VEA vs VO
Vanguard FTSE Developed Markets ETF vs Vanguard Mid-Cap ETF
Quick Verdict
VEA delivered stronger 1-year returns. VEA offers more diversification with 3008 holdings.
Side-by-Side Comparison
| Metric | VEA | VO | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $230.9B | $105.9B | |
| Dividend Yield | 2.57% | 1.53% | |
| Holdings | 3,918 | 293 | |
| YTD Return | +15.52% | +13.87% | |
| 1Y Return | +29.08% | +18.87% | |
| 3Y Return (annualized) | +19.97% | +16.27% | |
| 5Y Return (annualized) | +10.09% | +8.03% | |
| Volatility (annualized) | 17.8% | 16.9% | |
| Max Drawdown | -62.9% | -60.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 20, 2007 | Jan 26, 2004 |
VEA vs VO Performance
Vanguard FTSE Developed Markets ETF (VEA) is a ETF from Vanguard (US) and Vanguard Mid-Cap ETF (VO) is a ETF from Vanguard (US). Over the past year VEA returned +29.08% while VO returned +18.87%. Year to date, VEA is up 15.52% versus a gain of 13.87% for VO.
Over three years, VEA compounded at +19.97% per year against +16.27% for VO; over five years the annualized figures are +10.09% and +8.03% respectively. Across the full 19-year window we track, VO has the edge at +9.21% 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 16.9% for VO. 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 -60.3% for VO. 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VEA charges 0.03% per year while VO charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VEA currently yields 2.57% against 1.53% for VO.
Holdings Overlap
VEA and VO share 4 holdings out of 3283 unique holdings combined, representing a 0.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VEA or VO?
VEA has an expense ratio of 0.03% while VO charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VEA or VO?
Over the past year VEA returned +29.08% vs +18.87% for VO, so VEA leads on 1-year performance. Over the longest common window we track (19 years), VEA annualized +3.11% vs +9.21% for VO. Past performance does not guarantee future results.
Which is riskier, VEA or VO?
VEA has been the more volatile fund at 17.8% annualized versus 16.9% for VO. Worst drawdown: VEA -62.9% vs VO -60.3%.
Should I hold both VEA and VO?
VEA and VO have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VEA and VO?
VEA and VO share 4 common holdings with a 0.9% weight overlap. Combined, they hold 3283 unique securities.
Which pays a higher dividend, VEA or VO?
VEA yields 2.57% while VO yields 1.53%, so VEA currently pays the higher dividend yield.
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