EDV vs VEU

Quick Verdict

VEU has a lower expense ratio. VEU delivered stronger 1-year returns. VEU offers more diversification with 2818 holdings.

Lower Fees: VEUHigher Returns: VEUMore Diversified: VEU

Side-by-Side Comparison

MetricEDVVEUWinner
Expense Ratio0.05%0.04%
AUM$3.5B$67.3B
Dividend Yield4.83%2.54%
Holdings833,921
YTD Return-5.62%+14.40%
1Y Return-4.94%+27.97%
3Y Return (annualized)-4.55%+19.79%
5Y Return (annualized)-12.40%+9.31%
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 -4.94% while VEU returned +27.97%. Year to date, EDV is down 5.62% versus a gain of 14.40% for VEU.

Over three years, EDV compounded at -4.55% per year against +19.79% for VEU; over five years the annualized figures are -12.40% and +9.31% respectively. Across the full 19-year window we track, VEU has the edge at +3.55% annualized vs -1.48%. 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 -0.09. 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 4.83% against 2.54% for VEU.

Holdings Overlap

0.0%overlap

EDV and VEU share 0 holdings out of 2894 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 -4.94% vs +27.97% for VEU, so VEU leads on 1-year performance. Over the longest common window we track (19 years), EDV annualized -1.48% vs +3.55% 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 -0.09, 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 2894 unique securities.

Which pays a higher dividend, EDV or VEU?

EDV yields 4.83% while VEU yields 2.54%, so EDV currently pays the higher dividend yield.

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