VEU vs VGSH
Vanguard FTSE All World Ex US ETF vs Vanguard Short Term Treasury ETF
Quick Verdict
VGSH has a lower expense ratio. VEU delivered stronger 1-year returns. VEU offers more diversification with 3,928 holdings.
Side-by-Side Comparison
| Metric | VEU | VGSH | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.03% | |
| AUM | $68.4B | $34.7B | |
| Dividend Yield | 2.55% | 3.85% | |
| Holdings | 3,928 | 94 | |
| YTD Return | +14.50% | +1.13% | |
| 1Y Return | +25.77% | +2.90% | |
| 3Y Return (annualized) | +20.75% | +4.38% | |
| 5Y Return (annualized) | +9.98% | +1.96% | |
| Volatility (annualized) | 17.7% | 1.4% | |
| Max Drawdown | -62.8% | -6.7% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 2, 2007 | Nov 19, 2009 |
VEU vs VGSH Performance
Vanguard FTSE All World Ex US ETF (VEU) is a ETF from Vanguard (US) and Vanguard Short Term Treasury ETF (VGSH) is a ETF from Vanguard (US). Over the past year VEU returned +25.77% while VGSH returned +2.90%. Year to date, VEU is up 14.50% versus a gain of 1.13% for VGSH.
Over three years, VEU compounded at +20.75% per year against +4.38% for VGSH; over five years the annualized figures are +9.98% and +1.96% respectively. Across the full 17-year window we track, VEU has the edge at +3.55% annualized vs +0.73%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEU has been the more volatile fund, with annualized monthly volatility of 17.7% compared with 1.4% for VGSH. 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 -62.8% for VEU and -6.7% for VGSH. 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 0.12. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VEU charges 0.04% per year while VGSH charges 0.03%. On a $10,000 position that is $4 vs $3 annually, a gap of $1 per year that compounds over a long holding period. On income, VEU currently yields 2.55% against 3.85% for VGSH.
Holdings Overlap
VEU and VGSH share 0 holdings out of 2837 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, VEU or VGSH?
VEU has an expense ratio of 0.04% while VGSH charges 0.03%. VGSH is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VEU or VGSH?
Over the past year VEU returned +25.77% vs +2.90% for VGSH, so VEU leads on 1-year performance. Over the longest common window we track (17 years), VEU annualized +3.55% vs +0.73% for VGSH. Past performance does not guarantee future results.
Which is riskier, VEU or VGSH?
VEU has been the more volatile fund at 17.7% annualized versus 1.4% for VGSH. Worst drawdown: VEU -62.8% vs VGSH -6.7%.
Should I hold both VEU and VGSH?
VEU and VGSH have a monthly-return correlation of 0.12, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VEU and VGSH?
VEU and VGSH share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2837 unique securities.
Which pays a higher dividend, VEU or VGSH?
VEU yields 2.55% while VGSH yields 3.85%, so VGSH currently pays the higher dividend yield.
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