VEA vs VTI
Vanguard FTSE Developed Markets ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VEA delivered stronger 1-year returns. VEA offers more diversification with 3,886 holdings.
Side-by-Side Comparison
| Metric | VEA | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $230.3B | $666.9B | |
| Dividend Yield | 2.55% | 1.07% | |
| Holdings | 3,886 | 3,543 | |
| YTD Return | +14.89% | +12.23% | |
| 1Y Return | +27.50% | +20.11% | |
| 3Y Return (annualized) | +20.44% | +20.52% | |
| 5Y Return (annualized) | +9.74% | +11.49% | |
| Volatility (annualized) | 17.7% | 15.3% | |
| Max Drawdown | -62.9% | -56.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 20, 2007 | May 24, 2001 |
VEA vs VTI Performance
Vanguard FTSE Developed Markets ETF (VEA) is a ETF from Vanguard (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year VEA returned +27.50% while VTI returned +20.11%. Year to date, VEA is up 14.89% versus a gain of 12.23% for VTI.
Over three years, VEA compounded at +20.44% per year against +20.52% for VTI; over five years the annualized figures are +9.74% and +11.49% respectively. Across the full 19-year window we track, VTI has the edge at +8.04% annualized vs +3.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEA has been the more volatile fund, with annualized monthly volatility of 17.7% compared with 15.3% for VTI. 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 -56.6% for VTI. 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VEA charges 0.03% per year while VTI charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VEA currently yields 2.55% against 1.07% for VTI.
Holdings Overlap
VEA and VTI share 17 holdings out of 6514 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 VTI?
VEA has an expense ratio of 0.03% while VTI charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VEA or VTI?
Over the past year VEA returned +27.50% vs +20.11% for VTI, so VEA leads on 1-year performance. Over the longest common window we track (19 years), VEA annualized +3.07% vs +8.04% for VTI. Past performance does not guarantee future results.
Which is riskier, VEA or VTI?
VEA has been the more volatile fund at 17.7% annualized versus 15.3% for VTI. Worst drawdown: VEA -62.9% vs VTI -56.6%.
Should I hold both VEA and VTI?
VEA and VTI have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VEA and VTI?
VEA and VTI share 17 common holdings with a 0.2% weight overlap. Combined, they hold 6514 unique securities.
Which pays a higher dividend, VEA or VTI?
VEA yields 2.55% while VTI yields 1.07%, so VEA currently pays the higher dividend yield.
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