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VSS vs. VEU
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VSS vs. VEU

Last updated Jun 23, 2026

VSS (Vanguard FTSE All-World ex-US Small-Cap ETF) and VEU (Vanguard FTSE All-World ex-US ETF) are both exchange-traded funds - VSS is a Foreign Small & Mid Cap Equities fund tracking the FTSE Global Small Cap ex US 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, VSS returned 8.76%/yr vs 10.74%/yr for VEU. Their correlation of 0.95 suggests significant overlap in exposure. VSS charges 0.07%/yr vs 0.04%/yr for VEU.

Performance

VSS vs. VEU - Performance Comparison

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

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Returns By Period

In the year-to-date period, VSS achieves a 10.76% return, which is significantly lower than VEU's 16.58% return. Over the past 10 years, VSS has underperformed VEU with an annualized return of 8.76%, while VEU has yielded a comparatively higher 10.74% annualized return.

VSS

1D
0.22%
1M
-0.37%
YTD
10.76%
6M
11.06%
1Y
26.93%
3Y*
17.08%
5Y*
6.23%
10Y*
8.76%

VEU

1D
0.37%
1M
3.87%
YTD
16.58%
6M
17.12%
1Y
35.21%
3Y*
20.50%
5Y*
9.48%
10Y*
10.74%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VSS vs. VEU - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VSS
Vanguard FTSE All-World ex-US Small-Cap ETF		10.76%29.61%2.94%15.52%-21.48%13.05%11.81%21.36%-18.48%30.61%
VEU
Vanguard FTSE All-World ex-US ETF		16.58%32.35%5.56%15.84%-15.58%8.27%11.10%21.83%-14.18%27.40%

Correlation

The correlation between VSS and VEU is 0.93, 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

0.93

Correlation (3Y)
Calculated over the trailing 3-year period

0.94

Correlation (5Y)
Calculated over the trailing 5-year period

0.95

Correlation (10Y)
Calculated over the trailing 10-year period

0.95

Correlation (All Time)
Calculated using the full available price history since Apr 6, 2009

0.95

The correlation between VSS and VEU has been stable across timeframes, ranging from 0.93 to 0.95 - a consistent structural relationship.

VSS vs. VEU - Sectors Allocation Comparison

Sectors
VSS
VEU

Industrials

18.7%
15.0%

Technology

14.5%
21.6%

Basic Materials

12.2%
7.1%

Financial Services

10.1%
22.6%

Consumer Cyclical

9.1%
8.0%

Real Estate

7.1%
1.9%

Healthcare

6.0%
6.7%

Energy

4.4%
4.7%

Consumer Defensive

3.5%
4.9%

Utilities

2.5%
3.0%

Communication Services

2.3%
4.5%

Industrials

VSS
18.7%
VEU
15.0%

Technology

VSS
14.5%
VEU
21.6%

Basic Materials

VSS
12.2%
VEU
7.1%

Financial Services

VSS
10.1%
VEU
22.6%

Consumer Cyclical

VSS
9.1%
VEU
8.0%

Real Estate

VSS
7.1%
VEU
1.9%

Healthcare

VSS
6.0%
VEU
6.7%

Energy

VSS
4.4%
VEU
4.7%

Consumer Defensive

VSS
3.5%
VEU
4.9%

Utilities

VSS
2.5%
VEU
3.0%

Communication Services

VSS
2.3%
VEU
4.5%

Compare stocks, funds, or ETFs

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Vanguard FTSE All-World ex-US Small-Cap ETF

Vanguard FTSE All-World ex-US ETF

Often compared with VSS:
VSS vs. AVDVVSS vs. VXUSVSS vs. SCHCVSS vs. SCZVSS vs. VWOVSS vs. VOOVSS vs. VBR
Often compared with VEU:
VEU vs. VXUSVEU vs. VEAVEU vs. VOOVEU vs. VGKVEU vs. SPYVEU vs. ACWXVEU vs. VTI

Return for Risk

VSS vs. VEU — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VSS
VSS Risk / Return Rank: 5151
Overall Rank
VSS Sharpe Ratio Rank: 5353
Sharpe Ratio Rank
VSS Sortino Ratio Rank: 5050
Sortino Ratio Rank
VSS Omega Ratio Rank: 5353
Omega Ratio Rank
VSS Calmar Ratio Rank: 4848
Calmar Ratio Rank
VSS Martin Ratio Rank: 5252
Martin Ratio Rank
VEU
VEU Risk / Return Rank: 6868
Overall Rank
VEU Sharpe Ratio Rank: 7070
Sharpe Ratio Rank
VEU Sortino Ratio Rank: 6868
Sortino Ratio Rank
VEU Omega Ratio Rank: 7171
Omega Ratio Rank
VEU Calmar Ratio Rank: 6464
Calmar Ratio Rank
VEU Martin Ratio Rank: 6767
Martin Ratio Rank
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.

VSS vs. VEU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) 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.

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.

VSSVEUDifference
Sharpe ratioReturn per unit of total volatility
1.74
2.19

-0.46

Sortino ratioReturn per unit of downside risk
2.38
2.98

-0.60

Omega ratioGain probability vs. loss probability

1.32

1.40

-0.08

Calmar ratioReturn relative to maximum drawdown

2.33

3.10

-0.77

Martin ratioReturn relative to average drawdown

8.70

11.87

-3.18

VSS vs. VEU - Sharpe Ratio Comparison

The current VSS Sharpe Ratio is 1.74, which is comparable to the VEU Sharpe Ratio of 2.19. The chart below compares the historical Sharpe Ratios of VSS 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.

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Drawdowns

VSS vs. VEU - Drawdown Comparison

The maximum VSS drawdown since its inception was -43.51%, smaller than the maximum VEU drawdown of -61.52%. Use the drawdown chart below to compare losses from any high point for VSS and VEU.

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Drawdown Indicators

VSSVEUDifference

Max Drawdown

Largest peak-to-trough decline

-43.51%

-61.52%

+18.01%

Max Drawdown (1Y)

Largest decline over 1 year

-11.62%

-11.43%

-0.19%

Max Drawdown (3Y)

Largest decline over 3 years

-15.73%

-13.69%

-2.04%

Max Drawdown (5Y)

Largest decline over 5 years

-33.93%

-29.14%

-4.79%

Max Drawdown (10Y)

Largest decline over 10 years

-43.51%

-34.98%

-8.53%

Current Drawdown

Current decline from peak

-2.41%

0.00%

-2.41%

Average Drawdown

Average peak-to-trough decline

-9.62%

-13.10%

+3.48%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.10%

2.97%

+0.13%

Volatility

VSS vs. VEU - Volatility Comparison

The current volatility for Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) is 5.97%, while Vanguard FTSE All-World ex-US ETF (VEU) has a volatility of 6.30%. This indicates that VSS 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.

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Volatility by Period

VSSVEUDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.97%

6.30%

-0.33%

Volatility (6M)

Calculated over the trailing 6-month period

13.61%

14.12%

-0.51%

Volatility (1Y)

Calculated over the trailing 1-year period

15.59%

16.16%

-0.57%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

16.59%

16.24%

+0.35%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

17.28%

17.23%

+0.05%

VSS vs. VEU - Expense Ratio Comparison

VSS has a 0.07% 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

VSS vs. VEU - Dividend Comparison

VSS's dividend yield for the trailing twelve months is around 3.15%, more than VEU's 2.48% yield.

PositionTTM20252024202320222021202020192018201720162015
VEU
Vanguard FTSE All-World ex-US ETF		2.48%3.09%3.24%3.32%3.12%3.08%2.00%3.10%3.27%2.66%2.96%2.95%
VSS
Vanguard FTSE All-World ex-US Small-Cap ETF		3.15%3.39%3.44%3.14%2.30%2.74%1.90%3.25%2.80%2.83%2.93%2.66%

Frequently Asked Questions

With a correlation of 0.93, VSS 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.

VEU has higher volatility (6.30%) compared to VSS (5.97%). In terms of maximum drawdown, VSS dropped -43.51% vs VEU's -61.52%.

On 10-year performance, VEU leads with 10.74% vs 8.76% for VSS. On fees, VEU is cheaper at 0.04% per year. On volatility, VSS has been the lower-risk option at 5.97%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VEU has performed better with a 10.74% return vs 8.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VEU is cheaper with a 0.04% expense ratio, compared with 0.07% for VSS.

VSS has the higher dividend yield at 3.15%, compared with 2.48% for VEU.

VSS is categorized as Foreign Small & Mid Cap Equities, while VEU is Foreign Large Cap Equities. VSS tracks FTSE Global Small Cap ex US Index, while VEU tracks FTSE All-World ex US Index. Their fees differ too: 0.07% for VSS and 0.04% for VEU.

VEU currently has the higher Sharpe Ratio (2.19 vs 1.74), 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.

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