• 1M: 0.69%
• YTD: 13.01%
• 6M: 12.81%
• 1Y: 30.08%
• 3Y*: 19.26%
• 5Y*: 8.60%
• 10Y*: 10.40%

VUG

• 1D: -2.12%
• 1M: -3.95%
• YTD: 3.52%
• 6M: 2.23%
• 1Y: 20.05%
• 3Y*: 22.74%
• 5Y*: 12.80%
• 10Y*: 18.02%

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

VEU vs. VUG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEU Vanguard FTSE All-World ex-US ETF	13.01%	32.35%	5.56%	15.84%	-15.58%	8.27%	11.10%	21.83%	-14.18%	27.40%
VUG Vanguard Growth ETF	3.52%	19.40%	32.69%	46.83%	-33.16%	27.35%	40.25%	37.03%	-3.32%	27.72%

Correlation

The correlation between VEU and VUG is 0.70, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.70
Correlation (3Y) Calculated over the trailing 3-year period	0.65
Correlation (5Y) Calculated over the trailing 5-year period	0.69
Correlation (10Y) Calculated over the trailing 10-year period	0.72
Correlation (All Time) Calculated using the full available price history since Mar 8, 2007	0.78

The correlation between VEU and VUG shifts across timeframes, from 0.65 (3 years) to 0.78 (all time), reflecting how their relationship changes across market environments.

VEU vs. VUG - Sectors Allocation Comparison

Sectors	VEU	VUG
Financial Services	22.6%	4.3%
Technology	21.6%	53.5%
Industrials	15.0%	3.6%
Consumer Cyclical	8.0%	12.2%
Basic Materials	7.1%	0.6%
Healthcare	6.7%	4.6%
Consumer Defensive	4.9%	1.5%
Energy	4.7%	0.4%
Communication Services	4.5%	17.3%
Utilities	3.0%	0.9%
Real Estate	1.9%	1.0%

Return for Risk

VEU vs. VUG — Risk / Return Rank

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

VEU

VEU Risk / Return Rank: 56
VEU Sharpe Ratio Rank: 56
VEU Sortino Ratio Rank: 54
VEU Omega Ratio Rank: 57
VEU Calmar Ratio Rank: 55
VEU Martin Ratio Rank: 59

VUG

VUG Risk / Return Rank: 31
VUG Sharpe Ratio Rank: 34
VUG Sortino Ratio Rank: 32
VUG Omega Ratio Rank: 33
VUG Calmar Ratio Rank: 26
VUG Martin Ratio Rank: 30

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. VUG - 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 Growth ETF (VUG). 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	VUG	Difference
Sharpe ratio: Return per unit of total volatility	1.84	1.19	+0.65
Sortino ratio: Return per unit of downside risk	2.52	1.67	+0.85
Omega ratio: Gain probability vs. loss probability	1.34	1.21	+0.13
Calmar ratio: Return relative to maximum drawdown	2.64	1.22	+1.43
Martin ratio: Return relative to average drawdown	10.12	4.15	+5.97

VEU vs. VUG - Sharpe Ratio Comparison

The current VEU Sharpe Ratio is 1.84, which is higher than the VUG Sharpe Ratio of 1.19. The chart below compares the historical Sharpe Ratios of VEU and VUG, 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. VUG - Drawdown Comparison

The maximum VEU drawdown since its inception was -61.52%, which is greater than VUG's maximum drawdown of -50.68%. Use the drawdown chart below to compare losses from any high point for VEU and VUG.

Drawdown Indicators

	VEU	VUG	Difference
Max Drawdown Largest peak-to-trough decline	-61.52%	-50.68%	-10.84%
Max Drawdown (1Y) Largest decline over 1 year	-11.43%	-16.53%	+5.10%
Max Drawdown (3Y) Largest decline over 3 years	-13.69%	-22.85%	+9.16%
Max Drawdown (5Y) Largest decline over 5 years	-29.14%	-35.61%	+6.47%
Max Drawdown (10Y) Largest decline over 10 years	-34.98%	-35.61%	+0.63%
Current Drawdown Current decline from peak	-3.06%	-6.88%	+3.82%
Average Drawdown Average peak-to-trough decline	-13.10%	-7.09%	-6.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.98%	4.84%	-1.86%

Volatility

VEU vs. VUG - Volatility Comparison

Vanguard FTSE All-World ex-US ETF (VEU) and Vanguard Growth ETF (VUG) have volatilities of 7.10% and 6.86%, 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.

Volatility by Period

	VEU	VUG	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.10%	6.86%	+0.24%
Volatility (6M) Calculated over the trailing 6-month period	14.47%	13.44%	+1.03%
Volatility (1Y) Calculated over the trailing 1-year period	16.44%	16.91%	-0.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.30%	22.39%	-6.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.08%	21.51%	-4.43%

VEU vs. VUG - Expense Ratio Comparison

VEU has a 0.04% expense ratio, which is higher than VUG'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. VUG - Dividend Comparison

VEU's dividend yield for the trailing twelve months is around 2.56%, more than VUG's 0.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VEU Vanguard FTSE All-World ex-US ETF	2.56%	3.09%	3.24%	3.32%	3.12%	3.08%	2.00%	3.10%	3.27%	2.66%	2.96%	2.95%
VUG Vanguard Growth ETF	0.39%	0.41%	0.47%	0.58%	0.70%	0.48%	0.66%	0.95%	1.32%	1.14%	1.39%	1.30%

Frequently Asked Questions

Can I hold both VEU and VUG in my portfolio?

VEU and VUG have a correlation of 0.70, 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 VUG?

VEU has higher volatility (7.10%) compared to VUG (6.86%). In terms of maximum drawdown, VEU dropped -61.52% vs VUG's -50.68%.

Which ETF is better, VEU or VUG?

On 10-year performance, VUG leads with 18.02% vs 10.40% for VEU. On fees, VUG is cheaper at 0.03% per year. On volatility, VUG has been the lower-risk option at 6.86%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VEU or VUG?

Over the 10-year period, VUG has performed better with a 18.02% return vs 10.40%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VEU or VUG?

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

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

VEU has the higher dividend yield at 2.56%, compared with 0.39% for VUG.

What is the main difference between VEU and VUG?

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

Which has better risk-adjusted returns?

VEU currently has the higher Sharpe Ratio (1.84 vs 1.19), 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.