VEU vs VTILX
Vanguard FTSE All World Ex US ETF vs Vanguard Total International Bond II Index Fund Class Institutional
Quick Verdict
VEU has a lower expense ratio. VEU delivered stronger 1-year returns. VTILX offers more diversification with 7,391 holdings.
Side-by-Side Comparison
| Metric | VEU | VTILX | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.07% | |
| AUM | $68.4B | $141.9B | |
| Dividend Yield | 2.55% | 4.19% | |
| Holdings | 3,928 | 7,391 | |
| YTD Return | +15.44% | -1.38% | |
| 1Y Return | +27.32% | -3.21% | |
| 3Y Return (annualized) | +21.13% | -0.30% | |
| 5Y Return (annualized) | +9.93% | - | |
| Volatility (annualized) | 17.7% | 6.0% | |
| Max Drawdown | -62.8% | -15.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 2, 2007 | Feb 17, 2021 |
VEU vs VTILX Performance
Vanguard FTSE All World Ex US ETF (VEU) is a ETF from Vanguard (US) and Vanguard Total International Bond II Index Fund Class Institutional (VTILX) is a mutual fund from Vanguard (US). Over the past year VEU returned +27.32% while VTILX returned -3.21%. Year to date, VEU is up 15.44% versus a loss of 1.38% for VTILX.
Over three years, VEU compounded at +21.13% per year against -0.30% for VTILX. Across the full 5-year window we track, VEU has the edge at +3.59% annualized vs -2.89%. 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 6.0% for VTILX. 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 -15.3% for VTILX. 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VEU charges 0.04% per year while VTILX charges 0.07%. On a $10,000 position that is $4 vs $7 annually, a gap of $3 per year that compounds over a long holding period. On income, VEU currently yields 2.55% against 4.19% for VTILX.
Holdings Overlap
VEU and VTILX share 27 holdings out of 4253 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VEU or VTILX?
VEU has an expense ratio of 0.04% while VTILX charges 0.07%. VEU is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VEU or VTILX?
Over the past year VEU returned +27.32% vs -3.21% for VTILX, so VEU leads on 1-year performance. Over the longest common window we track (5 years), VEU annualized +3.59% vs -2.89% for VTILX. Past performance does not guarantee future results.
Which is riskier, VEU or VTILX?
VEU has been the more volatile fund at 17.7% annualized versus 6.0% for VTILX. Worst drawdown: VEU -62.8% vs VTILX -15.3%.
Should I hold both VEU and VTILX?
VEU and VTILX have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VEU and VTILX?
VEU and VTILX share 27 common holdings with a 0.1% weight overlap. Combined, they hold 4253 unique securities.
Which pays a higher dividend, VEU or VTILX?
VEU yields 2.55% while VTILX yields 4.19%, so VTILX currently pays the higher dividend yield.
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