VEUSX vs. VFWAX

Last updated Jun 5, 2026

VEUSX (Vanguard European Stock Index Fund Admiral Shares) and VFWAX (Vanguard FTSE All-World ex-US Index Fund Admiral Shares) are both mutual funds - VEUSX is a Europe Equities fund managed by Vanguard, while VFWAX is a Foreign Large Cap Equities fund managed by Vanguard. Over the past 10 years, VEUSX returned 9.24%/yr vs 9.94%/yr for VFWAX. Their correlation of 0.93 suggests significant overlap in exposure. VEUSX charges 0.10%/yr vs 0.11%/yr for VFWAX.

Performance

VEUSX vs. VFWAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard European Stock Index Fund Admiral Shares (VEUSX) and Vanguard FTSE All-World ex-US Index Fund Admiral Shares (VFWAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VEUSX achieves a 5.74% return, which is significantly lower than VFWAX's 14.86% return. Over the past 10 years, VEUSX has underperformed VFWAX with an annualized return of 9.24%, while VFWAX has yielded a comparatively higher 9.94% annualized return.

VEUSX

• 1D: -1.25%
• 1M: 1.30%
• YTD: 5.74%
• 6M: 8.90%
• 1Y: 17.47%
• 3Y*: 16.38%
• 5Y*: 8.24%
• 10Y*: 9.24%

VFWAX

• 1D: -0.79%
• 1M: 3.90%
• YTD: 14.86%
• 6M: 17.34%
• 1Y: 31.93%
• 3Y*: 19.73%
• 5Y*: 8.69%
• 10Y*: 9.94%

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

VEUSX vs. VFWAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEUSX Vanguard European Stock Index Fund Admiral Shares	5.74%	35.41%	2.01%	19.99%	-16.06%	16.28%	6.43%	24.22%	-14.81%	27.04%
VFWAX Vanguard FTSE All-World ex-US Index Fund Admiral Shares	14.86%	32.32%	5.43%	15.55%	-15.51%	8.08%	11.34%	21.53%	-13.97%	27.20%

Correlation

The correlation between VEUSX and VFWAX is 0.91, 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	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (10Y) Calculated over the trailing 10-year period	0.93
Correlation (All Time) Calculated using the full available price history since Sep 28, 2011	0.93

The correlation between VEUSX and VFWAX has been stable across timeframes, ranging from 0.91 to 0.93 - a consistent structural relationship.

VEUSX vs. VFWAX - Sectors Allocation Comparison

Sectors	VEUSX	VFWAX
Financial Services	23.9%	23.3%
Industrials	19.5%	15.7%
Healthcare	12.1%	7.1%
Consumer Defensive	8.5%	5.1%
Technology	8.3%	18.5%
Consumer Cyclical	6.8%	8.2%
Basic Materials	5.4%	7.1%
Energy	5.3%	5.2%
Utilities	4.8%	3.2%
Communication Services	3.3%	4.6%
Real Estate	1.5%	2.0%

Return for Risk

VEUSX vs. VFWAX — Risk / Return Rank

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

VEUSX

VEUSX Risk / Return Rank: 18
VEUSX Sharpe Ratio Rank: 17
VEUSX Sortino Ratio Rank: 17
VEUSX Omega Ratio Rank: 17
VEUSX Calmar Ratio Rank: 18
VEUSX Martin Ratio Rank: 22

VFWAX

VFWAX Risk / Return Rank: 57
VFWAX Sharpe Ratio Rank: 59
VFWAX Sortino Ratio Rank: 54
VFWAX Omega Ratio Rank: 58
VFWAX Calmar Ratio Rank: 57
VFWAX Martin Ratio Rank: 56

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.

VEUSX vs. VFWAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard European Stock Index Fund Admiral Shares (VEUSX) and Vanguard FTSE All-World ex-US Index Fund Admiral Shares (VFWAX). 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.

	VEUSX	VFWAX	Difference
Sharpe ratio: Return per unit of total volatility	1.20	2.28	-1.09
Sortino ratio: Return per unit of downside risk	1.75	3.10	-1.36
Omega ratio: Gain probability vs. loss probability	1.22	1.42	-0.20
Calmar ratio: Return relative to maximum drawdown	1.52	2.90	-1.38
Martin ratio: Return relative to average drawdown	5.62	11.40	-5.79
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VEUSX vs. VFWAX - Sharpe Ratio Comparison

The current VEUSX Sharpe Ratio is 1.20, which is lower than the VFWAX Sharpe Ratio of 2.28. The chart below compares the historical Sharpe Ratios of VEUSX and VFWAX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VEUSX	VFWAX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.20	2.28	-1.09
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.48	0.58	-0.10
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.51	0.62	-0.11
Sharpe Ratio (All Time) Calculated using the full available price history	0.31	0.52	-0.20

Drawdowns

VEUSX vs. VFWAX - Drawdown Comparison

The maximum VEUSX drawdown since its inception was -63.28%, which is greater than VFWAX's maximum drawdown of -34.93%. Use the drawdown chart below to compare losses from any high point for VEUSX and VFWAX.

Drawdown Indicators

	VEUSX	VFWAX	Difference
Max Drawdown Largest peak-to-trough decline	-63.28%	-34.93%	-28.35%
Max Drawdown (1Y) Largest decline over 1 year	-11.97%	-11.34%	-0.63%
Max Drawdown (3Y) Largest decline over 3 years	-13.96%	-13.25%	-0.71%
Max Drawdown (5Y) Largest decline over 5 years	-32.72%	-29.40%	-3.32%
Max Drawdown (10Y) Largest decline over 10 years	-36.87%	-34.93%	-1.94%
Current Drawdown Current decline from peak	-2.38%	-0.79%	-1.59%
Average Drawdown Average peak-to-trough decline	-12.95%	-7.19%	-5.76%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.24%	2.88%	+0.36%

Volatility

VEUSX vs. VFWAX - Volatility Comparison

Vanguard European Stock Index Fund Admiral Shares (VEUSX) has a higher volatility of 5.39% compared to Vanguard FTSE All-World ex-US Index Fund Admiral Shares (VFWAX) at 4.97%. This indicates that VEUSX's price experiences larger fluctuations and is considered to be riskier than VFWAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEUSX	VFWAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.39%	4.97%	+0.42%
Volatility (6M) Calculated over the trailing 6-month period	12.59%	12.09%	+0.50%
Volatility (1Y) Calculated over the trailing 1-year period	15.25%	14.41%	+0.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.39%	15.19%	+2.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.24%	16.08%	+2.16%

VEUSX vs. VFWAX - Expense Ratio Comparison

VEUSX has a 0.10% expense ratio, which is lower than VFWAX's 0.11% 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

VEUSX vs. VFWAX - Dividend Comparison

VEUSX's dividend yield for the trailing twelve months is around 2.80%, more than VFWAX's 2.57% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VEUSX Vanguard European Stock Index Fund Admiral Shares	2.80%	2.84%	3.58%	3.13%	3.22%	3.02%	2.08%	3.26%	3.92%	2.70%	3.52%	3.24%
VFWAX Vanguard FTSE All-World ex-US Index Fund Admiral Shares	2.57%	3.05%	3.20%	3.28%	3.07%	3.03%	1.97%	3.07%	3.24%	2.67%	2.96%	2.95%

Frequently Asked Questions

Can I hold both VEUSX and VFWAX in my portfolio?

With a correlation of 0.91, VEUSX and VFWAX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VEUSX or VFWAX?

VEUSX has higher volatility (5.39%) compared to VFWAX (4.97%). In terms of maximum drawdown, VEUSX dropped -63.28% vs VFWAX's -34.93%.

Which has better risk-adjusted returns?

VFWAX currently has the higher Sharpe Ratio (2.28 vs 1.20), 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.