VUG vs. AAXJ

Last updated Jun 14, 2026

VUG (Vanguard Growth ETF) and AAXJ (iShares MSCI All Country Asia ex-Japan ETF) are both exchange-traded funds - VUG is a Large Cap Growth Equities fund tracking the CRSP US Large Cap Growth Index, while AAXJ is a Asia Pacific Equities fund tracking the MSCI All Country Asia ex Japan Index. Both are passively managed. Over the past 10 years, VUG returned 17.90%/yr vs 10.34%/yr for AAXJ. A 0.70 correlation means they provide meaningful diversification when combined. VUG charges 0.03%/yr vs 0.68%/yr for AAXJ.

Performance

VUG vs. AAXJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Growth ETF (VUG) 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, VUG achieves a 4.99% return, which is significantly lower than AAXJ's 26.46% return. Over the past 10 years, VUG has outperformed AAXJ with an annualized return of 17.90%, while AAXJ has yielded a comparatively lower 10.34% annualized return.

VUG

• 1D: 0.18%
• 1M: -3.64%
• YTD: 4.99%
• 6M: 5.66%
• 1Y: 22.83%
• 3Y*: 23.38%
• 5Y*: 13.78%
• 10Y*: 17.90%

AAXJ

• 1D: 0.46%
• 1M: 0.61%
• YTD: 26.46%
• 6M: 29.76%
• 1Y: 48.69%
• 3Y*: 22.11%
• 5Y*: 6.41%
• 10Y*: 10.34%

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

VUG vs. AAXJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VUG Vanguard Growth ETF	4.99%	19.40%	32.69%	46.83%	-33.16%	27.35%	40.25%	37.03%	-3.32%	27.72%
AAXJ iShares MSCI All Country Asia ex-Japan ETF	26.46%	31.53%	10.41%	4.79%	-20.35%	-5.73%	23.35%	17.93%	-15.04%	41.76%

Correlation

The correlation between VUG and AAXJ is 0.70, 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	0.70
Correlation (3Y) Calculated over the trailing 3-year period	0.60
Correlation (5Y) Calculated over the trailing 5-year period	0.61
Correlation (10Y) Calculated over the trailing 10-year period	0.65
Correlation (All Time) Calculated using the full available price history since Aug 15, 2008	0.70

The correlation between VUG and AAXJ shifts across timeframes, from 0.60 (3 years) to 0.70 (1 year), reflecting how their relationship changes across market environments.

VUG vs. AAXJ - Sectors Allocation Comparison

Sectors	VUG	AAXJ
Technology	53.5%	49.4%
Communication Services	17.3%	5.9%
Consumer Cyclical	12.2%	8.9%
Healthcare	4.6%	2.6%
Financial Services	4.3%	15.8%
Industrials	3.6%	7.3%
Consumer Defensive	1.5%	2.0%
Real Estate	1.0%	1.4%
Utilities	0.9%	1.6%
Basic Materials	0.6%	3.1%
Energy	0.4%	2.2%

Return for Risk

VUG vs. AAXJ — Risk / Return Rank

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

VUG

VUG Risk / Return Rank: 36
VUG Sharpe Ratio Rank: 41
VUG Sortino Ratio Rank: 38
VUG Omega Ratio Rank: 40
VUG Calmar Ratio Rank: 30
VUG Martin Ratio Rank: 33

AAXJ

AAXJ Risk / Return Rank: 75
AAXJ Sharpe Ratio Rank: 76
AAXJ Sortino Ratio Rank: 70
AAXJ Omega Ratio Rank: 78
AAXJ Calmar Ratio Rank: 76
AAXJ Martin Ratio Rank: 76

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.

VUG vs. AAXJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Growth ETF (VUG) 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.

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.

	VUG	AAXJ	Difference
Sharpe ratio: Return per unit of total volatility	1.29	2.11	-0.82
Sortino ratio: Return per unit of downside risk	1.78	2.73	-0.95
Omega ratio: Gain probability vs. loss probability	1.23	1.40	-0.17
Calmar ratio: Return relative to maximum drawdown	1.29	3.41	-2.13
Martin ratio: Return relative to average drawdown	4.43	12.55	-8.12

VUG vs. AAXJ - Sharpe Ratio Comparison

The current VUG Sharpe Ratio is 1.29, which is lower than the AAXJ Sharpe Ratio of 2.11. The chart below compares the historical Sharpe Ratios of VUG 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.

Drawdowns

VUG vs. AAXJ - Drawdown Comparison

The maximum VUG drawdown since its inception was -50.68%, roughly equal to the maximum AAXJ drawdown of -49.37%. Use the drawdown chart below to compare losses from any high point for VUG and AAXJ.

Drawdown Indicators

	VUG	AAXJ	Difference
Max Drawdown Largest peak-to-trough decline	-50.68%	-49.37%	-1.31%
Max Drawdown (1Y) Largest decline over 1 year	-16.53%	-13.66%	-2.87%
Max Drawdown (3Y) Largest decline over 3 years	-22.85%	-19.74%	-3.11%
Max Drawdown (5Y) Largest decline over 5 years	-35.61%	-40.64%	+5.03%
Max Drawdown (10Y) Largest decline over 10 years	-35.61%	-44.52%	+8.91%
Current Drawdown Current decline from peak	-5.56%	-4.62%	-0.94%
Average Drawdown Average peak-to-trough decline	-7.09%	-14.01%	+6.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.79%	3.71%	+1.08%

Volatility

VUG vs. AAXJ - Volatility Comparison

The current volatility for Vanguard Growth ETF (VUG) is 5.73%, while iShares MSCI All Country Asia ex-Japan ETF (AAXJ) has a volatility of 11.46%. This indicates that VUG 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

	VUG	AAXJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.73%	11.46%	-5.73%
Volatility (6M) Calculated over the trailing 6-month period	13.00%	19.71%	-6.71%
Volatility (1Y) Calculated over the trailing 1-year period	16.46%	22.12%	-5.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.30%	20.32%	+1.98%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.48%	20.42%	+1.06%

VUG vs. AAXJ - Expense Ratio Comparison

VUG has a 0.03% expense ratio, which is lower than AAXJ's 0.68% expense ratio.

Dividends

VUG vs. AAXJ - Dividend Comparison

VUG's dividend yield for the trailing twelve months is around 0.39%, less than AAXJ's 1.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AAXJ iShares MSCI All Country Asia ex-Japan ETF	1.43%	1.81%	1.86%	1.95%	1.74%	2.21%	1.06%	1.83%	2.10%	1.99%	1.77%	2.44%
VUG Vanguard Growth ETF	0.39%	0.41%	0.47%	0.58%	0.70%	0.48%	0.66%	0.95%	1.32%	1.14%	1.39%	1.30%

Frequently Asked Questions

Can I hold both VUG and AAXJ in my portfolio?

VUG and AAXJ have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VUG or AAXJ?

AAXJ has higher volatility (11.46%) compared to VUG (5.73%). In terms of maximum drawdown, VUG dropped -50.68% vs AAXJ's -49.37%.

Which ETF is better, VUG or AAXJ?

On 10-year performance, VUG leads with 17.90% vs 10.34% for AAXJ. On fees, VUG is cheaper at 0.03% per year. On volatility, VUG has been the lower-risk option at 5.73%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VUG or AAXJ?

Over the 10-year period, VUG has performed better with a 17.90% return vs 10.34%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VUG or AAXJ?

VUG is cheaper with a 0.03% expense ratio, compared with 0.68% for AAXJ.

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

AAXJ has the higher dividend yield at 1.43%, compared with 0.39% for VUG.

What is the main difference between VUG and AAXJ?

VUG is categorized as Large Cap Growth Equities, while AAXJ is Asia Pacific Equities. VUG tracks CRSP US Large Cap Growth Index, while AAXJ tracks MSCI All Country Asia ex Japan Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for VUG and 0.68% for AAXJ.

Which has better risk-adjusted returns?

AAXJ currently has the higher Sharpe Ratio (2.11 vs 1.29), 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.