VPL vs. AAXJ

Last updated Jun 3, 2026

VPL (Vanguard FTSE Pacific ETF) and AAXJ (iShares MSCI All Country Asia ex-Japan ETF) are both Asia Pacific Equities funds - VPL tracks the FTSE Developed Asia Pacific Index while AAXJ tracks the MSCI All Country Asia ex Japan Index. Both are passively managed. Over the past 10 years, VPL returned 10.87%/yr vs 10.62%/yr for AAXJ. Their correlation of 0.80 suggests significant overlap in exposure. VPL charges 0.08%/yr vs 0.68%/yr for AAXJ.

Performance

VPL vs. AAXJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Pacific ETF (VPL) and iShares MSCI All Country Asia ex-Japan ETF (AAXJ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VPL achieves a 30.65% return, which is significantly lower than AAXJ's 32.58% return. Both investments have delivered pretty close results over the past 10 years, with VPL having a 10.87% annualized return and AAXJ not far behind at 10.62%.

VPL

• 1D: 0.40%
• 1M: 10.55%
• YTD: 30.65%
• 6M: 33.92%
• 1Y: 52.92%
• 3Y*: 23.14%
• 5Y*: 10.67%
• 10Y*: 10.87%

AAXJ

• 1D: 0.96%
• 1M: 12.09%
• YTD: 32.58%
• 6M: 35.11%
• 1Y: 60.93%
• 3Y*: 24.93%
• 5Y*: 7.46%
• 10Y*: 10.62%

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

VPL vs. AAXJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VPL Vanguard FTSE Pacific ETF	30.65%	32.66%	1.68%	15.58%	-15.20%	1.10%	16.65%	18.16%	-14.40%	28.85%
AAXJ iShares MSCI All Country Asia ex-Japan ETF	32.58%	31.53%	10.41%	4.79%	-20.35%	-5.73%	23.35%	17.93%	-15.04%	41.76%

Correlation

The correlation between VPL and AAXJ is 0.81, 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	0.81
Correlation (3Y) Calculated over the trailing 3-year period	0.76
Correlation (5Y) Calculated over the trailing 5-year period	0.76
Correlation (10Y) Calculated over the trailing 10-year period	0.79
Correlation (All Time) Calculated using the full available price history since Aug 18, 2008	0.80

The correlation between VPL and AAXJ has been stable across timeframes, ranging from 0.76 to 0.81 - a consistent structural relationship.

VPL vs. AAXJ - Sectors Allocation Comparison

Sectors	VPL	AAXJ
Technology	22.6%	41.6%
Industrials	20.5%	8.3%
Financial Services	19.3%	17.7%
Consumer Cyclical	9.6%	10.3%
Basic Materials	7.3%	3.5%
Healthcare	5.0%	3.0%
Communication Services	4.8%	6.9%
Real Estate	4.3%	1.7%
Consumer Defensive	3.5%	2.4%
Energy	1.6%	2.7%
Utilities	1.6%	1.8%

Return for Risk

VPL vs. AAXJ — Risk / Return Rank

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

VPL

VPL Risk / Return Rank: 80
VPL Sharpe Ratio Rank: 83
VPL Sortino Ratio Rank: 78
VPL Omega Ratio Rank: 81
VPL Calmar Ratio Rank: 79
VPL Martin Ratio Rank: 81

AAXJ

AAXJ Risk / Return Rank: 86
AAXJ Sharpe Ratio Rank: 89
AAXJ Sortino Ratio Rank: 85
AAXJ Omega Ratio Rank: 88
AAXJ Calmar Ratio Rank: 84
AAXJ Martin Ratio Rank: 85

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.

VPL vs. AAXJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Pacific ETF (VPL) and iShares MSCI All Country Asia ex-Japan ETF (AAXJ). 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.

	VPL	AAXJ	Difference
Sharpe ratio Return per unit of total volatility	2.72	3.03	-0.31
Sortino ratio Return per unit of downside risk	3.55	3.88	-0.32
Omega ratio Gain probability vs. loss probability	1.49	1.55	-0.06
Calmar ratio Return relative to maximum drawdown	4.13	4.58	-0.45
Martin ratio Return relative to average drawdown	16.33	17.71	-1.38
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VPL vs. AAXJ - Sharpe Ratio Comparison

The current VPL Sharpe Ratio is 2.72, which is comparable to the AAXJ Sharpe Ratio of 3.03. The chart below compares the historical Sharpe Ratios of VPL and AAXJ, 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

	VPL	AAXJ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.72	3.03	-0.31
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.62	0.38	+0.24
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.63	0.53	+0.10
Sharpe Ratio (All Time) Calculated using the full available price history	0.34	0.29	+0.06

Drawdowns

VPL vs. AAXJ - Drawdown Comparison

The maximum VPL drawdown since its inception was -55.49%, which is greater than AAXJ's maximum drawdown of -49.37%. Use the drawdown chart below to compare losses from any high point for VPL and AAXJ.

Drawdown Indicators

	VPL	AAXJ	Difference
Max Drawdown Largest peak-to-trough decline	-55.49%	-49.37%	-6.12%
Max Drawdown (1Y) Largest decline over 1 year	-13.33%	-13.66%	+0.33%
Max Drawdown (3Y) Largest decline over 3 years	-16.35%	-19.74%	+3.39%
Max Drawdown (5Y) Largest decline over 5 years	-31.09%	-40.74%	+9.65%
Max Drawdown (10Y) Largest decline over 10 years	-33.90%	-44.52%	+10.62%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-11.64%	-14.03%	+2.39%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.37%	3.53%	-0.16%

Volatility

VPL vs. AAXJ - Volatility Comparison

The current volatility for Vanguard FTSE Pacific ETF (VPL) is 7.31%, while iShares MSCI All Country Asia ex-Japan ETF (AAXJ) has a volatility of 8.78%. This indicates that VPL experiences smaller price fluctuations and is considered to be less risky than AAXJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VPL	AAXJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.31%	8.78%	-1.47%
Volatility (6M) Calculated over the trailing 6-month period	16.71%	17.42%	-0.71%
Volatility (1Y) Calculated over the trailing 1-year period	19.58%	20.23%	-0.65%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.29%	19.94%	-2.65%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.30%	20.25%	-2.95%

VPL vs. AAXJ - Expense Ratio Comparison

VPL has a 0.08% expense ratio, which is lower than AAXJ's 0.68% expense ratio.

Dividends

VPL vs. AAXJ - Dividend Comparison

VPL's dividend yield for the trailing twelve months is around 2.72%, more than AAXJ's 1.36% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AAXJ iShares MSCI All Country Asia ex-Japan ETF	1.36%	1.81%	1.86%	1.95%	1.74%	2.21%	1.06%	1.83%	2.10%	1.99%	1.77%	2.44%
VPL Vanguard FTSE Pacific ETF	2.72%	4.01%	3.15%	3.12%	2.75%	3.19%	1.81%	2.84%	3.06%	2.57%	2.65%	2.43%

Frequently Asked Questions

Can I hold both VPL and AAXJ in my portfolio?

VPL and AAXJ have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VPL or AAXJ?

AAXJ has higher volatility (8.78%) compared to VPL (7.31%). In terms of maximum drawdown, VPL dropped -55.49% vs AAXJ's -49.37%.

Which ETF is better, VPL or AAXJ?

On 10-year performance, VPL leads with 10.87% vs 10.62% for AAXJ. On fees, VPL is cheaper at 0.08% per year. On volatility, VPL has been the lower-risk option at 7.31%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VPL or AAXJ?

Over the 10-year period, VPL has performed better with a 10.87% return vs 10.62%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VPL or AAXJ?

VPL is cheaper with a 0.08% expense ratio, compared with 0.68% for AAXJ.

Which ETF pays a higher dividend yield, VPL or AAXJ?

VPL has the higher dividend yield at 2.72%, compared with 1.36% for AAXJ.

What is the main difference between VPL and AAXJ?

VPL tracks FTSE Developed Asia Pacific Index, while AAXJ tracks MSCI All Country Asia ex Japan Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.08% for VPL and 0.68% for AAXJ.

Which has better risk-adjusted returns?

AAXJ currently has the higher Sharpe Ratio (3.03 vs 2.72), 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.