VEU vs VTIP
Vanguard FTSE All World Ex US ETF vs Vanguard Short-Term Inflation-Protected Securities ETF
Quick Verdict
VTIP has a lower expense ratio. VEU delivered stronger 1-year returns. VEU offers more diversification with 2818 holdings.
Side-by-Side Comparison
| Metric | VEU | VTIP | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.03% | |
| AUM | $67.3B | $19.3B | |
| Dividend Yield | 2.54% | 3.60% | |
| Holdings | 3,921 | 27 | |
| YTD Return | +14.81% | +1.87% | |
| 1Y Return | +28.44% | +3.01% | |
| 3Y Return (annualized) | +19.56% | +5.37% | |
| 5Y Return (annualized) | +9.56% | +3.39% | |
| Volatility (annualized) | 17.7% | 2.4% | |
| Max Drawdown | -62.8% | -7.1% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 2, 2007 | Oct 12, 2012 |
VEU vs VTIP Performance
Vanguard FTSE All World Ex US ETF (VEU) is a ETF from Vanguard (US) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is a ETF from Vanguard (US). Over the past year VEU returned +28.44% while VTIP returned +3.01%. Year to date, VEU is up 14.81% versus a gain of 1.87% for VTIP.
Over three years, VEU compounded at +19.56% per year against +5.37% for VTIP; over five years the annualized figures are +9.56% and +3.39% respectively. Across the full 14-year window we track, VEU has the edge at +3.57% annualized vs +1.58%. 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 2.4% for VTIP. 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 -7.1% for VTIP. 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VEU charges 0.04% per year while VTIP 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 2.54% against 3.60% for VTIP.
Holdings Overlap
VEU and VTIP share 0 holdings out of 2841 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VEU or VTIP?
VEU has an expense ratio of 0.04% while VTIP charges 0.03%. VTIP is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VEU or VTIP?
Over the past year VEU returned +28.44% vs +3.01% for VTIP, so VEU leads on 1-year performance. Over the longest common window we track (14 years), VEU annualized +3.57% vs +1.58% for VTIP. Past performance does not guarantee future results.
Which is riskier, VEU or VTIP?
VEU has been the more volatile fund at 17.7% annualized versus 2.4% for VTIP. Worst drawdown: VEU -62.8% vs VTIP -7.1%.
Should I hold both VEU and VTIP?
VEU and VTIP have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VEU and VTIP?
VEU and VTIP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2841 unique securities.
Which pays a higher dividend, VEU or VTIP?
VEU yields 2.54% while VTIP yields 3.60%, so VTIP currently pays the higher dividend yield.
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