VEA vs VEU
Vanguard FTSE Developed Markets ETF vs Vanguard FTSE All World Ex US ETF
Which is better, VEA or VEU?
Nearly the same fund. VEA costs less.
VEA has a lower expense ratio. VEA led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.99.
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 | VEA | VEU |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.04% |
| AUM | $230.3B | $68.4B |
| Dividend Yield | 2.49% | 2.48% |
| Holdings | 3,886 | 3,928 |
| YTD Return | +14.27%Best | +13.28% |
| 1Y Return | +22.38%Best | +20.82% |
| 3Y Return (annualized) | +19.89%Best | +19.49% |
| 5Y Return (annualized) | +9.64%Best | +9.02% |
| Volatility (annualized) | 17.7%Best | 17.8% |
| Max Drawdown | -62.9% | -62.8%Best |
| $10,000 over 5 years | $15,843Best | $15,400 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Jul 20, 2007 | Mar 2, 2007 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jul 26, 2007 to Sep 14, 2026 (19.1 years).
VEA vs VEU 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 19.1 years both funds cover.
VEA vs VEU Performance
Vanguard FTSE Developed Markets ETF (VEA) is an ETF from Vanguard (US) and Vanguard FTSE All World Ex US ETF (VEU) is an ETF from Vanguard (US). Over the past year VEA returned +22.38% while VEU returned +20.82%. Year to date, VEA is up 14.27% versus a gain of 13.28% for VEU.
Over three years, VEA compounded at +19.89% per year against +19.49% for VEU; over five years the annualized figures are +9.64% and +9.02% respectively. Across the full 19-year window we track, VEA has the edge at +3.03% annualized vs +3.01%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEU has been the more volatile fund, with annualized monthly volatility of 17.8% compared with 17.7% for VEA. 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 -62.9% for VEA and -62.8% for VEU. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.99. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VEA charges 0.03% per year while VEU charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, VEA currently yields 2.49% against 2.48% for VEU.
Holdings Overlap
We hold position weights for 3,754 holdings in VEA and 3,645 in VEU, totalling 94.2% and 94.2% 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, 1,244 positions appear in both.
1,244 positions in common, counted across the 3,754 positions we hold weights for in VEA and 3,645 in VEU, against full books of 3,886 and 3,928.
Top Shared Holdings
| Stock | Weight in VEA | Weight in VEU | Difference |
|---|---|---|---|
| ASML:ASAsml Holding Nv | 1.96% | 1.56% | 0.40% |
| 000660:KRSk Hynix Inc Common Stock KRW 5000 | 1.94% | 1.54% | 0.40% |
| HSBA:LNHsbc Securities Inc | 1.13% | 0.89% | 0.24% |
| ROP:SMRoche Ps Par Ag | 0.95% | 0.75% | 0.20% |
| RY:CARoyal Bank Of Canada | 0.90% | 0.72% | 0.18% |
| NOVN:SMNovartis Ag – Class N | 0.90% | 0.71% | 0.19% |
| SHELShell Plc | 0.79% | 0.63% | 0.16% |
| NESN:SMNestle Sa | 0.79% | 0.63% | 0.16% |
| AZN:LNAstraZeneca PLC | 0.79% | 0.62% | 0.17% |
| 8306:JPMitsubishi Ufj Financial Group, Inc. | 0.75% | 0.59% | 0.16% |
You are not choosing between two funds in isolation.
Whichever of VEA and VEU 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, VEA or VEU?
VEA has an expense ratio of 0.03% while VEU charges 0.04%. VEA is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, VEA or VEU?
Over the past year VEA returned +22.38% vs +20.82% for VEU, so VEA leads on 1-year performance. Over the longest common window we track (19 years), VEA annualized +3.03% vs +3.01% for VEU. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VEA or VEU?
VEU has been the more volatile fund at 17.8% annualized versus 17.7% for VEA. Worst drawdown: VEA -62.9% vs VEU -62.8%.
Should I hold both VEA and VEU?
VEA and VEU have a monthly-return correlation of 0.99, 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, VEA or VEU?
VEA yields 2.49% while VEU yields 2.48%, so VEA currently pays the higher dividend yield.
Is VEU better than VEA?
VEA has a lower expense ratio. VEA led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.99. Which one suits a particular account depends on what it is for. This is information, not a recommendation.