# How Vanguard FTSE All-World ex-US ETF (VEU) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/veu
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on VEU alone. It places VEU (Vanguard FTSE All-World ex-US ETF) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where VEU stands in the market, and of the alternatives worth a closer look.

Period covered: VEU's full trading record, from March 2007 through September 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **What you're buying:** A correlation of 0.99 with VEA (Vanguard FTSE Developed Markets ETF) over 5 years: effectively the same bet as the larger fund.
- **Right now:** Over the past 6 months, VEU rose 1.4% against 9.1% for the S&P 500 and 11.2% for the Nasdaq 100.
- **Fund or market?:** VEU rose 1.0% over the past 3 months, 2.9 points behind the S&P 500, which rose 3.9%.
- **Long term:** VEU turned $10,000 into $24,300 over the past decade, against $42,100 in the S&P 500. VEU finished ahead of the S&P 500 in five of its 18 calendar years.
- **In a crash:** VEU has tended to fall harder than the S&P 500 in crashes, about 1.2 times the index's decline.
- **Diversification:** Against the S&P 500, VEU has a correlation of 0.79 over 5 years, more closely than 61% of ETFs with at least $100 million in assets. Next to an index fund it is some diversification, but not a hedge. When the S&P 500 had a down month, VEU usually fell with it (17 of 22 months).
- **Better options**
  - **Popular alternatives:** VYMI (Vanguard International High Dividend Yield ETF) and IDV (iShares International Select Dividend ETF) earned more than VEU with less volatility over the past 5 years. VYMI returned 13.2% a year at 14.8% volatility, against 8.5% a year at 16.4%.
  - **Nearby categories and themes:** LVHI (Franklin International Low Volatility High Dividend Index ETF, international equity) and DBEF (Xtrackers MSCI EAFE Hedged Equity ETF, international equity) earned more than VEU with less volatility over the past 5 years. LVHI returned 17.0% a year at 11.1% volatility, against 8.5% a year at 16.4%.
  - **Whole market:** 92 of the 3,633 stocks and funds worth at least $500 million earned more than VEU with less volatility over the past 5 years, among them VTV (Vanguard Morningstar Value ETF), VIG (Vanguard Dividend Appreciation ETF) and SCHD (Schwab U.S. Dividend Equity ETF).

## How much would $10,000 in VEU have grown?

This chart tracks a hypothetical $10,000 investment in VEU over the past 19 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of VEU over the same span and VEU's popular alternatives, among those that traded for the entire period.

- $10,000 invested in VEU at the end of September 2007 would have grown to $23,885 by September 2026, less than the $70,725 it would have become in SPY, an S&P 500 fund.
- Five of the eight other investments on the chart ended ahead of VEU, and VTI finished highest, at $69,591.

## VEU at a glance

This section summarizes the key facts about the fund, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- VEU's deepest decline since it began trading in 2007 was 61.5%, from October 2007 to March 2009. It took about five years from the low to climb back to its old high.
- Over 18 full calendar years, VEU's best was 2009, when it returned 37.6%, and its worst was 2008, when it lost 43.4%. It lost money in six of those years.
- VEU is 5.1% below its all-time high.

- Type: ETF, International (Asset Management - Global)
- Trading since: March 8, 2007
- Assets: $96B
- Expense ratio: 0.04%
- Volatility (5 years): 16.4%; Sharpe ratio: 0.58
- Worst decline ever: −61.5%, from October 31, 2007 to March 9, 2009; back at its high by July 1, 2014

| Period | VEU total return |
| --- | --- |
| 1 month | −3.8% |
| 3 months | +1.0% |
| 6 months | +1.4% |
| year to date | +10.5% |
| 1 year | +15.1% |
| 3 years | +78.3% |
| 5 years | +50.7% |
| 10 years | +143% |

## VEU against the whole market

Where VEU ranks among every stock and fund, and what across the market has done better.

### How does VEU rank among all ETFs?

This section ranks VEU on return, volatility, risk-adjusted return and worst decline against every ETF worth at least $100 million with enough history.

- VEU lands in the broad middle of the market on every measure here. VEU's 3-year return ranks in the top 31% of the 1,949 ETFs with at least $100 million in assets with 3 years of history.

| Measure | VEU | Rank |
| --- | --- | --- |
| 1-year return | +15.1% | 817 of 2,485 (top 33%) |
| 3-year return | +78.3% | 603 of 1,949 (top 31%) |
| 5-year return | +50.7% | 664 of 1,560 (top 43%) |
| 10-year return | +143% | 499 of 958 (top 53%) |
| Volatility, 5 years | 16.4% | 748 of 1,560 (top 48%) |
| Sharpe ratio, 5 years | 0.58 | 751 of 1,560 (top 49%) |
| Worst decline, past 10 years | −35.0% | 348 of 951 (top 37%) |

### What has beaten VEU on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- 92 ETFs worth at least $500 million sit in the green region: each earned more than VEU over the past 5 years with smaller price swings. That is 3% of the 3,633 screened.
- Among those with at least half VEU's swings, LVHI has the best return for its risk: 17.0% a year at 11.1% volatility, 32% less than VEU's 16.4%, and a Sharpe ratio (return above cash per unit of volatility) of 1.48 against 0.58 for VEU.
- Among VEU's popular alternatives, VYMI and IDV are in the region. VYMI earned 13.2% a year against 8.5% a year for VEU, at 14.8% volatility, 10% less than VEU's 16.4%.

### Is there a better investment than VEU?

The table below lists investments that beat VEU over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes, and, for funds, the same exposure at a lower expense ratio.

- Among VEU's popular alternatives, VYMI and IDV earned more than VEU with less volatility over the past 5 years. VYMI returned 13.2% a year at 14.8% volatility, against 8.5% a year at 16.4%.
- Looking beyond its popular alternatives, LVHI (international equity) and DBEF (international equity) earned more than VEU with less volatility over the past 5 years. LVHI returned 17.0% a year at 11.1% volatility, against 8.5% a year at 16.4%.
- Across the whole market, 92 of the 3,633 stocks and funds worth at least $500 million earned more than VEU with less volatility over the past 5 years, among them VTV, VIG and SCHD.

The 15 strongest of 92 investments that beat VEU over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with VEU | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| VEU: Vanguard FTSE All-World ex-US ETF (this page) |  | +8.5% | 16.4% | 0.58 | −35.0% | +143% |  |  |
| FTLS: First Trust Long/Short Equity ETF | Broad Market | +10.2% | 10.4% | 0.99 | −20.6% | +158% | 0.71 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| PTNQ: Pacer Trendpilot 100 ETF | Technology | +9.7% | 14.1% | 0.73 | −28.1% | +305% | 0.55 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| SIXA: ETC 6 Meridian Mega Cap Equity ETF | Broad Market | +12.8% | 12.7% | 1.01 | −18.4% | — | 0.81 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [VTV](https://easycompare.io/research/vtv): Vanguard Morningstar Value ETF | US Large-Cap Value | +12.1% | 13.7% | 0.90 | −36.8% | +235% | 0.80 | Higher return, lower volatility; Higher return in most periods |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | International Equity | +17.0% | 11.1% | 1.48 | −32.4% | +194% | 0.76 | Higher return, lower volatility; Higher return in most periods |
| [VIG](https://easycompare.io/research/vig): Vanguard Dividend Appreciation ETF | US Dividend Equity | +10.4% | 14.1% | 0.78 | −31.7% | +258% | 0.81 | Higher return, lower volatility; Higher return in most periods |
| [SCHD](https://easycompare.io/research/schd): Schwab U.S. Dividend Equity ETF | US Dividend Equity | +9.7% | 14.3% | 0.72 | −33.4% | +252% | 0.72 | Higher return, lower volatility; Higher return in most periods |
| PVAL: Putnam Focused Large Cap Value ETF | US Large-Cap Value | +16.1% | 15.1% | 1.07 | −41.3% | — | 0.78 | Higher return, lower volatility; Higher return in most periods |
| HDV: iShares Core High Dividend ETF | US Dividend Equity | +12.9% | 13.0% | 1.00 | −37.0% | +172% | 0.65 | Higher return, lower volatility; Higher return in most periods |
| RWL: Invesco S&P 500 Revenue ETF | US Large-Cap Equity | +13.7% | 14.4% | 0.97 | −36.1% | +287% | 0.81 | Higher return, lower volatility; Higher return in most periods |
| PJUL: Innovator U.S. Equity Power Buffer ETF | Broad Market | +10.5% | 8.6% | 1.20 | −18.2% | — | 0.76 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| FJAN: FT Vest U.S. Equity Buffer ETF - January | Multi-Asset | +11.1% | 10.5% | 1.05 | −13.6% | — | 0.78 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| FDL: First Trust Morningstar Dividend Leaders Index Fund | US Dividend Equity | +13.9% | 14.4% | 0.98 | −41.4% | +199% | 0.65 | Higher return, lower volatility; Higher return in most periods |
| GCOW: Pacer Global Cash Cows Dividend ETF | International | +14.1% | 13.6% | 1.04 | −37.6% | +168% | 0.78 | Higher return, lower volatility; Higher return in most periods |
| IWX: iShares Russell Top 200 Value ETF | Broad Market | +12.7% | 13.8% | 0.94 | −35.8% | +221% | 0.82 | Higher return, lower volatility; Higher return in most periods |

## VEU against its popular alternatives

The investments people most often weigh against VEU, compared period by period and year by year.

### How do VEU's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- Nine of the 20 popular alternatives, led by FNDF, EFV and VYMI, were both more rewarding and calmer than VEU over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, VEU returned 8.6% a year, less than the S&P 500's 12.7%, with lower volatility (16.4% against 17.1%).

### Has VEU consistently beaten its popular alternatives?

This section compares VEU with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- Eight of the 24 popular alternatives, led by FNDF, VYMI and EFV, outperformed VEU in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- FNDF, VYMI and EFV outperformed VEU in every long-term period and in all but one short-term period, the most consistent record in the group.
- VT, DFAX and DFAI earned more for the risk they took than VEU (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of VEU | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| VEU: Vanguard FTSE All-World ex-US ETF (this page) | +15.1% | +78.3% | +50.7% | +143% |  |  | 0.58 |
| FNDF: Schwab Fundamental International Large Company Index ETF | +27.2% | +95.8% | +89.2% | +194% | 5/5 short-term, 3/3 long-term | all-weather | 0.87 |
| VYMI: Vanguard International High Dividend Yield ETF | +24.3% | +93.7% | +86.1% | +176% | 5/5 short-term, 3/3 long-term | all-weather | 0.92 |
| EFV: iShares MSCI EAFE Value ETF | +21.4% | +92.4% | +89.0% | +157% | 5/5 short-term, 3/3 long-term | all-weather | 0.88 |
| [VTI](https://easycompare.io/research/vti): Vanguard Morningstar Total Stock Market ETF | +15.2% | +87.9% | +72.6% | +302% | 4/5 short-term, 3/3 long-term | all-weather | 0.71 |
| [VT](https://easycompare.io/research/vt): Vanguard Total World Stock ETF | +15.0% | +83.8% | +63.3% | +223% | 4/5 short-term, 3/3 long-term | all-weather | 0.69 |
| IDV: iShares International Select Dividend ETF | +22.0% | +105% | +82.6% | +159% | 3/5 short-term, 3/3 long-term | consistent | 0.86 |
| AVDE: Avantis International Equity ETF | +16.4% | +83.7% | +61.8% | — | 3/5 short-term, 2/3 long-term | consistent | 0.67 |
| DFAX: Dimensional World ex U.S. Core Equity 2 ETF | +17.9% | +82.8% | +59.3% | — | 3/5 short-term, 2/3 long-term | consistent | 0.66 |
| [SCHF](https://easycompare.io/research/schf): Schwab International Equity ETF | +17.3% | +80.9% | +57.7% | +155% | 2/5 short-term, 3/3 long-term |  | 0.63 |
| [VEA](https://easycompare.io/research/vea): Vanguard FTSE Developed Markets ETF | +17.0% | +81.0% | +55.9% | +153% | 2/5 short-term, 3/3 long-term |  | 0.61 |
| [SPDW](https://easycompare.io/research/spdw): State Street SPDR Portfolio Developed World ex-US ETF | +17.0% | +81.6% | +54.9% | +153% | 2/5 short-term, 3/3 long-term |  | 0.61 |
| AVNM: Avantis All International Markets Equity ETF | +18.4% | +87.7% | — | — | 3/5 short-term, 1/3 long-term |  | — |
| DFAI: Dimensional - International Core Equity Market ETF | +15.8% | +78.5% | +59.0% | — | 3/5 short-term, 1/3 long-term |  | 0.66 |
| [IEMG](https://easycompare.io/research/iemg): iShares Core MSCI Emerging Markets ETF | +17.0% | +83.4% | +39.0% | +122% | 2/5 short-term, 1/3 long-term |  | 0.44 |
| VIGI: Vanguard International Dividend Appreciation ETF | +9.0% | +48.4% | +26.7% | +122% | 3/5 short-term, 0/3 long-term |  | 0.40 |
| IDEV: iShares Core MSCI International Developed Markets ETF | +13.8% | +75.7% | +51.5% | — | 2/5 short-term, 0/3 long-term |  | 0.59 |
| [IEFA](https://easycompare.io/research/iefa): iShares Core MSCI EAFE ETF | +12.8% | +72.4% | +49.0% | +140% | 1/5 short-term, 0/3 long-term |  | 0.56 |
| [EFA](https://easycompare.io/research/efa): iShares MSCI EAFE ETF | +12.5% | +71.2% | +51.0% | +139% | 1/5 short-term, 0/3 long-term |  | 0.58 |
| EFG: iShares MSCI EAFE Growth ETF | +4.1% | +51.3% | +18.5% | +111% | 1/5 short-term, 0/3 long-term |  | 0.28 |
| [BNDX](https://easycompare.io/research/bndx): Vanguard Total International Bond ETF | −1.4% | +13.4% | +0.8% | +15.0% | 1/5 short-term, 0/3 long-term |  | 0.06 |
| [IXUS](https://easycompare.io/research/ixus): iShares Core MSCI Total International Stock ETF | +14.8% | +78.3% | +48.4% | +140% | 0/5 short-term, 0/3 long-term |  | 0.56 |
| [VXUS](https://easycompare.io/research/vxus): Vanguard Total International Stock ETF | +14.6% | +77.2% | +48.6% | +140% | 0/5 short-term, 0/3 long-term |  | 0.57 |
| ACWX: iShares MSCI ACWI ex U.S. ETF | +15.0% | +78.1% | +49.0% | +136% | 0/5 short-term, 0/3 long-term |  | 0.56 |
| [VWO](https://easycompare.io/research/vwo): Vanguard FTSE Emerging Markets ETF | +8.3% | +67.2% | +29.1% | +102% | 0/5 short-term, 0/3 long-term |  | 0.38 |

### How did VEU do year by year?

This table shows each investment's total return in every full calendar year since 2008, along with where VEU ranked among its popular alternatives each year.

- Among its popular alternatives, DFAI came out ahead of VEU most often, in four of the five years both traded.
- VEU finished ahead of the S&P 500 in five of its 18 full calendar years.
- Ranked against its popular alternatives each year, VEU finished in the top quarter in three of 18 years and in the bottom quarter in two. In 2025, it ranked 14 of 22.

| Year | VEU | SPY |
| --- | --- | --- |
| 2025 | +32.4% | +17.7% |
| 2024 | +5.6% | +24.9% |
| 2023 | +15.9% | +26.2% |
| 2022 | −15.6% | −18.2% |
| 2021 | +8.3% | +28.7% |
| 2020 | +11.1% | +18.3% |
| 2019 | +21.8% | +31.2% |
| 2018 | −14.2% | −4.6% |
| 2017 | +27.4% | +21.7% |
| 2016 | +4.9% | +12.0% |

## Risk and diversification

How VEU has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were VEU's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In all five of VEU's worst declines, the S&P 500 held up better over the same dates.
- Not every decline was the market's doing: VEU fell 25.1% from July 2014 to February 2016, while the S&P 500 slipped only 4.9%.
- The slowest recovery came after VEU fell 61.5% from October 2007 to March 2009; it did not regain that peak until July 2014, five years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −61.5% | October 31, 2007 | March 9, 2009 | July 1, 2014 | −54.7% | 2008 financial crisis |
| −35.0% | January 26, 2018 | March 23, 2020 | November 11, 2020 | −18.8% | late-2018 sell-off |
| −29.3% | June 14, 2021 | October 12, 2022 | May 9, 2024 | −14.3% | 2022 bear market |
| −25.1% | July 3, 2014 | February 11, 2016 | May 2, 2017 | −4.9% | 2015 China and oil sell-off |
| −13.7% | March 19, 2025 | April 8, 2025 | May 2, 2025 | −12.2% |  |

### How did VEU do in stock market crashes?

This section measures how far VEU, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- Among its popular alternatives, BNDX held up best, falling less than VEU in all six crashes they both traded through.
- VEU fell less than the S&P 500 in four of the nine crashes it has traded through. The clearest case was the late-2018 sell-off, when VEU fell 14.9% and the S&P 500 fell 19.3%.

| Crash | Dates | VEU fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | not trading | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −61.5% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | 0.0% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −24.6% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −20.7% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −6.2% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −14.9% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −32.8% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −28.3% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −2.5% | −3.4% |

### How closely does VEU move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- Eight of the 16 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than VEU's 0.85, led by VTI, FNDF and VYMI.
- VWO took just 75% of the S&P 500's losses, against 89% for VEU, while still keeping 63% of its gains.
- Over the past 10 years, VEU captured 76% of the S&P 500's gains in rising months and 89% of its losses in falling months, with a beta of 0.80. Its share of the market's losses was larger than its share of the gains.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| VEU: Vanguard FTSE All-World ex-US ETF (this page) | 76.0% | 89.0% | 0.80 |
| FNDF: Schwab Fundamental International Large Company Index ETF | 81.0% | 87.0% | 0.80 |
| VYMI: Vanguard International High Dividend Yield ETF | 75.0% | 80.0% | 0.74 |
| EFV: iShares MSCI EAFE Value ETF | 75.0% | 84.0% | 0.76 |
| [VTI](https://easycompare.io/research/vti): Vanguard Morningstar Total Stock Market ETF | 100% | 103% | 1.02 |
| [VT](https://easycompare.io/research/vt): Vanguard Total World Stock ETF | 90.0% | 98.0% | 0.94 |
| IDV: iShares International Select Dividend ETF | 76.0% | 87.0% | 0.78 |
| [SCHF](https://easycompare.io/research/schf): Schwab International Equity ETF | 79.0% | 93.0% | 0.84 |
| [VEA](https://easycompare.io/research/vea): Vanguard FTSE Developed Markets ETF | 81.0% | 96.0% | 0.86 |
| [IEMG](https://easycompare.io/research/iemg): iShares Core MSCI Emerging Markets ETF | 71.0% | 83.0% | 0.77 |
| VIGI: Vanguard International Dividend Appreciation ETF | 70.0% | 88.0% | 0.73 |
| [IEFA](https://easycompare.io/research/iefa): iShares Core MSCI EAFE ETF | 77.0% | 94.0% | 0.82 |
| [EFA](https://easycompare.io/research/efa): iShares MSCI EAFE ETF | 76.0% | 92.0% | 0.81 |
| EFG: iShares MSCI EAFE Growth ETF | 78.0% | 104% | 0.87 |
| [BNDX](https://easycompare.io/research/bndx): Vanguard Total International Bond ETF | 11.0% | 13.0% | 0.14 |
| [IXUS](https://easycompare.io/research/ixus): iShares Core MSCI Total International Stock ETF | 76.0% | 91.0% | 0.81 |
| [VWO](https://easycompare.io/research/vwo): Vanguard FTSE Emerging Markets ETF | 63.0% | 75.0% | 0.69 |

### What diversifies VEU?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in VEU into DBMF would have cut the portfolio's volatility by 23% over the past 5 years and raised its annual return (+9.6% for VEU alone, +10.2% for the mix).
- Among large ETFs, MLPX, GLD and XLE have moved largely independently of VEU over the past 5 years, with correlations of 0.47 or lower, and each still earned a positive 5-year return.
- CAH made money in four of the six calendar years in which VEU lost money.

| Investment | Correlation with VEU | 5Y return | Volatility | Sharpe | Rose in VEU's 6 down years |
| --- | --- | --- | --- | --- | --- |
| MLPX: Global X - MLP & Energy Infrastructure ETF | 0.47 | +135% | 19.7% | 0.97 | 2 of 6 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.47 | +126% | 18.9% | 0.96 | 2 of 6 |
| [XLE](https://easycompare.io/research/xle): State Street Energy Select Sector SPDR ETF | 0.27 | +177% | 25.5% | 0.93 | 2 of 6 |
| AMLP: Alerian MLP ETF | 0.34 | +111% | 18.9% | 0.89 | 3 of 6 |
| DBMF: iMGP DBi Managed Futures Strategy ETF | -0.30 | +59.7% | 12.4% | 0.82 | 1 of 6 |
| DBA: Invesco DB Agriculture Fund | 0.19 | +66.4% | 13.8% | 0.81 | 2 of 6 |
| USO: United States Oil Fund, LP | -0.09 | +176% | 37.7% | 0.73 | 1 of 6 |
| FLSP: Franklin Systematic Style Premia ETF | 0.00 | +49.8% | 13.4% | 0.68 | 1 of 6 |

## Common questions

### What was VEU's worst drawdown?

VEU's deepest decline since it began trading in 2007 was 61.5%, from October 2007 to March 2009. It took about five years from the low to climb back to its old high. Because VEU launched in March 2007, that record does not include the dot-com bust.

### What were VEU's best and worst years?

Over 18 full calendar years, VEU's best year was 2009, when it returned 37.6%. Its worst was 2008, with a return of -43.4%.

### Is there a better investment than VEU?

Among VEU's popular alternatives, VYMI and IDV earned more than VEU with less volatility over the past 5 years. VYMI returned 13.2% a year at 14.8% volatility, against 8.5% a year at 16.4%. Looking beyond its popular alternatives, LVHI (international equity) and DBEF (international equity) earned more than VEU with less volatility over the past 5 years. LVHI returned 17.0% a year at 11.1% volatility, against 8.5% a year at 16.4%.

### Is VEU more volatile than the S&P 500?

No. VEU's volatility over the past 5 years was 16.4%, 1.0 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, VEU's return lands within 16.4% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is VEU's Sharpe ratio?

VEU's Sharpe ratio over the past 5 years was 0.58, against 0.79 for the S&P 500, so VEU earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is VEU with the S&P 500?

Over the past 5 years, VEU's monthly returns had a correlation of 0.79 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They often move together: some diversification next to an index fund, but not a cushion. In the table, the correlation column measures each option against VEU instead: the lower it is, the more that option would diversify a VEU holding.

### What are the best alternatives to VEU?

Of the 24 popular alternatives we compared, eight outperformed VEU in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: FNDF, VYMI and EFV.

### Did VEU outperform the S&P 500?

VEU finished ahead of the S&P 500 (SPY) in five of 18 full calendar years. In 2025, it returned +32.4%, against +17.7% for the index.

### How did VEU do in stock market crashes?

VEU fell less than the S&P 500 (SPY) in four of the nine major crashes it has traded through, and further in four. The clearest case was the late-2018 sell-off, when VEU fell 14.9% and the S&P 500 fell 19.3%.

### What diversifies VEU?

These had a low correlation with VEU over the past 5 years and still earned a positive 5-year return: among large ETFs, MLPX (correlation 0.47), GLD (correlation 0.47) and XLE (correlation 0.27); among large stocks, CAH (correlation 0.28), CLS (correlation 0.29) and FIX (correlation 0.38). A correlation near zero means the two have moved largely independently.

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## Explore further

- Full page with charts: https://easycompare.io/research/veu
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against VEU live: https://betterthanspy.com/?b=VEU&utm_source=easycompare&utm_medium=research