VSGX vs. VEU

Last updated Jun 4, 2026

VSGX (Vanguard ESG International Stock ETF) and VEU (Vanguard FTSE All-World ex-US ETF) are both Foreign Large Cap Equities funds from Vanguard - VSGX tracks the FTSE Global All Cap ex US Choice Index. while VEU tracks the FTSE All-World ex US Index. Both are passively managed. Over the past 5 years, VSGX returned 7.81%/yr vs 8.67%/yr for VEU. With a 0.99 correlation, they move nearly in lockstep. VSGX charges 0.12%/yr vs 0.04%/yr for VEU.

Performance

VSGX vs. VEU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard ESG International Stock ETF (VSGX) and Vanguard FTSE All-World ex-US ETF (VEU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VSGX achieves a 15.83% return, which is significantly higher than VEU's 14.60% return.

VSGX

• 1D: -0.94%
• 1M: 6.54%
• YTD: 15.83%
• 6M: 18.55%
• 1Y: 33.27%
• 3Y*: 19.56%
• 5Y*: 7.81%
• 10Y*: —

VEU

• 1D: -0.98%
• 1M: 5.07%
• YTD: 14.60%
• 6M: 17.34%
• 1Y: 32.37%
• 3Y*: 19.62%
• 5Y*: 8.67%
• 10Y*: 9.94%

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

VSGX vs. VEU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
VSGX Vanguard ESG International Stock ETF	15.83%	30.77%	5.72%	15.62%	-18.61%	7.24%	13.01%	23.04%	-12.87%
VEU Vanguard FTSE All-World ex-US ETF	14.60%	32.35%	5.56%	15.84%	-15.58%	8.27%	11.10%	21.83%	-12.21%

Correlation

The correlation between VSGX and VEU is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.98
Correlation (5Y) Calculated over the trailing 5-year period	0.99
Correlation (All Time) Calculated using the full available price history since Sep 21, 2018	0.99

The correlation between VSGX and VEU has been stable across timeframes, ranging from 0.98 to 0.99 - a consistent structural relationship.

VSGX vs. VEU - Sectors Allocation Comparison

Sectors	VSGX	VEU
Financial Services	27.9%	23.3%
Technology	23.9%	18.5%
Industrials	9.8%	15.7%
Consumer Cyclical	9.5%	8.2%
Healthcare	9.4%	7.1%
Basic Materials	6.1%	7.1%
Consumer Defensive	5.1%	5.1%
Communication Services	4.5%	4.6%
Real Estate	3.2%	2.0%
Utilities	0.7%	3.2%
Energy	0.0%	5.2%

Return for Risk

VSGX vs. VEU — Risk / Return Rank

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

VSGX

VSGX Risk / Return Rank: 57
VSGX Sharpe Ratio Rank: 59
VSGX Sortino Ratio Rank: 58
VSGX Omega Ratio Rank: 60
VSGX Calmar Ratio Rank: 52
VSGX Martin Ratio Rank: 57

VEU

VEU Risk / Return Rank: 60
VEU Sharpe Ratio Rank: 62
VEU Sortino Ratio Rank: 61
VEU Omega Ratio Rank: 62
VEU Calmar Ratio Rank: 56
VEU Martin Ratio Rank: 61

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.

VSGX vs. VEU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard ESG International Stock ETF (VSGX) 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.

	VSGX	VEU	Difference
Sharpe ratio Return per unit of total volatility	2.04	2.13	-0.09
Sortino ratio Return per unit of downside risk	2.82	2.94	-0.11
Omega ratio Gain probability vs. loss probability	1.37	1.39	-0.02
Calmar ratio Return relative to maximum drawdown	2.60	2.85	-0.24
Martin ratio Return relative to average drawdown	10.13	11.06	-0.93
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VSGX vs. VEU - Sharpe Ratio Comparison

The current VSGX Sharpe Ratio is 2.04, which is comparable to the VEU Sharpe Ratio of 2.13. The chart below compares the historical Sharpe Ratios of VSGX 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

	VSGX	VEU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.04	2.13	-0.09
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.48	0.54	-0.06
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.58	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.51	0.25	+0.25

Drawdowns

VSGX vs. VEU - Drawdown Comparison

The maximum VSGX drawdown since its inception was -33.09%, smaller than the maximum VEU drawdown of -61.52%. Use the drawdown chart below to compare losses from any high point for VSGX and VEU.

Drawdown Indicators

	VSGX	VEU	Difference
Max Drawdown Largest peak-to-trough decline	-33.09%	-61.52%	+28.43%
Max Drawdown (1Y) Largest decline over 1 year	-12.84%	-11.43%	-1.41%
Max Drawdown (3Y) Largest decline over 3 years	-13.83%	-13.69%	-0.14%
Max Drawdown (5Y) Largest decline over 5 years	-32.14%	-29.31%	-2.83%
Max Drawdown (10Y) Largest decline over 10 years	—	-34.98%	—
Current Drawdown Current decline from peak	-0.94%	-0.98%	+0.04%
Average Drawdown Average peak-to-trough decline	-7.78%	-13.13%	+5.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.29%	2.93%	+0.36%

Volatility

VSGX vs. VEU - Volatility Comparison

Vanguard ESG International Stock ETF (VSGX) has a higher volatility of 6.06% compared to Vanguard FTSE All-World ex-US ETF (VEU) at 5.59%. This indicates that VSGX's price experiences larger fluctuations and is considered to be riskier than VEU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSGX	VEU	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.06%	5.59%	+0.47%
Volatility (6M) Calculated over the trailing 6-month period	14.12%	13.04%	+1.08%
Volatility (1Y) Calculated over the trailing 1-year period	16.38%	15.29%	+1.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.31%	16.07%	+0.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.05%	17.21%	+0.84%

VSGX vs. VEU - Expense Ratio Comparison

VSGX has a 0.12% 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

VSGX vs. VEU - Dividend Comparison

VSGX's dividend yield for the trailing twelve months is around 2.85%, more than VEU's 2.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VEU Vanguard FTSE All-World ex-US ETF	2.61%	3.09%	3.24%	3.32%	3.12%	3.08%	2.00%	3.10%	3.27%	2.66%	2.96%	2.95%
VSGX Vanguard ESG International Stock ETF	2.85%	3.23%	3.10%	2.77%	2.61%	2.49%	1.67%	2.28%	0.38%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VSGX and VEU in my portfolio?

With a correlation of 0.98, VSGX and VEU 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, VSGX or VEU?

VSGX has higher volatility (6.06%) compared to VEU (5.59%). In terms of maximum drawdown, VSGX dropped -33.09% vs VEU's -61.52%.

Which ETF is better, VSGX or VEU?

On 5-year performance, VEU leads with 8.67% vs 7.81% for VSGX. On fees, VEU is cheaper at 0.04% per year. On volatility, VEU has been the lower-risk option at 5.59%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VSGX or VEU?

Over the 5-year period, VEU has performed better with a 8.67% return vs 7.81%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VSGX or VEU?

VEU is cheaper with a 0.04% expense ratio, compared with 0.12% for VSGX.

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

VSGX has the higher dividend yield at 2.85%, compared with 2.61% for VEU.

What is the main difference between VSGX and VEU?

VSGX tracks FTSE Global All Cap ex US Choice Index., while VEU tracks FTSE All-World ex US Index. Their fees differ too: 0.12% for VSGX and 0.04% for VEU.

Which has better risk-adjusted returns?

VEU currently has the higher Sharpe Ratio (2.13 vs 2.04), 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.