VFEM.L vs. CEUG.L

Last updated Jun 13, 2026

VFEM.L (Vanguard FTSE Emerging Markets UCITS ETF Distributing) and CEUG.L (iShares MSCI EMU UCITS ETF GBP Hedged (Dist)) are both exchange-traded funds - VFEM.L is a Emerging Markets Equities fund tracking the MSCI EM NR USD, while CEUG.L is a Europe Equities fund tracking the MSCI Europe NR EUR. Both are passively managed. Over the past 5 years, VFEM.L returned 5.97%/yr vs 12.17%/yr for CEUG.L. A 0.56 correlation means they provide meaningful diversification when combined. VFEM.L charges 0.22%/yr vs 0.12%/yr for CEUG.L.

Performance

VFEM.L vs. CEUG.L - Performance Comparison

The chart below illustrates the hypothetical performance of a £10,000 investment in Vanguard FTSE Emerging Markets UCITS ETF Distributing (VFEM.L) and iShares MSCI EMU UCITS ETF GBP Hedged (Dist) (CEUG.L). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VFEM.L achieves a 10.41% return, which is significantly lower than CEUG.L's 11.57% return.

VFEM.L

• 1D: 1.96%
• 1M: -0.07%
• YTD: 10.41%
• 6M: 11.41%
• 1Y: 25.82%
• 3Y*: 14.24%
• 5Y*: 5.97%
• 10Y*: 9.54%

CEUG.L

• 1D: 2.06%
• 1M: 5.84%
• YTD: 11.57%
• 6M: 13.31%
• 1Y: 22.80%
• 3Y*: 18.00%
• 5Y*: 12.17%
• 10Y*: —

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

VFEM.L vs. CEUG.L - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
VFEM.L Vanguard FTSE Emerging Markets UCITS ETF Distributing	10.41%	16.90%	14.50%	1.36%	-7.39%	0.09%	11.19%	15.14%	-5.55%
CEUG.L iShares MSCI EMU UCITS ETF GBP Hedged (Dist)	11.57%	26.85%	10.80%	20.45%	-10.50%	22.91%	-0.24%	26.08%	-12.18%

Correlation

The correlation between VFEM.L and CEUG.L is 0.58, 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	0.58
Correlation (3Y) Calculated over the trailing 3-year period	0.55
Correlation (5Y) Calculated over the trailing 5-year period	0.52
Correlation (All Time) Calculated using the full available price history since May 31, 2018	0.56

The correlation between VFEM.L and CEUG.L has been stable across timeframes, ranging from 0.52 to 0.58 - a consistent structural relationship.

VFEM.L vs. CEUG.L - Sectors Allocation Comparison

Sectors	VFEM.L	CEUG.L
Technology	29.6%	14.6%
Financial Services	20.8%	24.2%
Consumer Cyclical	10.8%	8.3%
Basic Materials	7.8%	4.1%
Communication Services	7.5%	4.1%
Industrials	7.1%	21.4%
Energy	4.9%	4.2%
Consumer Defensive	3.6%	5.6%
Healthcare	3.4%	5.8%
Utilities	3.0%	6.8%
Real Estate	1.7%	1.0%

Return for Risk

VFEM.L vs. CEUG.L — Risk / Return Rank

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

VFEM.L

VFEM.L Risk / Return Rank: 62
VFEM.L Sharpe Ratio Rank: 63
VFEM.L Sortino Ratio Rank: 61
VFEM.L Omega Ratio Rank: 62
VFEM.L Calmar Ratio Rank: 66
VFEM.L Martin Ratio Rank: 60

CEUG.L

CEUG.L Risk / Return Rank: 53
CEUG.L Sharpe Ratio Rank: 52
CEUG.L Sortino Ratio Rank: 55
CEUG.L Omega Ratio Rank: 53
CEUG.L Calmar Ratio Rank: 51
CEUG.L Martin Ratio Rank: 55

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.

VFEM.L vs. CEUG.L - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Emerging Markets UCITS ETF Distributing (VFEM.L) and iShares MSCI EMU UCITS ETF GBP Hedged (Dist) (CEUG.L). 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.

	VFEM.L	CEUG.L	Difference
Sharpe ratio: Return per unit of total volatility	1.83	1.59	+0.23
Sortino ratio: Return per unit of downside risk	2.50	2.36	+0.14
Omega ratio: Gain probability vs. loss probability	1.33	1.30	+0.03
Calmar ratio: Return relative to maximum drawdown	2.88	2.26	+0.62
Martin ratio: Return relative to average drawdown	9.32	8.53	+0.79

VFEM.L vs. CEUG.L - Sharpe Ratio Comparison

The current VFEM.L Sharpe Ratio is 1.83, which is comparable to the CEUG.L Sharpe Ratio of 1.59. The chart below compares the historical Sharpe Ratios of VFEM.L and CEUG.L, 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

VFEM.L vs. CEUG.L - Drawdown Comparison

The maximum VFEM.L drawdown since its inception was -32.13%, smaller than the maximum CEUG.L drawdown of -38.52%. Use the drawdown chart below to compare losses from any high point for VFEM.L and CEUG.L.

Drawdown Indicators

	VFEM.L	CEUG.L	Difference
Max Drawdown Largest peak-to-trough decline	-32.13%	-38.52%	+6.39%
Max Drawdown (1Y) Largest decline over 1 year	-8.92%	-10.04%	+1.12%
Max Drawdown (3Y) Largest decline over 3 years	-14.68%	-15.35%	+0.67%
Max Drawdown (5Y) Largest decline over 5 years	-19.58%	-24.06%	+4.48%
Max Drawdown (10Y) Largest decline over 10 years	-25.90%	—	—
Current Drawdown Current decline from peak	-2.67%	0.00%	-2.67%
Average Drawdown Average peak-to-trough decline	-8.58%	-5.50%	-3.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.76%	2.67%	+0.09%

Volatility

VFEM.L vs. CEUG.L - Volatility Comparison

Vanguard FTSE Emerging Markets UCITS ETF Distributing (VFEM.L) has a higher volatility of 5.13% compared to iShares MSCI EMU UCITS ETF GBP Hedged (Dist) (CEUG.L) at 4.17%. This indicates that VFEM.L's price experiences larger fluctuations and is considered to be riskier than CEUG.L based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFEM.L	CEUG.L	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.13%	4.17%	+0.96%
Volatility (6M) Calculated over the trailing 6-month period	11.41%	11.63%	-0.22%
Volatility (1Y) Calculated over the trailing 1-year period	14.09%	14.27%	-0.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.51%	16.25%	-0.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.49%	18.09%	-0.60%

VFEM.L vs. CEUG.L - Expense Ratio Comparison

VFEM.L has a 0.22% expense ratio, which is higher than CEUG.L's 0.12% 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

VFEM.L vs. CEUG.L - Dividend Comparison

VFEM.L's dividend yield for the trailing twelve months is around 2.06%, less than CEUG.L's 2.32% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CEUG.L iShares MSCI EMU UCITS ETF GBP Hedged (Dist)	2.32%	2.53%	2.81%	2.73%	2.84%	1.81%	1.77%	3.05%	0.38%	0.00%	0.00%	0.00%
VFEM.L Vanguard FTSE Emerging Markets UCITS ETF Distributing	2.06%	2.36%	2.31%	2.63%	3.28%	2.26%	1.94%	2.43%	2.73%	2.22%	2.22%	2.82%

Frequently Asked Questions

Can I hold both VFEM.L and CEUG.L in my portfolio?

VFEM.L and CEUG.L have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VFEM.L or CEUG.L?

On fees, CEUG.L is cheaper at 0.12% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VFEM.L or CEUG.L?

CEUG.L is cheaper with a 0.12% expense ratio, compared with 0.22% for VFEM.L.

What is the main difference between VFEM.L and CEUG.L?

VFEM.L is categorized as Emerging Markets Equities, while CEUG.L is Europe Equities. VFEM.L tracks MSCI EM NR USD, while CEUG.L tracks MSCI Europe NR EUR. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.22% for VFEM.L and 0.12% for CEUG.L.