VEU vs. VYMI

Last updated Jul 15, 2026

VEU (Vanguard FTSE All-World ex-US ETF) and VYMI (Vanguard International High Dividend Yield ETF) are both exchange-traded funds - VEU is a Foreign Large Cap Equities fund tracking the FTSE All-World ex US Index, while VYMI is a Dividend fund tracking the FTSE All-World ex US High Dividend Yield Index. Both are passively managed. Over the past 10 years, VEU returned 9.73%/yr vs 10.74%/yr for VYMI. Their correlation of 0.95 suggests significant overlap in exposure. VEU charges 0.04%/yr vs 0.07%/yr for VYMI.

Performance

VEU vs. VYMI - 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 International High Dividend Yield ETF (VYMI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VEU achieves a 13.33% return, which is significantly lower than VYMI's 14.27% return. Over the past 10 years, VEU has underperformed VYMI with an annualized return of 9.73%, while VYMI has yielded a comparatively higher 10.74% annualized return.

VEU

• 1D: 1.04%
• 1M: -0.66%
• 6M: 9.33%
• YTD: 13.33%
• 1Y: 26.91%
• 3Y*: 17.68%
• 5Y*: 8.97%
• 10Y*: 9.73%

VYMI

• 1D: 0.73%
• 1M: 1.22%
• 6M: 12.02%
• YTD: 14.27%
• 1Y: 30.03%
• 3Y*: 21.26%
• 5Y*: 13.38%
• 10Y*: 10.74%

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

VEU vs. VYMI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEU Vanguard FTSE All-World ex-US ETF	13.33%	32.35%	5.56%	15.84%	-15.58%	8.27%	11.10%	21.83%	-14.18%	27.40%
VYMI Vanguard International High Dividend Yield ETF	14.27%	38.05%	7.06%	17.07%	-7.02%	15.39%	-1.11%	18.43%	-12.65%	22.36%

Correlation

The correlation between VEU and VYMI is 0.90, 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	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since Mar 2, 2016	0.95

The correlation between VEU and VYMI has been stable across timeframes, ranging from 0.90 to 0.95 - a consistent structural relationship.

VEU vs. VYMI - Sectors Allocation Comparison

Sectors	VEU	VYMI
Financial Services	22.6%	42.0%
Technology	21.6%	5.4%
Industrials	15.0%	6.5%
Consumer Cyclical	8.0%	6.5%
Basic Materials	7.1%	7.0%
Healthcare	6.7%	6.6%
Consumer Defensive	4.9%	6.8%
Energy	4.7%	8.9%
Communication Services	4.5%	4.0%
Utilities	3.0%	5.3%
Real Estate	1.9%	1.2%

Return for Risk

VEU vs. VYMI — Risk / Return Rank

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

VEU

VEU Risk / Return Rank: 61
VEU Sharpe Ratio Rank: 61
VEU Sortino Ratio Rank: 60
VEU Omega Ratio Rank: 62
VEU Calmar Ratio Rank: 59
VEU Martin Ratio Rank: 62

VYMI

VYMI Risk / Return Rank: 82
VYMI Sharpe Ratio Rank: 88
VYMI Sortino Ratio Rank: 87
VYMI Omega Ratio Rank: 86
VYMI Calmar Ratio Rank: 73
VYMI Martin Ratio Rank: 78

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. VYMI - 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 International High Dividend Yield ETF (VYMI). 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	VYMI	Difference
Sharpe ratio: Return per unit of total volatility	1.62	2.28	-0.65
Sortino ratio: Return per unit of downside risk	2.24	3.13	-0.89
Omega ratio: Gain probability vs. loss probability	1.30	1.41	-0.11
Calmar ratio: Return relative to maximum drawdown	2.37	2.98	-0.61
Martin ratio: Return relative to average drawdown	8.87	11.58	-2.71

VEU vs. VYMI - Sharpe Ratio Comparison

The current VEU Sharpe Ratio is 1.62, which is comparable to the VYMI Sharpe Ratio of 2.28. The chart below compares the historical Sharpe Ratios of VEU and VYMI, 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. VYMI - Drawdown Comparison

The maximum VEU drawdown since its inception was -61.52%, which is greater than VYMI's maximum drawdown of -40.00%. Use the drawdown chart below to compare losses from any high point for VEU and VYMI.

Drawdown Indicators

	VEU	VYMI	Difference
Max Drawdown Largest peak-to-trough decline	-61.52%	-40.00%	-21.52%
Max Drawdown (1Y) Largest decline over 1 year	-11.43%	-10.14%	-1.29%
Max Drawdown (3Y) Largest decline over 3 years	-13.69%	-12.84%	-0.85%
Max Drawdown (5Y) Largest decline over 5 years	-29.14%	-24.05%	-5.09%
Max Drawdown (10Y) Largest decline over 10 years	-34.98%	-40.00%	+5.02%
Current Drawdown Current decline from peak	-2.79%	0.00%	-2.79%
Average Drawdown Average peak-to-trough decline	-13.07%	-6.26%	-6.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.04%	2.60%	+0.44%

Volatility

VEU vs. VYMI - Volatility Comparison

Vanguard FTSE All-World ex-US ETF (VEU) has a higher volatility of 5.41% compared to Vanguard International High Dividend Yield ETF (VYMI) at 3.03%. This indicates that VEU's price experiences larger fluctuations and is considered to be riskier than VYMI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEU	VYMI	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.41%	3.03%	+2.38%
Volatility (6M) Calculated over the trailing 6-month period	14.78%	11.32%	+3.46%
Volatility (1Y) Calculated over the trailing 1-year period	16.67%	13.26%	+3.41%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.33%	14.86%	+1.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.05%	16.54%	+0.51%

VEU vs. VYMI - Expense Ratio Comparison

VEU has a 0.04% expense ratio, which is lower than VYMI's 0.07% expense ratio. Despite the difference, 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. VYMI - Dividend Comparison

VEU's dividend yield for the trailing twelve months is around 2.56%, less than VYMI's 3.58% 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%
VYMI Vanguard International High Dividend Yield ETF	3.58%	3.68%	4.84%	4.58%	4.70%	4.30%	3.22%	4.20%	4.29%	3.21%	2.39%	0.00%

Frequently Asked Questions

Can I hold both VEU and VYMI in my portfolio?

VEU and VYMI have a correlation of 0.90, 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 VYMI?

VEU has higher volatility (5.41%) compared to VYMI (3.03%). In terms of maximum drawdown, VEU dropped -61.52% vs VYMI's -40.00%.

Which ETF is better, VEU or VYMI?

On 10-year performance, VYMI leads with 10.74% vs 9.73% for VEU. On fees, VEU is cheaper at 0.04% per year. On volatility, VYMI has been the lower-risk option at 3.03%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VEU or VYMI?

Over the 10-year period, VYMI has performed better with a 10.74% return vs 9.73%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VEU or VYMI?

VEU is cheaper with a 0.04% expense ratio, compared with 0.07% for VYMI.

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

VYMI has the higher dividend yield at 3.58%, compared with 2.56% for VEU.

What is the main difference between VEU and VYMI?

VEU is categorized as Foreign Large Cap Equities, while VYMI is Dividend. VEU tracks FTSE All-World ex US Index, while VYMI tracks FTSE All-World ex US High Dividend Yield Index. Their fees differ too: 0.04% for VEU and 0.07% for VYMI.

Which has better risk-adjusted returns?

VYMI currently has the higher Sharpe Ratio (2.28 vs 1.62), 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.