VEU vs VTV
Vanguard FTSE All World Ex US ETF vs Vanguard Morningstar Value ETF
Quick Verdict
VTV has a lower expense ratio. VTV delivered stronger 1-year returns. VEU offers more diversification with 3,928 holdings.
Side-by-Side Comparison
| Metric | VEU | VTV | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.03% | |
| AUM | $68.4B | $187.8B | |
| Dividend Yield | 2.55% | 1.85% | |
| Holdings | 3,928 | 311 | |
| YTD Return | +14.50% | +18.02% | |
| 1Y Return | +25.77% | +26.57% | |
| 3Y Return (annualized) | +20.75% | +19.29% | |
| 5Y Return (annualized) | +9.98% | +12.56% | |
| Volatility (annualized) | 17.7% | 14.5% | |
| Max Drawdown | -62.8% | -61.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 2, 2007 | Jan 26, 2004 |
VEU vs VTV Performance
Vanguard FTSE All World Ex US ETF (VEU) is a ETF from Vanguard (US) and Vanguard Morningstar Value ETF (VTV) is a ETF from Vanguard (US). Over the past year VEU returned +25.77% while VTV returned +26.57%. Year to date, VEU is up 14.50% versus a gain of 18.02% for VTV.
Over three years, VEU compounded at +20.75% per year against +19.29% for VTV; over five years the annualized figures are +9.98% and +12.56% respectively. Across the full 20-year window we track, VTV has the edge at +7.59% annualized vs +3.55%. 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 14.5% for VTV. 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 -61.3% for VTV. 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VEU charges 0.04% per year while VTV 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 1.85% for VTV.
Holdings Overlap
VEU and VTV share 4 holdings out of 3125 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VEU or VTV?
VEU has an expense ratio of 0.04% while VTV charges 0.03%. VTV is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VEU or VTV?
Over the past year VEU returned +25.77% vs +26.57% for VTV, so VTV leads on 1-year performance. Over the longest common window we track (20 years), VEU annualized +3.55% vs +7.59% for VTV. Past performance does not guarantee future results.
Which is riskier, VEU or VTV?
VEU has been the more volatile fund at 17.7% annualized versus 14.5% for VTV. Worst drawdown: VEU -62.8% vs VTV -61.3%.
Should I hold both VEU and VTV?
VEU and VTV have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VEU and VTV?
VEU and VTV share 4 common holdings with a 0.4% weight overlap. Combined, they hold 3125 unique securities.
Which pays a higher dividend, VEU or VTV?
VEU yields 2.55% while VTV yields 1.85%, so VEU currently pays the higher dividend yield.
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