VEU vs VOE

Quick Verdict

VEU has a lower expense ratio. VEU delivered stronger 1-year returns. VEU offers more diversification with 2818 holdings.

Lower Fees: VEUHigher Returns: VEUMore Diversified: VEU

Side-by-Side Comparison

MetricVEUVOEWinner
Expense Ratio0.04%0.05%
AUM$67.3B$22.9B
Dividend Yield2.54%2.31%
Holdings3,921177
YTD Return+15.47%+18.67%
1Y Return+26.85%+25.06%
3Y Return (annualized)+20.12%+17.05%
5Y Return (annualized)+9.50%+10.16%
Volatility (annualized)17.7%17.6%
Max Drawdown-62.8%-63.4%
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityEquity
InceptionMar 2, 2007Aug 17, 2006

VEU vs VOE Performance

Vanguard FTSE All World Ex US ETF (VEU) is a ETF from Vanguard (US) and Vanguard Mid-Cap Value ETF (VOE) is a ETF from Vanguard (US). Over the past year VEU returned +26.85% while VOE returned +25.06%. Year to date, VEU is up 15.47% versus a gain of 18.67% for VOE.

Over three years, VEU compounded at +20.12% per year against +17.05% for VOE; over five years the annualized figures are +9.50% and +10.16% respectively. Across the full 19-year window we track, VOE has the edge at +8.02% annualized vs +3.59%. 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 17.6% for VOE. 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 -63.4% for VOE. 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 0.85. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

VEU charges 0.04% per year while VOE charges 0.05%. On a $10,000 position that is $4 vs $5 annually, a gap of $1 per year that compounds over a long holding period. On income, VEU currently yields 2.54% against 2.31% for VOE.

Holdings Overlap

1.0%overlap

VEU and VOE share 3 holdings out of 2984 unique holdings combined, representing a 1.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VEUWeight in VOEDifference
SLB:CW0.90%1.20%0.30%
HBAN0.05%0.62%0.57%
KR0.01%0.53%0.52%

Frequently Asked Questions

Which is cheaper, VEU or VOE?

VEU has an expense ratio of 0.04% while VOE charges 0.05%. VEU is the cheaper option. On a $10,000 investment, that is $1 per year of difference.

Which performed better, VEU or VOE?

Over the past year VEU returned +26.85% vs +25.06% for VOE, so VEU leads on 1-year performance. Over the longest common window we track (19 years), VEU annualized +3.59% vs +8.02% for VOE. Past performance does not guarantee future results.

Which is riskier, VEU or VOE?

VEU has been the more volatile fund at 17.7% annualized versus 17.6% for VOE. Worst drawdown: VEU -62.8% vs VOE -63.4%.

Should I hold both VEU and VOE?

VEU and VOE have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VEU and VOE?

VEU and VOE share 3 common holdings with a 1.0% weight overlap. Combined, they hold 2984 unique securities.

Which pays a higher dividend, VEU or VOE?

VEU yields 2.54% while VOE yields 2.31%, so VEU currently pays the higher dividend yield.

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