VEA vs VGIT
Vanguard FTSE Developed Markets ETF vs Vanguard Intermediate Term Treasury ETF
Quick Verdict
VEA delivered stronger 1-year returns. VEA offers more diversification with 3008 holdings.
Side-by-Side Comparison
| Metric | VEA | VGIT | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $230.9B | $42.1B | |
| Dividend Yield | 2.57% | 3.84% | |
| Holdings | 3,918 | 106 | |
| YTD Return | +16.14% | -0.62% | |
| 1Y Return | +29.87% | +1.32% | |
| 3Y Return (annualized) | +20.12% | +3.60% | |
| 5Y Return (annualized) | +10.27% | -0.12% | |
| Volatility (annualized) | 17.8% | 4.3% | |
| Max Drawdown | -62.9% | -17.2% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jul 20, 2007 | Nov 19, 2009 |
VEA vs VGIT Performance
Vanguard FTSE Developed Markets ETF (VEA) is a ETF from Vanguard (US) and Vanguard Intermediate Term Treasury ETF (VGIT) is a ETF from Vanguard (US). Over the past year VEA returned +29.87% while VGIT returned +1.32%. Year to date, VEA is up 16.14% versus a loss of 0.62% for VGIT.
Over three years, VEA compounded at +20.12% per year against +3.60% for VGIT; over five years the annualized figures are +10.27% and -0.12% respectively. Across the full 17-year window we track, VEA has the edge at +3.14% annualized vs +0.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEA has been the more volatile fund, with annualized monthly volatility of 17.8% compared with 4.3% for VGIT. 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 -17.2% for VGIT. 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 0.07. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VEA charges 0.03% per year while VGIT charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VEA currently yields 2.57% against 3.84% for VGIT.
Holdings Overlap
VEA and VGIT share 0 holdings out of 3092 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VEA or VGIT?
VEA has an expense ratio of 0.03% while VGIT charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VEA or VGIT?
Over the past year VEA returned +29.87% vs +1.32% for VGIT, so VEA leads on 1-year performance. Over the longest common window we track (17 years), VEA annualized +3.14% vs +0.75% for VGIT. Past performance does not guarantee future results.
Which is riskier, VEA or VGIT?
VEA has been the more volatile fund at 17.8% annualized versus 4.3% for VGIT. Worst drawdown: VEA -62.9% vs VGIT -17.2%.
Should I hold both VEA and VGIT?
VEA and VGIT have a monthly-return correlation of 0.07, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VEA and VGIT?
VEA and VGIT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3092 unique securities.
Which pays a higher dividend, VEA or VGIT?
VEA yields 2.57% while VGIT yields 3.84%, so VGIT currently pays the higher dividend yield.
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