VEU vs VWO
Vanguard FTSE All World Ex US ETF vs Vanguard FTSE Emerging Markets ETF
Which is better, VEU or VWO?
VEU has been ahead.
VEU has a lower expense ratio. VEU led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.92.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VEU | VWO |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.06% |
| AUM | $68.4B | $122.0B |
| Dividend Yield | 2.48% | 2.29% |
| Holdings | 3,928 | 6,334 |
| YTD Return | +14.75%Best | +10.00% |
| 1Y Return | +22.92%Best | +15.58% |
| 3Y Return (annualized) | +20.30%Best | +17.69% |
| 5Y Return (annualized) | +9.19%Best | +6.01% |
| Volatility (annualized) | 17.7%Best | 20.3% |
| Max Drawdown | -62.8%Best | -68.3% |
| $10,000 over 5 years | $15,521Best | $13,389 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Mar 2, 2007 | Mar 4, 2005 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Mar 8, 2007 to Sep 11, 2026 (19.5 years).
VEU vs VWO growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 19.5 years both funds cover.
VEU vs VWO Performance
Vanguard FTSE All World Ex US ETF (VEU) is an ETF from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is an ETF from Vanguard (US). Over the past year VEU returned +22.92% while VWO returned +15.58%. Year to date, VEU is up 14.75% versus a gain of 10.00% for VWO.
Over three years, VEU compounded at +20.30% per year against +17.69% for VWO; over five years the annualized figures are +9.19% and +6.01% respectively. Across the full 20-year window we track, VEU has the edge at +3.55% annualized vs +3.31%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWO has been the more volatile fund, with annualized monthly volatility of 20.3% compared with 17.7% for VEU. 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 -68.3% for VWO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.92. 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 VWO 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 2.48% against 2.29% for VWO.
Holdings Overlap
We hold position weights for 3,655 holdings in VEU and 4,694 in VWO, totalling 94.0% and 88.0% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 2,138 positions appear in both.
2,138 positions in common, counted across the 3,655 positions we hold weights for in VEU and 4,694 in VWO, against full books of 3,928 and 6,334.
Top Shared Holdings
| Stock | Weight in VEU | Weight in VWO | Difference |
|---|---|---|---|
| 9988:HKAlibaba Group Holding, Ltd. | 0.54% | 1.80% | 1.26% |
| 2454:TWMediatek, Inc. | 0.49% | 1.64% | 1.15% |
| 2308:TWDelta Electronics Inc | 0.29% | 0.99% | 0.70% |
| 2317:TWHon Hai Precision Industry Co., Ltd. | 0.24% | 0.80% | 0.56% |
| HDFCBANK:MBHDFC Bank Ltd | 0.23% | 0.79% | 0.56% |
| RELIANCE:MBReliance Industries Ltd | 0.22% | 0.75% | 0.53% |
| ICICIBANK:MBIcici Bank Ltd | 0.19% | 0.63% | 0.44% |
| ASXAse Technology Holding Co Ltd | 0.18% | 0.61% | 0.43% |
| 1398:HKIcbc Ltd. | 0.16% | 0.54% | 0.38% |
| 532454:MBBharti Airtel Ltd | 0.15% | 0.49% | 0.34% |
You are not choosing between two funds in isolation.
Whichever of VEU and VWO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VEU or VWO?
VEU has an expense ratio of 0.04% while VWO charges 0.06%. VEU is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, VEU or VWO?
Over the past year VEU returned +22.92% vs +15.58% for VWO, so VEU leads on 1-year performance. Over the longest common window we track (20 years), VEU annualized +3.55% vs +3.31% for VWO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VEU or VWO?
VWO has been the more volatile fund at 20.3% annualized versus 17.7% for VEU. Worst drawdown: VEU -62.8% vs VWO -68.3%.
Should I hold both VEU and VWO?
VEU and VWO have a monthly-return correlation of 0.92, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, VEU or VWO?
VEU yields 2.48% while VWO yields 2.29%, so VEU currently pays the higher dividend yield.
Is VWO better than VEU?
VEU has a lower expense ratio. VEU led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.92. Which one suits a particular account depends on what it is for. This is information, not a recommendation.