VTMGX vs. VEA

Last updated Jun 24, 2026

VTMGX (Vanguard Developed Markets Index Fund Admiral Shares) and VEA (Vanguard FTSE Developed Markets ETF) are both Foreign Large Cap Equities funds from Vanguard tracking the FTSE Developed All Cap ex US Index. Both are passively managed. Over the past 10 years, VTMGX returned 10.99%/yr vs 10.72%/yr for VEA. With a 0.98 correlation, they move nearly in lockstep. VTMGX charges 0.07%/yr vs 0.03%/yr for VEA.

Performance

VTMGX vs. VEA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Developed Markets Index Fund Admiral Shares (VTMGX) and Vanguard FTSE Developed Markets ETF (VEA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTMGX achieves a 16.54% return, which is significantly higher than VEA's 13.11% return. Both investments have delivered pretty close results over the past 10 years, with VTMGX having a 10.99% annualized return and VEA not far behind at 10.72%.

VTMGX

• 1D: 0.04%
• 1M: 3.10%
• YTD: 16.54%
• 6M: 16.37%
• 1Y: 34.33%
• 3Y*: 20.61%
• 5Y*: 10.34%
• 10Y*: 10.99%

VEA

• 1D: -3.07%
• 1M: 0.11%
• YTD: 13.11%
• 6M: 12.98%
• 1Y: 30.28%
• 3Y*: 19.47%
• 5Y*: 9.50%
• 10Y*: 10.72%

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

VTMGX vs. VEA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTMGX Vanguard Developed Markets Index Fund Admiral Shares	16.54%	35.17%	3.03%	17.65%	-15.33%	11.39%	10.25%	22.04%	-14.48%	26.39%
VEA Vanguard FTSE Developed Markets ETF	13.11%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	26.42%

Correlation

The correlation between VTMGX and VEA is 0.95, 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	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.98
Correlation (All Time) Calculated using the full available price history since Jul 26, 2007	0.98

The correlation between VTMGX and VEA has been stable across timeframes, ranging from 0.95 to 0.98 - a consistent structural relationship.

VTMGX vs. VEA - Sectors Allocation Comparison

Sectors	VTMGX	VEA
Financial Services	23.3%	22.3%
Industrials	19.2%	17.5%
Technology	13.8%	16.6%
Healthcare	8.2%	7.6%
Basic Materials	7.5%	7.5%
Consumer Cyclical	7.5%	7.4%
Consumer Defensive	5.6%	5.5%
Energy	5.4%	4.7%
Communication Services	3.4%	3.2%
Utilities	3.3%	3.0%
Real Estate	2.7%	2.5%

Return for Risk

VTMGX vs. VEA — Risk / Return Rank

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

VTMGX

VTMGX Risk / Return Rank: 65
VTMGX Sharpe Ratio Rank: 69
VTMGX Sortino Ratio Rank: 60
VTMGX Omega Ratio Rank: 64
VTMGX Calmar Ratio Rank: 69
VTMGX Martin Ratio Rank: 63

VEA

VEA Risk / Return Rank: 55
VEA Sharpe Ratio Rank: 55
VEA Sortino Ratio Rank: 53
VEA Omega Ratio Rank: 55
VEA Calmar Ratio Rank: 55
VEA Martin Ratio Rank: 59

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.

VTMGX vs. VEA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Developed Markets Index Fund Admiral Shares (VTMGX) and Vanguard FTSE Developed Markets ETF (VEA). 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.

	VTMGX	VEA	Difference
Sharpe ratio: Return per unit of total volatility	2.22	1.81	+0.41
Sortino ratio: Return per unit of downside risk	2.98	2.48	+0.50
Omega ratio: Gain probability vs. loss probability	1.41	1.33	+0.07
Calmar ratio: Return relative to maximum drawdown	3.03	2.62	+0.42
Martin ratio: Return relative to average drawdown	11.62	10.06	+1.56

VTMGX vs. VEA - Sharpe Ratio Comparison

The current VTMGX Sharpe Ratio is 2.22, which is comparable to the VEA Sharpe Ratio of 1.81. The chart below compares the historical Sharpe Ratios of VTMGX and VEA, 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

VTMGX vs. VEA - Drawdown Comparison

The maximum VTMGX drawdown since its inception was -60.58%, roughly equal to the maximum VEA drawdown of -60.68%. Use the drawdown chart below to compare losses from any high point for VTMGX and VEA.

Drawdown Indicators

	VTMGX	VEA	Difference
Max Drawdown Largest peak-to-trough decline	-60.58%	-60.68%	+0.10%
Max Drawdown (1Y) Largest decline over 1 year	-11.67%	-11.63%	-0.04%
Max Drawdown (3Y) Largest decline over 3 years	-13.18%	-13.45%	+0.27%
Max Drawdown (5Y) Largest decline over 5 years	-29.71%	-29.71%	0.00%
Max Drawdown (10Y) Largest decline over 10 years	-35.68%	-35.73%	+0.05%
Current Drawdown Current decline from peak	0.00%	-3.07%	+3.07%
Average Drawdown Average peak-to-trough decline	-14.63%	-13.26%	-1.37%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.04%	3.02%	+0.02%

Volatility

VTMGX vs. VEA - Volatility Comparison

The current volatility for Vanguard Developed Markets Index Fund Admiral Shares (VTMGX) is 6.17%, while Vanguard FTSE Developed Markets ETF (VEA) has a volatility of 7.09%. This indicates that VTMGX experiences smaller price fluctuations and is considered to be less risky than VEA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTMGX	VEA	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.17%	7.09%	-0.92%
Volatility (6M) Calculated over the trailing 6-month period	13.63%	14.74%	-1.11%
Volatility (1Y) Calculated over the trailing 1-year period	15.96%	16.79%	-0.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.04%	16.76%	-0.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.56%	17.21%	-0.65%

VTMGX vs. VEA - Expense Ratio Comparison

VTMGX has a 0.07% expense ratio, which is higher than VEA's 0.03% 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

VTMGX vs. VEA - Dividend Comparison

VTMGX's dividend yield for the trailing twelve months is around 2.49%, less than VEA's 2.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VEA Vanguard FTSE Developed Markets ETF	2.58%	3.22%	3.35%	3.15%	2.91%	3.16%	2.04%	3.04%	3.35%	2.77%	3.05%	2.92%
VTMGX Vanguard Developed Markets Index Fund Admiral Shares	2.49%	3.20%	3.34%	3.14%	2.88%	3.14%	2.02%	3.03%	3.33%	2.77%	3.06%	2.91%

Frequently Asked Questions

Can I hold both VTMGX and VEA in my portfolio?

With a correlation of 0.95, VTMGX and VEA 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, VTMGX or VEA?

VEA has higher volatility (7.09%) compared to VTMGX (6.17%). In terms of maximum drawdown, VTMGX dropped -60.58% vs VEA's -60.68%.

Which has better risk-adjusted returns?

VTMGX currently has the higher Sharpe Ratio (2.22 vs 1.81), 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.