VSO.AX vs. VEU.AX

Last updated Jul 16, 2026

VSO.AX (Vanguard MSCI Australian Small Companies INDEX ETF) and VEU.AX (Vanguard All-World ex-US Shares Index ETF) are both exchange-traded funds - VSO.AX is a Australia Equities fund tracking the MSCI Australian Shares Small Cap Index, while VEU.AX is a Global Equities fund tracking the Vanguard All-World ex-US Shares Index Index. Both are passively managed. Over the past 10 years, VSO.AX returned 7.48%/yr vs 10.36%/yr for VEU.AX. A 0.51 correlation means they provide meaningful diversification when combined.

Performance

VSO.AX vs. VEU.AX - Performance Comparison

The chart below illustrates the hypothetical performance of a A$10,000 investment in Vanguard MSCI Australian Small Companies INDEX ETF (VSO.AX) and Vanguard All-World ex-US Shares Index ETF (VEU.AX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VSO.AX achieves a -6.04% return, which is significantly lower than VEU.AX's 8.18% return. Over the past 10 years, VSO.AX has underperformed VEU.AX with an annualized return of 7.48%, while VEU.AX has yielded a comparatively higher 10.36% annualized return.

VSO.AX

• 1D: 0.43%
• 1M: -4.53%
• 6M: -7.75%
• YTD: -6.04%
• 1Y: 6.63%
• 3Y*: 8.30%
• 5Y*: 4.24%
• 10Y*: 7.48%

VEU.AX

• 1D: -0.73%
• 1M: -1.21%
• 6M: 4.42%
• YTD: 8.18%
• 1Y: 18.44%
• 3Y*: 17.07%
• 5Y*: 10.68%
• 10Y*: 10.36%

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

VSO.AX vs. VEU.AX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VSO.AX Vanguard MSCI Australian Small Companies INDEX ETF	-6.04%	24.14%	7.38%	3.70%	-13.32%	21.77%	14.75%	21.67%	-8.38%	15.95%
VEU.AX Vanguard All-World ex-US Shares Index ETF	8.18%	23.17%	16.80%	14.76%	-8.44%	14.15%	2.08%	22.31%	-6.28%	15.86%

Correlation

The correlation between VSO.AX and VEU.AX is 0.61, 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	0.61
Correlation (3Y) Calculated over the trailing 3-year period	0.53
Correlation (5Y) Calculated over the trailing 5-year period	0.58
Correlation (10Y) Calculated over the trailing 10-year period	0.53
Correlation (All Time) Calculated using the full available price history since May 23, 2011	0.51

The correlation between VSO.AX and VEU.AX has been stable across timeframes, ranging from 0.51 to 0.61 - a consistent structural relationship.

Return for Risk

VSO.AX vs. VEU.AX — Risk / Return Rank

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

VSO.AX

VSO.AX Risk / Return Rank: 15
VSO.AX Sharpe Ratio Rank: 16
VSO.AX Sortino Ratio Rank: 15
VSO.AX Omega Ratio Rank: 15
VSO.AX Calmar Ratio Rank: 14
VSO.AX Martin Ratio Rank: 15

VEU.AX

VEU.AX Risk / Return Rank: 51
VEU.AX Sharpe Ratio Rank: 51
VEU.AX Sortino Ratio Rank: 52
VEU.AX Omega Ratio Rank: 57
VEU.AX Calmar Ratio Rank: 44
VEU.AX Martin Ratio Rank: 51

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.

VSO.AX vs. VEU.AX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard MSCI Australian Small Companies INDEX ETF (VSO.AX) and Vanguard All-World ex-US Shares Index ETF (VEU.AX). 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.

	VSO.AX	VEU.AX	Difference
Sharpe ratio: Return per unit of total volatility	0.39	1.46	-1.07
Sortino ratio: Return per unit of downside risk	0.66	2.10	-1.44
Omega ratio: Gain probability vs. loss probability	1.08	1.29	-0.20
Calmar ratio: Return relative to maximum drawdown	0.39	1.83	-1.44
Martin ratio: Return relative to average drawdown	1.00	7.08	-6.07

VSO.AX vs. VEU.AX - Sharpe Ratio Comparison

The current VSO.AX Sharpe Ratio is 0.39, which is lower than the VEU.AX Sharpe Ratio of 1.46. The chart below compares the historical Sharpe Ratios of VSO.AX and VEU.AX, 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

VSO.AX vs. VEU.AX - Drawdown Comparison

The maximum VSO.AX drawdown since its inception was -40.60%, which is greater than VEU.AX's maximum drawdown of -23.05%. Use the drawdown chart below to compare losses from any high point for VSO.AX and VEU.AX.

Drawdown Indicators

	VSO.AX	VEU.AX	Difference
Max Drawdown Largest peak-to-trough decline	-40.60%	-23.05%	-17.55%
Max Drawdown (1Y) Largest decline over 1 year	-16.81%	-9.87%	-6.94%
Max Drawdown (3Y) Largest decline over 3 years	-16.81%	-9.87%	-6.94%
Max Drawdown (5Y) Largest decline over 5 years	-23.62%	-18.46%	-5.16%
Max Drawdown (10Y) Largest decline over 10 years	-40.60%	-23.05%	-17.55%
Current Drawdown Current decline from peak	-9.45%	-2.39%	-7.06%
Average Drawdown Average peak-to-trough decline	-6.78%	-5.33%	-1.45%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.73%	2.60%	+4.13%

Volatility

VSO.AX vs. VEU.AX - Volatility Comparison

The current volatility for Vanguard MSCI Australian Small Companies INDEX ETF (VSO.AX) is 3.79%, while Vanguard All-World ex-US Shares Index ETF (VEU.AX) has a volatility of 3.99%. This indicates that VSO.AX experiences smaller price fluctuations and is considered to be less risky than VEU.AX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSO.AX	VEU.AX	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.79%	3.99%	-0.20%
Volatility (6M) Calculated over the trailing 6-month period	14.29%	11.17%	+3.12%
Volatility (1Y) Calculated over the trailing 1-year period	16.97%	12.40%	+4.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.31%	11.20%	+5.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.89%	11.70%	+5.19%

Dividends

VSO.AX vs. VEU.AX - Dividend Comparison

VSO.AX's dividend yield for the trailing twelve months is around 3.08%, more than VEU.AX's 2.65% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VEU.AX Vanguard All-World ex-US Shares Index ETF	2.65%	3.11%	3.69%	4.26%	3.33%	3.09%	2.32%	3.17%	1.63%	0.87%	1.05%	1.21%
VSO.AX Vanguard MSCI Australian Small Companies INDEX ETF	3.08%	6.86%	1.12%	1.48%	3.25%	3.55%	6.24%	2.96%	1.09%	2.57%	1.50%	1.08%

Frequently Asked Questions

Can I hold both VSO.AX and VEU.AX in my portfolio?

VSO.AX and VEU.AX have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

What is the main difference between VSO.AX and VEU.AX?

VSO.AX is categorized as Australia Equities, while VEU.AX is Global Equities. VSO.AX tracks MSCI Australian Shares Small Cap Index, while VEU.AX tracks Vanguard All-World ex-US Shares Index Index.