VEU vs VO
Vanguard FTSE All World Ex US ETF vs Vanguard Morningstar Mid-Cap ETF
Which is better, VEU or VO?
Large Cap Blend against Mid Cap Blend.
VO has a lower expense ratio. VEU led over 1Y, 3Y and 5Y, VO over 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 | VO |
|---|---|---|
| Expense Ratio | 0.04% | 0.03%Best |
| AUM | $68.4B | $106.6B |
| Dividend Yield | 2.48% | 1.30% |
| Holdings | 3,928 | 289 |
| YTD Return | +14.63%Best | +10.88% |
| 1Y Return | +22.08%Best | +11.90% |
| 3Y Return (annualized) | +20.78%Best | +17.22% |
| 5Y Return (annualized) | +9.82%Best | +7.74% |
| Volatility (annualized) | 17.7%Tie | 17.7%Tie |
| Max Drawdown | -62.8% | -60.3%Best |
| $10,000 over 5 years | $15,974Best | $14,517 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Mid Cap Blend |
| Inception | Mar 2, 2007 | Jan 26, 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 Sep 21, 2026 (19.5 years).
VEU vs VO 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 19.5 years both funds cover.
VEU vs VO Performance
Vanguard FTSE All World Ex US ETF (VEU) is an ETF from Vanguard (US) and Vanguard Morningstar Mid-Cap ETF (VO) is an ETF from Vanguard (US). Over the past year VEU returned +22.08% while VO returned +11.90%. Year to date, VEU is up 14.63% versus a gain of 10.88% for VO.
Over three years, VEU compounded at +20.78% per year against +17.22% for VO; over five years the annualized figures are +9.82% and +7.74% respectively. Across the full 20-year window we track, VO has the edge at +8.23% annualized vs +3.54%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEU and VO have been equally volatile, both at 17.7% annualized.
The deepest peak-to-trough decline in our data was -62.8% for VEU and -60.3% for VO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VEU charges 0.04% per year while VO 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 1.30% for VO.
Holdings Overlap
At least 1.8% of VO'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.
VO and VEU share little of their money.
6 positions in common, counted across the 3,645 positions we hold weights for in VEU and 283 in VO, against full books of 3,928 and 289.
You are not choosing between two funds in isolation.
Whichever of VEU and VO 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 VO?
VEU has an expense ratio of 0.04% while VO charges 0.03%. VO is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, VEU or VO?
Over the past year VEU returned +22.08% vs +11.90% for VO, so VEU leads on 1-year performance. Over the longest common window we track (20 years), VEU annualized +3.54% vs +8.23% for VO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VEU or VO?
VEU and VO have been equally volatile, both at 17.7% annualized. Worst drawdown: VEU -62.8% vs VO -60.3%.
Should I hold both VEU and VO?
VEU and VO have a monthly-return correlation of 0.86, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VEU and VO?
At least 1.8% of VO's money is in holdings VEU also owns. Our book for VEU is partial, so the real figure is this or higher. They hold 6 positions in common, counted across the 3,645 positions we hold weights for in VEU and 283 in VO.
Which pays a higher dividend, VEU or VO?
VEU yields 2.48% while VO yields 1.30%, so VEU currently pays the higher dividend yield.
Is VO better than VEU?
VO has a lower expense ratio. VEU led over 1Y, 3Y and 5Y, VO over the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.