VEU vs VXUS

Quick Verdict

VEU has a lower expense ratio. VEU delivered stronger 1-year returns. VXUS offers more diversification with 7860 holdings.

Lower Fees: VEUHigher Returns: VEUMore Diversified: VXUS

Side-by-Side Comparison

MetricVEUVXUSWinner
Expense Ratio0.04%0.05%
AUM$67.3B$156.5B
Dividend Yield2.54%2.60%
Holdings3,9218,747
YTD Return+12.11%+11.69%
1Y Return+27.42%+26.65%
3Y Return (annualized)+18.50%+18.15%
5Y Return (annualized)+8.98%+8.66%
Volatility (annualized)17.7%15.0%
Max Drawdown-62.8%-39.9%
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityEquity
InceptionMar 2, 2007Jan 26, 2011

VEU vs VXUS Performance

Vanguard FTSE All World Ex US ETF (VEU) is a ETF from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VEU returned +27.42% while VXUS returned +26.65%. Year to date, VEU is up 12.11% versus a gain of 11.69% for VXUS.

Over three years, VEU compounded at +18.50% per year against +18.15% for VXUS; over five years the annualized figures are +8.98% and +8.66% respectively. Across the full 16-year window we track, VXUS has the edge at +4.69% annualized vs +3.44%. 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 15.0% for VXUS. 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 -39.9% for VXUS. 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 1.00. 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 VXUS charges 0.05%. On a $10,000 position that is $4 vs $5 annually, a gap of $1 per year that compounds over a long holding period. On income, VEU currently yields 2.54% against 2.60% for VXUS.

Holdings Overlap

72.0%overlap

VEU and VXUS share 2613 holdings out of 8065 unique holdings combined, representing a 72.0% weight overlap.

High overlap means holding both may not provide much additional diversification.

Top Shared Holdings

StockWeight in VEUWeight in VXUSDifference
2330:TW3.73%3.41%0.32%
ASML:AS1.41%1.29%0.12%
0700:HK1.00%0.92%0.08%
000660:KRProProPro
ROG:SMProProPro
NOVN:SMProProPro
9988:HKProProPro
HSBA:LNProProPro
AZN:LNProProPro
NESN:SMProProPro
See all 10 holdings VEU shares with VXUS
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, VEU or VXUS?

VEU has an expense ratio of 0.04% while VXUS charges 0.05%. VEU is the cheaper option. On a $10,000 investment, that is $1 per year of difference.

Which performed better, VEU or VXUS?

Over the past year VEU returned +27.42% vs +26.65% for VXUS, so VEU leads on 1-year performance. Over the longest common window we track (16 years), VEU annualized +3.44% vs +4.69% for VXUS. Past performance does not guarantee future results.

Which is riskier, VEU or VXUS?

VEU has been the more volatile fund at 17.7% annualized versus 15.0% for VXUS. Worst drawdown: VEU -62.8% vs VXUS -39.9%.

Should I hold both VEU and VXUS?

VEU and VXUS have a monthly-return correlation of 1.00, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between VEU and VXUS?

VEU and VXUS share 2613 common holdings with a 72.0% weight overlap. Combined, they hold 8065 unique securities.

Which pays a higher dividend, VEU or VXUS?

VEU yields 2.54% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.

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