VEU vs VOT

Quick Verdict

VEU has a lower expense ratio. VEU delivered stronger 1-year returns. VEU offers more diversification with 3,921 holdings.

Lower Fees: VEUHigher Returns: VEUMore Diversified: VEU

Side-by-Side Comparison

MetricVEUVOTWinner
Expense Ratio0.04%0.05%
AUM$67.3B$19.9B
Dividend Yield2.54%0.65%
Holdings3,921136
YTD Return+15.47%+11.80%
1Y Return+26.85%+9.62%
3Y Return (annualized)+20.12%+16.13%
5Y Return (annualized)+9.50%+5.98%
Volatility (annualized)17.7%18.6%
Max Drawdown-62.8%-60.3%
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityEquity
InceptionMar 2, 2007Aug 17, 2006

VEU vs VOT Performance

Vanguard FTSE All World Ex US ETF (VEU) is a ETF from Vanguard (US) and Vanguard Mid-Cap Growth ETF (VOT) is a ETF from Vanguard (US). Over the past year VEU returned +26.85% while VOT returned +9.62%. Year to date, VEU is up 15.47% versus a gain of 11.80% for VOT.

Over three years, VEU compounded at +20.12% per year against +16.13% for VOT; over five years the annualized figures are +9.50% and +5.98% respectively. Across the full 19-year window we track, VOT has the edge at +9.74% annualized vs +3.59%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOT has been the more volatile fund, with annualized monthly volatility of 18.6% 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 -60.3% for VOT. 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 0.82. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

VEU charges 0.04% per year while VOT 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 0.65% for VOT.

Holdings Overlap

0.2%overlap

VEU and VOT share 2 holdings out of 2937 unique holdings combined, representing a 0.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VEUWeight in VOTDifference
WCN:CA0.11%0.93%0.82%
IRM0.05%0.78%0.73%

Frequently Asked Questions

Which is cheaper, VEU or VOT?

VEU has an expense ratio of 0.04% while VOT 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 VOT?

Over the past year VEU returned +26.85% vs +9.62% for VOT, so VEU leads on 1-year performance. Over the longest common window we track (19 years), VEU annualized +3.59% vs +9.74% for VOT. Past performance does not guarantee future results.

Which is riskier, VEU or VOT?

VOT has been the more volatile fund at 18.6% annualized versus 17.7% for VEU. Worst drawdown: VEU -62.8% vs VOT -60.3%.

Should I hold both VEU and VOT?

VEU and VOT have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VEU and VOT?

VEU and VOT share 2 common holdings with a 0.2% weight overlap. Combined, they hold 2937 unique securities.

Which pays a higher dividend, VEU or VOT?

VEU yields 2.54% while VOT yields 0.65%, so VEU currently pays the higher dividend yield.

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