VEA vs VOE

Quick Verdict

VEA has a lower expense ratio. VEA delivered stronger 1-year returns. VEA offers more diversification with 3008 holdings.

Lower Fees: VEAHigher Returns: VEAMore Diversified: VEA

Side-by-Side Comparison

MetricVEAVOEWinner
Expense Ratio0.03%0.05%
AUM$230.9B$22.9B
Dividend Yield2.57%2.31%
Holdings3,918177
YTD Return+15.82%+17.73%
1Y Return+29.42%+27.33%
3Y Return (annualized)+20.28%+16.78%
5Y Return (annualized)+10.01%+9.95%
Volatility (annualized)17.8%17.6%
Max Drawdown-62.9%-63.4%
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityEquity
InceptionJul 20, 2007Aug 17, 2006

VEA vs VOE Performance

Vanguard FTSE Developed Markets ETF (VEA) is a ETF from Vanguard (US) and Vanguard Mid-Cap Value ETF (VOE) is a ETF from Vanguard (US). Over the past year VEA returned +29.42% while VOE returned +27.33%. Year to date, VEA is up 15.82% versus a gain of 17.73% for VOE.

Over three years, VEA compounded at +20.28% per year against +16.78% for VOE; over five years the annualized figures are +10.01% and +9.95% respectively. Across the full 19-year window we track, VOE has the edge at +7.98% annualized vs +3.12%. 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 17.6% for VOE. 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 -63.4% for VOE. 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 0.86. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

VEA charges 0.03% per year while VOE charges 0.05%. On a $10,000 position that is $3 vs $5 annually, a gap of $2 per year that compounds over a long holding period. On income, VEA currently yields 2.57% against 2.31% for VOE.

Holdings Overlap

1.2%overlap

VEA and VOE share 3 holdings out of 3174 unique holdings combined, representing a 1.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VEAWeight in VOEDifference
SLB:CW1.10%1.20%0.10%
HBAN0.06%0.62%0.56%
KR0.01%0.53%0.52%

Frequently Asked Questions

Which is cheaper, VEA or VOE?

VEA has an expense ratio of 0.03% while VOE charges 0.05%. VEA is the cheaper option. On a $10,000 investment, that is $2 per year of difference.

Which performed better, VEA or VOE?

Over the past year VEA returned +29.42% vs +27.33% for VOE, so VEA leads on 1-year performance. Over the longest common window we track (19 years), VEA annualized +3.12% vs +7.98% for VOE. Past performance does not guarantee future results.

Which is riskier, VEA or VOE?

VEA has been the more volatile fund at 17.8% annualized versus 17.6% for VOE. Worst drawdown: VEA -62.9% vs VOE -63.4%.

Should I hold both VEA and VOE?

VEA and VOE have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VEA and VOE?

VEA and VOE share 3 common holdings with a 1.2% weight overlap. Combined, they hold 3174 unique securities.

Which pays a higher dividend, VEA or VOE?

VEA yields 2.57% while VOE yields 2.31%, so VEA currently pays the higher dividend yield.

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