VEU vs VNQ
Vanguard FTSE All World Ex US ETF vs Vanguard Real Estate ETF
Which is better, VEU or VNQ?
Large Cap Blend against Mid Cap Blend.
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 | VNQ |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.13% |
| AUM | $70.4B | $38.1B |
| Dividend Yield | 2.48% | 3.60% |
| Holdings | 3,895 | 144 |
| YTD Return | +11.83%Best | +5.32% |
| 1Y Return | +18.19%Best | +5.39% |
| 3Y Return (annualized) | +20.13%Best | +10.55% |
| 5Y Return (annualized) | +9.57%Best | +1.33% |
| Volatility (annualized) | 17.7%Best | 22.0% |
| Max Drawdown | -62.8%Best | -74.0% |
| $10,000 over 5 years | $15,793Best | $10,683 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Mid Cap Blend |
| Inception | Mar 2, 2007 | Sep 23, 2004 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Mar 8, 2007 to Oct 9, 2026 (19.6 years).
VEU vs VNQ 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 19.6 years both funds cover.
VEU vs VNQ Performance
Vanguard FTSE All World Ex US ETF (VEU) is an ETF from Vanguard (US) and Vanguard Real Estate ETF (VNQ) is an ETF from Vanguard (US). Over the past year VEU returned +18.19% while VNQ returned +5.39%. Year to date, VEU is up 11.83% versus a gain of 5.32% for VNQ.
Over three years, VEU compounded at +20.13% per year against +10.55% for VNQ; over five years the annualized figures are +9.57% and +1.33% respectively. Across the full 20-year window we track, VEU has the edge at +3.40% annualized vs +1.79%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 22.0% 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 -62.8% for VEU and -74.0% for VNQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VEU charges 0.04% per year while VNQ charges 0.13%. On a $10,000 position that is $4 vs $13 annually, a gap of $9 per year that compounds over a long holding period. On income, VEU currently yields 2.48% against 3.60% for VNQ.
Holdings Overlap
At least 0.3% of VNQ's money is in holdings VEU also owns.
Stated as a floor: for VEU, our book for it covers 94.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 3,645 positions we hold weights for in VEU and 139 in VNQ, against full books of 3,895 and 144.
What only one of them owns
Measured across the 3,645 and 139 positions we hold weights for.
VEU holds 30 positions VNQ does not, 2.6% of the fund.
Largest: SHEL 0.63%, SAN 0.50%, CNH 0.49%, PDD 0.17%, JD 0.10%
Top Shared Holdings
| Stock | Weight in VEU | Weight in VNQ | Difference |
|---|---|---|---|
| MKLMarkel Group Inc | 0.57% | 0.33% | 0.24% |
You are not choosing between two funds in isolation.
Whichever of VEU and VNQ 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 VNQ?
VEU has an expense ratio of 0.04% while VNQ charges 0.13%. VEU is the cheaper option, by $9 a year on a $10,000 investment.
Which performed better, VEU or VNQ?
Over the past year VEU returned +18.19% vs +5.39% for VNQ, so VEU leads on 1-year performance. Over the longest common window we track (20 years), VEU annualized +3.40% vs +1.79% for VNQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VEU or VNQ?
VNQ has been the more volatile fund at 22.0% annualized versus 17.7% for VEU. Worst drawdown: VEU -62.8% vs VNQ -74.0%.
Should I hold both VEU and VNQ?
VEU and VNQ have a monthly-return correlation of 0.71, 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 VNQ?
VEU yields 2.48% while VNQ yields 3.60%, so VNQ currently pays the higher dividend yield.
Is VNQ 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.