VEU vs VGSH
Vanguard FTSE All World Ex US ETF vs Vanguard Short Term Treasury ETF
Which is better, VEU or VGSH?
Large Cap Blend against Short Term Government Bond.
VGSH 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 | VGSH |
|---|---|---|
| Expense Ratio | 0.04% | 0.03%Best |
| AUM | $68.4B | $34.7B |
| Dividend Yield | 2.48% | 3.82% |
| Holdings | 3,928 | 94 |
| YTD Return | +13.57%Best | +0.70% |
| 1Y Return | +23.03%Best | +1.92% |
| 3Y Return (annualized) | +19.74%Best | +4.16% |
| 5Y Return (annualized) | +9.09%Best | +1.86% |
| Volatility (annualized) | 15.5% | 1.4%Best |
| Max Drawdown | -39.1% | -6.7%Best |
| $10,000 over 5 years | $15,450Best | $10,965 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Blend | Short Term Government Bond |
| Inception | Mar 2, 2007 | Nov 19, 2009 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 23, 2009 to Sep 10, 2026 (16.8 years).
VEU vs VGSH 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
VEU vs VGSH Performance
Vanguard FTSE All World Ex US ETF (VEU) is an ETF from Vanguard (US) and Vanguard Short Term Treasury ETF (VGSH) is an ETF from Vanguard (US). Over the past year VEU returned +23.03% while VGSH returned +1.92%. Year to date, VEU is up 13.57% versus a gain of 0.70% for VGSH.
Over three years, VEU compounded at +19.74% per year against +4.16% for VGSH; over five years the annualized figures are +9.09% and +1.86% respectively. Across the full 17-year window we track, VEU has the edge at +4.88% annualized vs +0.71%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEU has been the more volatile fund, with annualized monthly volatility of 15.5% 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 -39.1% for VEU and -6.7% for VGSH. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.12. They move largely independently of each other.
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 2.48% against 3.82% for VGSH.
Holdings Overlap
We hold position weights for 3,655 holdings in VEU and 16 in VGSH, totalling 94.0% and 15.5% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 3,655 positions we hold weights for in VEU and 16 in VGSH, against full books of 3,928 and 94.
You are not choosing between two funds in isolation.
Whichever of VEU and VGSH 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 VGSH?
VEU has an expense ratio of 0.04% while VGSH charges 0.03%. VGSH is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, VEU or VGSH?
Over the past year VEU returned +23.03% vs +1.92% for VGSH, so VEU leads on 1-year performance. Over the longest common window we track (17 years), VEU annualized +4.88% vs +0.71% for VGSH. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VEU or VGSH?
VEU has been the more volatile fund at 15.5% annualized versus 1.4% for VGSH. Worst drawdown: VEU -39.1% vs VGSH -6.7%.
Should I hold both VEU and VGSH?
VEU and VGSH have a monthly-return correlation of 0.12, 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 VGSH?
VEU yields 2.48% while VGSH yields 3.82%, so VGSH currently pays the higher dividend yield.
Is VGSH better than VEU?
VGSH 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.