VEU vs VT
Vanguard FTSE All World Ex US ETF vs Vanguard Total World Stock ETF
Quick Verdict
VEU has a lower expense ratio. VEU delivered stronger 1-year returns. VT offers more diversification with 8927 holdings.
Side-by-Side Comparison
| Metric | VEU | VT | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.06% | |
| AUM | $67.3B | $77.6B | |
| Dividend Yield | 2.54% | 1.61% | |
| Holdings | 3,921 | 10,133 | |
| YTD Return | +14.28% | +13.96% | |
| 1Y Return | +27.83% | +24.60% | |
| 3Y Return (annualized) | +19.54% | +20.52% | |
| 5Y Return (annualized) | +9.40% | +11.09% | |
| Volatility (annualized) | 17.7% | 16.6% | |
| Max Drawdown | -62.8% | -50.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 2, 2007 | Jun 24, 2008 |
VEU vs VT Performance
Vanguard FTSE All World Ex US ETF (VEU) is a ETF from Vanguard (US) and Vanguard Total World Stock ETF (VT) is a ETF from Vanguard (US). Over the past year VEU returned +27.83% while VT returned +24.60%. Year to date, VEU is up 14.28% versus a gain of 13.96% for VT.
Over three years, VEU compounded at +19.54% per year against +20.52% for VT; over five years the annualized figures are +9.40% and +11.09% respectively. Across the full 18-year window we track, VT has the edge at +7.35% annualized vs +3.54%. 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 16.6% for VT. 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 -50.6% for VT. 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 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VEU charges 0.04% per year while VT charges 0.06%. On a $10,000 position that is $4 vs $6 annually, a gap of $2 per year that compounds over a long holding period. On income, VEU currently yields 2.54% against 1.61% for VT.
Holdings Overlap
VEU and VT share 2179 holdings out of 9566 unique holdings combined, representing a 21.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VEU or VT?
VEU has an expense ratio of 0.04% while VT charges 0.06%. VEU is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VEU or VT?
Over the past year VEU returned +27.83% vs +24.60% for VT, so VEU leads on 1-year performance. Over the longest common window we track (18 years), VEU annualized +3.54% vs +7.35% for VT. Past performance does not guarantee future results.
Which is riskier, VEU or VT?
VEU has been the more volatile fund at 17.7% annualized versus 16.6% for VT. Worst drawdown: VEU -62.8% vs VT -50.6%.
Should I hold both VEU and VT?
VEU and VT have a monthly-return correlation of 0.96, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between VEU and VT?
VEU and VT share 2179 common holdings with a 21.3% weight overlap. Combined, they hold 9566 unique securities.
Which pays a higher dividend, VEU or VT?
VEU yields 2.54% while VT yields 1.61%, so VEU currently pays the higher dividend yield.
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