VEA vs VT
Vanguard FTSE Developed Markets ETF vs Vanguard Total World Stock ETF
Quick Verdict
VEA has a lower expense ratio. VEA delivered stronger 1-year returns. VT offers more diversification with 10,133 holdings.
Side-by-Side Comparison
| Metric | VEA | VT | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.06% | |
| AUM | $230.3B | $78.6B | |
| Dividend Yield | 2.55% | 1.60% | |
| Holdings | 3,918 | 10,133 | |
| YTD Return | +16.98% | +14.38% | |
| 1Y Return | +28.54% | +22.71% | |
| 3Y Return (annualized) | +21.17% | +21.08% | |
| 5Y Return (annualized) | +10.32% | +10.94% | |
| Volatility (annualized) | 17.8% | 16.6% | |
| Max Drawdown | -62.9% | -50.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 20, 2007 | Jun 24, 2008 |
VEA vs VT Performance
Vanguard FTSE Developed Markets ETF (VEA) is a ETF from Vanguard (US) and Vanguard Total World Stock ETF (VT) is a ETF from Vanguard (US). Over the past year VEA returned +28.54% while VT returned +22.71%. Year to date, VEA is up 16.98% versus a gain of 14.38% for VT.
Over three years, VEA compounded at +21.17% per year against +21.08% for VT; over five years the annualized figures are +10.32% and +10.94% respectively. Across the full 18-year window we track, VT has the edge at +7.36% annualized vs +3.17%. 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 16.6% for VT. 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 -50.6% for VT. 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 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VEA charges 0.03% per year while VT charges 0.06%. On a $10,000 position that is $3 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, VEA currently yields 2.55% against 1.60% for VT.
Holdings Overlap
VEA and VT share 2878 holdings out of 9794 unique holdings combined, representing a 16.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VEA or VT?
VEA has an expense ratio of 0.03% while VT charges 0.06%. VEA is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VEA or VT?
Over the past year VEA returned +28.54% vs +22.71% for VT, so VEA leads on 1-year performance. Over the longest common window we track (18 years), VEA annualized +3.17% vs +7.36% for VT. Past performance does not guarantee future results.
Which is riskier, VEA or VT?
VEA has been the more volatile fund at 17.8% annualized versus 16.6% for VT. Worst drawdown: VEA -62.9% vs VT -50.6%.
Should I hold both VEA and VT?
VEA and VT have a monthly-return correlation of 0.96, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between VEA and VT?
VEA and VT share 2878 common holdings with a 16.3% weight overlap. Combined, they hold 9794 unique securities.
Which pays a higher dividend, VEA or VT?
VEA yields 2.55% while VT yields 1.60%, so VEA currently pays the higher dividend yield.
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