VEU vs VGHAX
Vanguard FTSE All World Ex US ETF vs Vanguard Health Care Fund Admiral Shares
Which is better, VEU or VGHAX?
Large Cap Blend against Large Cap Growth.
VEU has a lower expense ratio. VEU led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VEU | VGHAX |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.27% |
| AUM | $70.4B | $32.8B |
| Dividend Yield | 2.48% | 6.15% |
| Holdings | 3,895 | 109 |
| YTD Price Return | +10.88%Best | -0.55% |
| 1Y Price Return | +15.19%Best | +5.60% |
| 3Y Price Return (annualized) | +16.66%Best | -0.26% |
| 5Y Price Return (annualized) | +6.29%Best | -2.24% |
| Volatility (annualized) | 15.3%Tie | 15.3%Tie |
| Max Drawdown | -30.8%Best | -32.7% |
| $10,000 over 5 years | $13,566Best | $8,929 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Mar 2, 2007 | Nov 12, 2001 |
Not shown on this pair: Top 10 Weight.
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for VGHAX. Both funds are measured the same way, so the comparison holds. VEU yields 2.48% and VGHAX 6.15% on top.
Volatility and max drawdown are measured over the window both funds cover: Oct 12, 2021 to Oct 8, 2026 (5 years).
VEU vs VGHAX growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5 years both funds cover. Prices exclude distributions, on both funds alike.
VEU vs VGHAX Performance
Vanguard FTSE All World Ex US ETF (VEU) is an ETF from Vanguard (US) and Vanguard Health Care Fund Admiral Shares (VGHAX) is a mutual fund from Vanguard (US). Over the past year VEU returned +15.19% while VGHAX returned +5.60%. Year to date, VEU is up 10.88% versus a loss of 0.55% for VGHAX.
Over three years, VEU compounded at +16.66% per year against -0.26% for VGHAX; over five years the annualized figures are +6.29% and -2.24% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEU and VGHAX have been equally volatile, both at 15.3% annualized.
The deepest peak-to-trough decline in our data was -30.8% for VEU and -32.7% for VGHAX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.59. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VEU charges 0.04% per year while VGHAX charges 0.27%. On a $10,000 position that is $4 vs $27 annually, a gap of $23 per year that compounds over a long holding period. On income, VEU currently yields 2.48% against 6.15% for VGHAX.
Structure and taxes
VGHAX is a mutual fund and VEU is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
We hold position weights for 3,645 holdings in VEU and 77 in VGHAX, totalling 94.2% and 92.5% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 14 positions appear in both.
14 positions in common, counted across the 3,645 positions we hold weights for in VEU and 77 in VGHAX, against full books of 3,895 and 109.
Top Shared Holdings
| Stock | Weight in VEU | Weight in VGHAX | Difference |
|---|---|---|---|
| AZN:LNAstraZeneca PLC | 0.62% | 4.85% | 4.23% |
| GSK:LNGSK plc | 0.25% | 2.97% | 2.72% |
| NOVN:SMNovartis Ag Ordinary Shares | 0.71% | 1.77% | 1.06% |
| ARGX:ASArgenx | 0.13% | 2.14% | 2.01% |
| UCB:BRUcb Sa | 0.08% | 1.72% | 1.64% |
| GALD:SMGalderma | 0.10% | 1.30% | 1.20% |
| 4519:JPChugai Pharmaceutical Co. Ltd. Com Stk | 0.07% | 0.98% | 0.91% |
| 4568:JPDaiichi Sankyo Co. Ltd. Com Stk | 0.07% | 0.94% | 0.87% |
| 4578:JPOtsuka Holdings Co., Ltd. Com Stk | 0.08% | 0.93% | 0.85% |
| QGEN:ASQiagen Nv Ord | 0.02% | 0.66% | 0.64% |
You are not choosing between two funds in isolation.
Whichever of VEU and VGHAX you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VEU or VGHAX?
VEU has an expense ratio of 0.04% while VGHAX charges 0.27%. VEU is the cheaper option, by $23 a year on a $10,000 investment.
Which performed better, VEU or VGHAX?
Over the past year VEU returned +15.19% vs +5.60% for VGHAX, so VEU leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VEU or VGHAX?
VEU and VGHAX have been equally volatile, both at 15.3% annualized. Worst drawdown: VEU -30.8% vs VGHAX -32.7%.
Should I hold both VEU and VGHAX?
VEU and VGHAX have a monthly-return correlation of 0.59, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VEU or VGHAX?
VEU yields 2.48% while VGHAX yields 6.15%, so VGHAX currently pays the higher dividend yield.
Is it better to hold VGHAX or VEU in a taxable account?
VEU is an ETF and VGHAX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VGHAX better than VEU?
VEU has a lower expense ratio. VEU led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.