VIOO vs. VEU

Last updated Jun 3, 2026

VIOO (Vanguard S&P Small-Cap 600 ETF) and VEU (Vanguard FTSE All-World ex-US ETF) are both exchange-traded funds - VIOO is a Small Cap Blend Equities fund tracking the S&P SmallCap 600 Index, while VEU is a Foreign Large Cap Equities fund tracking the FTSE All-World ex US Index. Both are passively managed. Over the past 10 years, VIOO returned 10.77%/yr vs 10.05%/yr for VEU. A 0.70 correlation means they provide meaningful diversification when combined. VIOO charges 0.10%/yr vs 0.04%/yr for VEU.

Performance

VIOO vs. VEU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard S&P Small-Cap 600 ETF (VIOO) and Vanguard FTSE All-World ex-US ETF (VEU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with VIOO having a 16.37% return and VEU slightly lower at 15.73%. Over the past 10 years, VIOO has outperformed VEU with an annualized return of 10.77%, while VEU has yielded a comparatively lower 10.05% annualized return.

VIOO

• 1D: 0.91%
• 1M: 1.63%
• YTD: 16.37%
• 6M: 16.85%
• 1Y: 34.98%
• 3Y*: 14.74%
• 5Y*: 5.91%
• 10Y*: 10.77%

VEU

• 1D: 0.73%
• 1M: 5.19%
• YTD: 15.73%
• 6M: 18.94%
• 1Y: 33.06%
• 3Y*: 20.01%
• 5Y*: 9.10%
• 10Y*: 10.05%

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

VIOO vs. VEU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VIOO Vanguard S&P Small-Cap 600 ETF	16.37%	6.04%	8.48%	16.16%	-16.26%	26.79%	11.47%	22.68%	-8.65%	13.16%
VEU Vanguard FTSE All-World ex-US ETF	15.73%	32.35%	5.56%	15.84%	-15.58%	8.27%	11.10%	21.83%	-14.18%	27.40%

Correlation

The correlation between VIOO and VEU is 0.68, 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	0.68
Correlation (3Y) Calculated over the trailing 3-year period	0.68
Correlation (5Y) Calculated over the trailing 5-year period	0.71
Correlation (10Y) Calculated over the trailing 10-year period	0.70
Correlation (All Time) Calculated using the full available price history since Sep 10, 2010	0.70

The correlation between VIOO and VEU has been stable across timeframes, ranging from 0.68 to 0.71 - a consistent structural relationship.

VIOO vs. VEU - Sectors Allocation Comparison

Sectors	VIOO	VEU
Financial Services	16.9%	23.3%
Industrials	15.5%	15.7%
Technology	15.5%	18.5%
Consumer Cyclical	13.4%	8.2%
Healthcare	11.0%	7.1%
Real Estate	7.7%	2.0%
Energy	5.9%	5.2%
Basic Materials	5.1%	7.1%
Communication Services	3.6%	4.6%
Consumer Defensive	3.5%	5.1%
Utilities	2.0%	3.2%

Return for Risk

VIOO vs. VEU — Risk / Return Rank

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

VIOO

VIOO Risk / Return Rank: 64
VIOO Sharpe Ratio Rank: 58
VIOO Sortino Ratio Rank: 61
VIOO Omega Ratio Rank: 55
VIOO Calmar Ratio Rank: 76
VIOO Martin Ratio Rank: 70

VEU

VEU Risk / Return Rank: 64
VEU Sharpe Ratio Rank: 65
VEU Sortino Ratio Rank: 64
VEU Omega Ratio Rank: 65
VEU Calmar Ratio Rank: 60
VEU Martin Ratio Rank: 64

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.

VIOO vs. VEU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard S&P Small-Cap 600 ETF (VIOO) and Vanguard FTSE All-World ex-US ETF (VEU). 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.

	VIOO	VEU	Difference
Sharpe ratio Return per unit of total volatility	2.00	2.18	-0.18
Sortino ratio Return per unit of downside risk	2.88	3.00	-0.12
Omega ratio Gain probability vs. loss probability	1.34	1.40	-0.06
Calmar ratio Return relative to maximum drawdown	3.93	3.01	+0.92
Martin ratio Return relative to average drawdown	13.17	11.72	+1.45
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VIOO vs. VEU - Sharpe Ratio Comparison

The current VIOO Sharpe Ratio is 2.00, which is comparable to the VEU Sharpe Ratio of 2.18. The chart below compares the historical Sharpe Ratios of VIOO and VEU, 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

	VIOO	VEU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.00	2.18	-0.18
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.28	0.57	-0.29
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.47	0.59	-0.12
Sharpe Ratio (All Time) Calculated using the full available price history	0.58	0.26	+0.32

Drawdowns

VIOO vs. VEU - Drawdown Comparison

The maximum VIOO drawdown since its inception was -44.15%, smaller than the maximum VEU drawdown of -61.52%. Use the drawdown chart below to compare losses from any high point for VIOO and VEU.

Drawdown Indicators

	VIOO	VEU	Difference
Max Drawdown Largest peak-to-trough decline	-44.15%	-61.52%	+17.37%
Max Drawdown (1Y) Largest decline over 1 year	-8.77%	-11.43%	+2.66%
Max Drawdown (3Y) Largest decline over 3 years	-27.93%	-13.69%	-14.24%
Max Drawdown (5Y) Largest decline over 5 years	-27.93%	-29.31%	+1.38%
Max Drawdown (10Y) Largest decline over 10 years	-44.15%	-34.98%	-9.17%
Current Drawdown Current decline from peak	-0.01%	0.00%	-0.01%
Average Drawdown Average peak-to-trough decline	-7.34%	-13.14%	+5.80%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.62%	2.93%	-0.31%

Volatility

VIOO vs. VEU - Volatility Comparison

The current volatility for Vanguard S&P Small-Cap 600 ETF (VIOO) is 4.40%, while Vanguard FTSE All-World ex-US ETF (VEU) has a volatility of 5.57%. This indicates that VIOO experiences smaller price fluctuations and is considered to be less risky than VEU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VIOO	VEU	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.40%	5.57%	-1.17%
Volatility (6M) Calculated over the trailing 6-month period	11.69%	13.01%	-1.32%
Volatility (1Y) Calculated over the trailing 1-year period	17.57%	15.28%	+2.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.40%	16.07%	+5.33%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.99%	17.21%	+5.78%

VIOO vs. VEU - Expense Ratio Comparison

VIOO has a 0.10% expense ratio, which is higher than VEU's 0.04% 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

VIOO vs. VEU - Dividend Comparison

VIOO's dividend yield for the trailing twelve months is around 1.17%, less than VEU's 2.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VEU Vanguard FTSE All-World ex-US ETF	2.58%	3.09%	3.24%	3.32%	3.12%	3.08%	2.00%	3.10%	3.27%	2.66%	2.96%	2.95%
VIOO Vanguard S&P Small-Cap 600 ETF	1.17%	1.36%	1.48%	1.47%	1.51%	1.16%	1.09%	1.37%	1.32%	1.11%	1.06%	1.26%

Frequently Asked Questions

Can I hold both VIOO and VEU in my portfolio?

VIOO and VEU have a correlation of 0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VIOO or VEU?

VEU has higher volatility (5.57%) compared to VIOO (4.40%). In terms of maximum drawdown, VIOO dropped -44.15% vs VEU's -61.52%.

Which ETF is better, VIOO or VEU?

On 10-year performance, VIOO leads with 10.77% vs 10.05% for VEU. On fees, VEU is cheaper at 0.04% per year. On volatility, VIOO has been the lower-risk option at 4.40%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VIOO or VEU?

Over the 10-year period, VIOO has performed better with a 10.77% return vs 10.05%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VIOO or VEU?

VEU is cheaper with a 0.04% expense ratio, compared with 0.10% for VIOO.

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

VEU has the higher dividend yield at 2.58%, compared with 1.17% for VIOO.

What is the main difference between VIOO and VEU?

VIOO is categorized as Small Cap Blend Equities, while VEU is Foreign Large Cap Equities. VIOO tracks S&P SmallCap 600 Index, while VEU tracks FTSE All-World ex US Index. Their fees differ too: 0.10% for VIOO and 0.04% for VEU.

Which has better risk-adjusted returns?

VEU currently has the higher Sharpe Ratio (2.18 vs 2.00), 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.