VEA vs VOO
Vanguard FTSE Developed Markets ETF vs Vanguard S&P 500 ETF
Quick Verdict
VEA delivered stronger 1-year returns. VEA offers more diversification with 3008 holdings.
Side-by-Side Comparison
| Metric | VEA | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $230.9B | $979.0B | |
| Dividend Yield | 2.57% | 1.09% | |
| Holdings | 3,918 | 509 | |
| YTD Return | +15.52% | +13.79% | |
| 1Y Return | +29.08% | +23.01% | |
| 3Y Return (annualized) | +19.97% | +21.78% | |
| 5Y Return (annualized) | +10.09% | +13.39% | |
| Volatility (annualized) | 17.8% | 14.1% | |
| Max Drawdown | -62.9% | -34.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 20, 2007 | Sep 7, 2010 |
VEA vs VOO Performance
Vanguard FTSE Developed Markets ETF (VEA) is a ETF from Vanguard (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year VEA returned +29.08% while VOO returned +23.01%. Year to date, VEA is up 15.52% versus a gain of 13.79% for VOO.
Over three years, VEA compounded at +19.97% per year against +21.78% for VOO; over five years the annualized figures are +10.09% and +13.39% respectively. Across the full 16-year window we track, VOO has the edge at +13.57% 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 14.1% for VOO. 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 -34.3% for VOO. 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 VOO charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VEA currently yields 2.57% against 1.09% for VOO.
Holdings Overlap
VEA and VOO share 4 holdings out of 3509 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VEA or VOO?
VEA has an expense ratio of 0.03% while VOO charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VEA or VOO?
Over the past year VEA returned +29.08% vs +23.01% for VOO, so VEA leads on 1-year performance. Over the longest common window we track (16 years), VEA annualized +3.11% vs +13.57% for VOO. Past performance does not guarantee future results.
Which is riskier, VEA or VOO?
VEA has been the more volatile fund at 17.8% annualized versus 14.1% for VOO. Worst drawdown: VEA -62.9% vs VOO -34.3%.
Should I hold both VEA and VOO?
VEA and VOO 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 VOO?
VEA and VOO share 4 common holdings with a 0.2% weight overlap. Combined, they hold 3509 unique securities.
Which pays a higher dividend, VEA or VOO?
VEA yields 2.57% while VOO yields 1.09%, so VEA currently pays the higher dividend yield.
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