VXUS vs. VEU

Last updated Jun 12, 2026

VXUS (Vanguard Total International Stock ETF) and VEU (Vanguard FTSE All-World ex-US ETF) are both exchange-traded funds - VXUS is a Global Equities fund tracking the FTSE Global All 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, VXUS returned 10.05%/yr vs 10.23%/yr for VEU. With a 0.99 correlation, they move nearly in lockstep. VXUS charges 0.05%/yr vs 0.04%/yr for VEU.

Performance

VXUS vs. VEU - Performance Comparison

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

Returns By Period

The year-to-date returns for both investments are quite close, with VXUS having a 13.24% return and VEU slightly higher at 13.63%. Both investments have delivered pretty close results over the past 10 years, with VXUS having a 10.05% annualized return and VEU not far ahead at 10.23%.

VXUS

• 1D: 3.33%
• 1M: 1.32%
• YTD: 13.24%
• 6M: 14.27%
• 1Y: 28.59%
• 3Y*: 18.58%
• 5Y*: 8.24%
• 10Y*: 10.05%

VEU

• 1D: 3.33%
• 1M: 1.64%
• YTD: 13.63%
• 6M: 14.67%
• 1Y: 29.07%
• 3Y*: 18.92%
• 5Y*: 8.48%
• 10Y*: 10.23%

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

VXUS vs. VEU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VXUS Vanguard Total International Stock ETF	13.24%	32.35%	5.08%	15.86%	-16.08%	8.98%	10.66%	21.75%	-14.43%	27.46%
VEU Vanguard FTSE All-World ex-US ETF	13.63%	32.35%	5.56%	15.84%	-15.58%	8.27%	11.10%	21.83%	-14.18%	27.40%

Correlation

The correlation between VXUS and VEU is 1.00 - 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	1.00
Correlation (3Y) Calculated over the trailing 3-year period	1.00
Correlation (5Y) Calculated over the trailing 5-year period	1.00
Correlation (10Y) Calculated over the trailing 10-year period	1.00
Correlation (All Time) Calculated using the full available price history since Jan 28, 2011	0.99

The correlation between VXUS and VEU has been stable across timeframes, ranging from 0.99 to 1.00 - a consistent structural relationship.

VXUS vs. VEU - Sectors Allocation Comparison

Sectors	VXUS	VEU
Financial Services	22.3%	23.3%
Technology	18.1%	18.5%
Industrials	16.1%	15.7%
Consumer Cyclical	8.4%	8.2%
Basic Materials	7.6%	7.1%
Healthcare	7.1%	7.1%
Energy	5.2%	5.2%
Consumer Defensive	5.0%	5.1%
Communication Services	4.4%	4.6%
Utilities	3.2%	3.2%
Real Estate	2.6%	2.0%

Return for Risk

VXUS vs. VEU — Risk / Return Rank

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

VXUS

VXUS Risk / Return Rank: 65
VXUS Sharpe Ratio Rank: 66
VXUS Sortino Ratio Rank: 65
VXUS Omega Ratio Rank: 67
VXUS Calmar Ratio Rank: 61
VXUS Martin Ratio Rank: 66

VEU

VEU Risk / Return Rank: 66
VEU Sharpe Ratio Rank: 67
VEU Sortino Ratio Rank: 66
VEU Omega Ratio Rank: 68
VEU Calmar Ratio Rank: 62
VEU Martin Ratio Rank: 65

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.

VXUS vs. VEU - Risk-Adjusted Trends Comparison

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

	VXUS	VEU	Difference
Sharpe ratio: Return per unit of total volatility	1.79	1.81	-0.02
Sortino ratio: Return per unit of downside risk	2.46	2.50	-0.04
Omega ratio: Gain probability vs. loss probability	1.33	1.33	0.00
Calmar ratio: Return relative to maximum drawdown	2.55	2.56	-0.01
Martin ratio: Return relative to average drawdown	9.77	9.76	+0.01

VXUS vs. VEU - Sharpe Ratio Comparison

The current VXUS Sharpe Ratio is 1.79, which is comparable to the VEU Sharpe Ratio of 1.81. The chart below compares the historical Sharpe Ratios of VXUS 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.

Drawdowns

VXUS vs. VEU - Drawdown Comparison

The maximum VXUS drawdown since its inception was -35.97%, smaller than the maximum VEU drawdown of -61.52%. Use the drawdown chart below to compare losses from any high point for VXUS and VEU.

Drawdown Indicators

	VXUS	VEU	Difference
Max Drawdown Largest peak-to-trough decline	-35.97%	-61.52%	+25.55%
Max Drawdown (1Y) Largest decline over 1 year	-11.27%	-11.43%	+0.16%
Max Drawdown (3Y) Largest decline over 3 years	-13.58%	-13.69%	+0.11%
Max Drawdown (5Y) Largest decline over 5 years	-29.44%	-29.31%	-0.13%
Max Drawdown (10Y) Largest decline over 10 years	-35.97%	-34.98%	-0.99%
Current Drawdown Current decline from peak	-1.86%	-1.81%	-0.05%
Average Drawdown Average peak-to-trough decline	-8.21%	-13.12%	+4.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.93%	2.99%	-0.06%

Volatility

VXUS vs. VEU - Volatility Comparison

Vanguard Total International Stock ETF (VXUS) and Vanguard FTSE All-World ex-US ETF (VEU) have volatilities of 6.78% and 6.83%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VXUS	VEU	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.78%	6.83%	-0.05%
Volatility (6M) Calculated over the trailing 6-month period	14.05%	14.09%	-0.04%
Volatility (1Y) Calculated over the trailing 1-year period	16.09%	16.17%	-0.08%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.21%	16.24%	-0.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.20%	17.26%	-0.06%

VXUS vs. VEU - Expense Ratio Comparison

VXUS has a 0.05% 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

VXUS vs. VEU - Dividend Comparison

VXUS's dividend yield for the trailing twelve months is around 2.68%, more than VEU's 2.63% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VEU Vanguard FTSE All-World ex-US ETF	2.63%	3.09%	3.24%	3.32%	3.12%	3.08%	2.00%	3.10%	3.27%	2.66%	2.96%	2.95%
VXUS Vanguard Total International Stock ETF	2.68%	3.18%	3.37%	3.24%	3.09%	3.10%	2.14%	3.06%	3.18%	2.73%	2.93%	2.83%

Frequently Asked Questions

Can I hold both VXUS and VEU in my portfolio?

With a correlation of 1.00, VXUS 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, VXUS or VEU?

VEU has higher volatility (6.83%) compared to VXUS (6.78%). In terms of maximum drawdown, VXUS dropped -35.97% vs VEU's -61.52%.

Which ETF is better, VXUS or VEU?

On 10-year performance, VEU leads with 10.23% vs 10.05% for VXUS. On fees, VEU is cheaper at 0.04% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VXUS or VEU?

Over the 10-year period, VEU has performed better with a 10.23% return vs 10.05%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VXUS or VEU?

VEU is cheaper with a 0.04% expense ratio, compared with 0.05% for VXUS.

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

VXUS has the higher dividend yield at 2.68%, compared with 2.63% for VEU.

What is the main difference between VXUS and VEU?

VXUS is categorized as Global Equities, while VEU is Foreign Large Cap Equities. VXUS tracks FTSE Global All Cap ex US Index, while VEU tracks FTSE All-World ex US Index. Their fees differ too: 0.05% for VXUS and 0.04% for VEU.

Which has better risk-adjusted returns?

VEU currently has the higher Sharpe Ratio (1.81 vs 1.78), 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.