VEU vs. VWO
Compare and contrast key facts about Vanguard FTSE All-World ex-US ETF (VEU) and Vanguard FTSE Emerging Markets ETF (VWO).
VEU and VWO 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. VWO is a passively managed fund by Vanguard that tracks the performance of the FTSE Emerging Index. It was launched on Mar 4, 2005. Both VEU and VWO 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 VWO.
Key characteristics
| VEU | VWO | |
|---|---|---|
| YTD Return | 5.44% | 2.05% |
| 1Y Return | 20.14% | 10.64% |
| 5Y Return (Ann) | 2.90% | 1.98% |
| 10Y Return (Ann) | 3.58% | 2.34% |
| Sharpe Ratio | 1.13 | 0.50 |
| Daily Std Dev | 16.19% | 17.05% |
| Max Drawdown | -61.52% | -67.68% |
Correlation
The correlation between VEU and VWO is 0.89, 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.
VEU vs. VWO - Performance Comparison
In the year-to-date period, VEU achieves a 5.44% return, which is significantly higher than VWO's 2.05% return. Over the past 10 years, VEU has outperformed VWO with an annualized return of 3.58%, while VWO has yielded a comparatively lower 2.34% 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. VWO - Dividend Comparison
VEU's dividend yield for the trailing twelve months is around 3.16%, more than VWO's 3.10% yield.
| TTM | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VEU Vanguard FTSE All-World ex-US ETF | 3.16% | 3.18% | 3.23% | 2.16% | 3.44% | 3.74% | 3.14% | 3.60% | 3.70% | 4.53% | 3.54% | 4.02% |
VWO Vanguard FTSE Emerging Markets ETF | 3.10% | 4.17% | 2.77% | 2.06% | 3.58% | 3.30% | 2.71% | 3.03% | 4.03% | 3.64% | 3.58% | 2.95% |
VEU vs. VWO - Expense Ratio Comparison
VEU vs. VWO - 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 Emerging Markets ETF (VWO). 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.
| Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Ulcer Index | |
|---|---|---|---|---|---|
VEU Vanguard FTSE All-World ex-US ETF | 1.13 | ||||
VWO Vanguard FTSE Emerging Markets ETF | 0.50 |
VEU vs. VWO - Drawdown Comparison
The maximum VEU drawdown for the period was -14.43%, higher than the maximum VWO drawdown of -26.15%. The drawdown chart below compares losses from any high point along the way for VEU and VWO
VEU vs. VWO - Volatility Comparison
The current volatility for Vanguard FTSE All-World ex-US ETF (VEU) is 3.16%, while Vanguard FTSE Emerging Markets ETF (VWO) has a volatility of 3.40%. This indicates that VEU experiences smaller price fluctuations and is considered to be less risky than VWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.