VEU vs VTI
Vanguard FTSE All World Ex US ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VEU delivered stronger 1-year returns. VEU offers more diversification with 3,928 holdings.
Side-by-Side Comparison
| Metric | VEU | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.03% | |
| AUM | $68.4B | $666.9B | |
| Dividend Yield | 2.55% | 1.07% | |
| Holdings | 3,928 | 3,543 | |
| YTD Return | +15.53% | +13.14% | |
| 1Y Return | +26.71% | +20.29% | |
| 3Y Return (annualized) | +20.56% | +21.42% | |
| 5Y Return (annualized) | +9.88% | +12.00% | |
| Volatility (annualized) | 17.7% | 15.3% | |
| Max Drawdown | -62.8% | -56.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 2, 2007 | May 24, 2001 |
VEU vs VTI Performance
Vanguard FTSE All World Ex US ETF (VEU) is a ETF from Vanguard (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year VEU returned +26.71% while VTI returned +20.29%. Year to date, VEU is up 15.53% versus a gain of 13.14% for VTI.
Over three years, VEU compounded at +20.56% per year against +21.42% for VTI; over five years the annualized figures are +9.88% and +12.00% respectively. Across the full 20-year window we track, VTI has the edge at +8.08% 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 15.3% for VTI. 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 -56.6% for VTI. 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VEU charges 0.04% per year while VTI 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 2.55% against 1.07% for VTI.
Holdings Overlap
VEU and VTI share 14 holdings out of 5594 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VEU or VTI?
VEU has an expense ratio of 0.04% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VEU or VTI?
Over the past year VEU returned +26.71% vs +20.29% for VTI, so VEU leads on 1-year performance. Over the longest common window we track (20 years), VEU annualized +3.59% vs +8.08% for VTI. Past performance does not guarantee future results.
Which is riskier, VEU or VTI?
VEU has been the more volatile fund at 17.7% annualized versus 15.3% for VTI. Worst drawdown: VEU -62.8% vs VTI -56.6%.
Should I hold both VEU and VTI?
VEU and VTI have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VEU and VTI?
VEU and VTI share 14 common holdings with a 0.3% weight overlap. Combined, they hold 5594 unique securities.
Which pays a higher dividend, VEU or VTI?
VEU yields 2.55% while VTI yields 1.07%, so VEU currently pays the higher dividend yield.
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