VEA vs VIG
Vanguard FTSE Developed Markets ETF vs Vanguard Dividend Appreciation ETF
Quick Verdict
VEA has a lower expense ratio. VEA delivered stronger 1-year returns. VEA offers more diversification with 3008 holdings.
Side-by-Side Comparison
| Metric | VEA | VIG | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.04% | |
| AUM | $230.9B | $110.2B | |
| Dividend Yield | 2.57% | 1.79% | |
| Holdings | 3,918 | 335 | |
| YTD Return | +15.52% | +12.33% | |
| 1Y Return | +29.08% | +20.84% | |
| 3Y Return (annualized) | +19.97% | +16.69% | |
| 5Y Return (annualized) | +10.09% | +10.89% | |
| Volatility (annualized) | 17.8% | 13.3% | |
| Max Drawdown | -62.9% | -48.2% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 20, 2007 | Apr 21, 2006 |
VEA vs VIG Performance
Vanguard FTSE Developed Markets ETF (VEA) is a ETF from Vanguard (US) and Vanguard Dividend Appreciation ETF (VIG) is a ETF from Vanguard (US). Over the past year VEA returned +29.08% while VIG returned +20.84%. Year to date, VEA is up 15.52% versus a gain of 12.33% for VIG.
Over three years, VEA compounded at +19.97% per year against +16.69% for VIG; over five years the annualized figures are +10.09% and +10.89% respectively. Across the full 19-year window we track, VIG has the edge at +8.70% annualized vs +3.11%. 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 13.3% for VIG. 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 -48.2% for VIG. 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VEA charges 0.03% per year while VIG 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 2.57% against 1.79% for VIG.
Holdings Overlap
VEA and VIG share 3 holdings out of 3336 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VEA or VIG?
VEA has an expense ratio of 0.03% while VIG charges 0.04%. VEA is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VEA or VIG?
Over the past year VEA returned +29.08% vs +20.84% for VIG, so VEA leads on 1-year performance. Over the longest common window we track (19 years), VEA annualized +3.11% vs +8.70% for VIG. Past performance does not guarantee future results.
Which is riskier, VEA or VIG?
VEA has been the more volatile fund at 17.8% annualized versus 13.3% for VIG. Worst drawdown: VEA -62.9% vs VIG -48.2%.
Should I hold both VEA and VIG?
VEA and VIG have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VEA and VIG?
VEA and VIG share 3 common holdings with a 0.1% weight overlap. Combined, they hold 3336 unique securities.
Which pays a higher dividend, VEA or VIG?
VEA yields 2.57% while VIG yields 1.79%, so VEA currently pays the higher dividend yield.
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