VFWAX vs. VEUSX

Last updated Jun 4, 2026

VFWAX (Vanguard FTSE All-World ex-US Index Fund Admiral Shares) and VEUSX (Vanguard European Stock Index Fund Admiral Shares) are both mutual funds - VFWAX is a Foreign Large Cap Equities fund managed by Vanguard, while VEUSX is a Europe Equities fund managed by Vanguard. Over the past 10 years, VFWAX returned 10.03%/yr vs 9.37%/yr for VEUSX. Their correlation of 0.93 suggests significant overlap in exposure. VFWAX charges 0.11%/yr vs 0.10%/yr for VEUSX.

Performance

VFWAX vs. VEUSX - Performance Comparison

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

Returns By Period

In the year-to-date period, VFWAX achieves a 15.78% return, which is significantly higher than VEUSX's 7.08% return. Over the past 10 years, VFWAX has outperformed VEUSX with an annualized return of 10.03%, while VEUSX has yielded a comparatively lower 9.37% annualized return.

VFWAX

• 1D: 0.67%
• 1M: 5.91%
• YTD: 15.78%
• 6M: 18.57%
• 1Y: 33.77%
• 3Y*: 20.05%
• 5Y*: 9.05%
• 10Y*: 10.03%

VEUSX

• 1D: 0.41%
• 1M: 3.96%
• YTD: 7.08%
• 6M: 10.13%
• 1Y: 19.62%
• 3Y*: 16.86%
• 5Y*: 8.68%
• 10Y*: 9.37%

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

VFWAX vs. VEUSX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFWAX Vanguard FTSE All-World ex-US Index Fund Admiral Shares	15.78%	32.32%	5.43%	15.55%	-15.51%	8.08%	11.34%	21.53%	-13.97%	27.20%
VEUSX Vanguard European Stock Index Fund Admiral Shares	7.08%	35.41%	2.01%	19.99%	-16.06%	16.28%	6.43%	24.22%	-14.81%	27.04%

Correlation

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

VFWAX vs. VEUSX - Sectors Allocation Comparison

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

Return for Risk

VFWAX vs. VEUSX — Risk / Return Rank

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

VFWAX

VFWAX Risk / Return Rank: 59
VFWAX Sharpe Ratio Rank: 62
VFWAX Sortino Ratio Rank: 56
VFWAX Omega Ratio Rank: 59
VFWAX Calmar Ratio Rank: 58
VFWAX Martin Ratio Rank: 58

VEUSX

VEUSX Risk / Return Rank: 19
VEUSX Sharpe Ratio Rank: 19
VEUSX Sortino Ratio Rank: 18
VEUSX Omega Ratio Rank: 18
VEUSX Calmar Ratio Rank: 18
VEUSX Martin Ratio Rank: 23

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.

VFWAX vs. VEUSX - Risk-Adjusted Trends Comparison

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

	VFWAX	VEUSX	Difference
Sharpe ratio: Return per unit of total volatility	2.31	1.24	+1.08
Sortino ratio: Return per unit of downside risk	3.14	1.80	+1.34
Omega ratio: Gain probability vs. loss probability	1.43	1.22	+0.20
Calmar ratio: Return relative to maximum drawdown	2.93	1.57	+1.37
Martin ratio: Return relative to average drawdown	11.55	5.79	+5.75
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VFWAX vs. VEUSX - Sharpe Ratio Comparison

The current VFWAX Sharpe Ratio is 2.31, which is higher than the VEUSX Sharpe Ratio of 1.24. The chart below compares the historical Sharpe Ratios of VFWAX and VEUSX, 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

	VFWAX	VEUSX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.31	1.24	+1.08
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.60	0.50	+0.10
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.63	0.52	+0.11
Sharpe Ratio (All Time) Calculated using the full available price history	0.52	0.32	+0.21

Drawdowns

VFWAX vs. VEUSX - Drawdown Comparison

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

Drawdown Indicators

	VFWAX	VEUSX	Difference
Max Drawdown Largest peak-to-trough decline	-34.93%	-63.28%	+28.35%
Max Drawdown (1Y) Largest decline over 1 year	-11.34%	-11.97%	+0.63%
Max Drawdown (3Y) Largest decline over 3 years	-13.25%	-13.96%	+0.71%
Max Drawdown (5Y) Largest decline over 5 years	-29.40%	-32.72%	+3.32%
Max Drawdown (10Y) Largest decline over 10 years	-34.93%	-36.87%	+1.94%
Current Drawdown Current decline from peak	0.00%	-1.15%	+1.15%
Average Drawdown Average peak-to-trough decline	-7.19%	-12.95%	+5.76%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.88%	3.23%	-0.35%

Volatility

VFWAX vs. VEUSX - Volatility Comparison

The current volatility for Vanguard FTSE All-World ex-US Index Fund Admiral Shares (VFWAX) is 4.89%, while Vanguard European Stock Index Fund Admiral Shares (VEUSX) has a volatility of 5.49%. This indicates that VFWAX experiences smaller price fluctuations and is considered to be less risky than VEUSX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFWAX	VEUSX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.89%	5.49%	-0.60%
Volatility (6M) Calculated over the trailing 6-month period	12.06%	12.53%	-0.47%
Volatility (1Y) Calculated over the trailing 1-year period	14.41%	15.21%	-0.80%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.19%	17.38%	-2.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.08%	18.24%	-2.16%

VFWAX vs. VEUSX - Expense Ratio Comparison

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

VFWAX vs. VEUSX - Dividend Comparison

VFWAX's dividend yield for the trailing twelve months is around 2.55%, less than VEUSX's 2.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VEUSX Vanguard European Stock Index Fund Admiral Shares	2.76%	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	2.55%	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 VFWAX and VEUSX in my portfolio?

With a correlation of 0.91, VFWAX and VEUSX 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, VFWAX or VEUSX?

VEUSX has higher volatility (5.49%) compared to VFWAX (4.89%). In terms of maximum drawdown, VFWAX dropped -34.93% vs VEUSX's -63.28%.

Which has better risk-adjusted returns?

VFWAX currently has the higher Sharpe Ratio (2.31 vs 1.24), 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.