EDV vs VEU

EDV vs VEU
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Quick Verdict

VEU has a lower expense ratio. VEU delivered stronger 1-year returns. VEU offers more diversification with 3,928 holdings.

Lower Fees: VEUHigher Returns: VEUMore Diversified: VEU

Side-by-Side Comparison

MetricEDVVEUWinner
Expense Ratio0.05%0.04%
AUM$3.4B$68.4B
Dividend Yield5.42%2.55%
Holdings833,928
YTD Return-4.83%+14.85%
1Y Return-0.99%+27.33%
3Y Return (annualized)-4.19%+19.89%
5Y Return (annualized)-12.62%+9.44%
Volatility (annualized)21.8%17.7%
Max Drawdown-62.0%-62.8%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionDec 6, 2007Mar 2, 2007

EDV vs VEU Performance

Vanguard Extended Duration Treasury ETF (EDV) is a ETF from Vanguard (US) and Vanguard FTSE All World Ex US ETF (VEU) is a ETF from Vanguard (US). Over the past year EDV returned -0.99% while VEU returned +27.33%. Year to date, EDV is down 4.83% versus a gain of 14.85% for VEU.

Over three years, EDV compounded at -4.19% per year against +19.89% for VEU; over five years the annualized figures are -12.62% and +9.44% respectively. Across the full 19-year window we track, VEU has the edge at +3.56% annualized vs -1.43%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

EDV has been the more volatile fund, with annualized monthly volatility of 21.8% compared with 17.7% for VEU. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -62.0% for EDV and -62.8% for VEU. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at -0.08. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

EDV charges 0.05% per year while VEU charges 0.04%. On a $10,000 position that is $5 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, EDV currently yields 5.42% against 2.55% for VEU.

Holdings Overlap

0.0%overlap

EDV and VEU share 0 holdings out of 3734 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, EDV or VEU?

EDV has an expense ratio of 0.05% while VEU charges 0.04%. VEU is the cheaper option. On a $10,000 investment, that is $1 per year of difference.

Which performed better, EDV or VEU?

Over the past year EDV returned -0.99% vs +27.33% for VEU, so VEU leads on 1-year performance. Over the longest common window we track (19 years), EDV annualized -1.43% vs +3.56% for VEU. Past performance does not guarantee future results.

Which is riskier, EDV or VEU?

EDV has been the more volatile fund at 21.8% annualized versus 17.7% for VEU. Worst drawdown: EDV -62.0% vs VEU -62.8%.

Should I hold both EDV and VEU?

EDV and VEU have a monthly-return correlation of -0.08, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between EDV and VEU?

EDV and VEU share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3734 unique securities.

Which pays a higher dividend, EDV or VEU?

EDV yields 5.42% while VEU yields 2.55%, so EDV currently pays the higher dividend yield.

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