VEA vs VUG
Vanguard FTSE Developed Markets ETF vs Vanguard Growth ETF
Quick Verdict
VEA delivered stronger 1-year returns. VEA offers more diversification with 3008 holdings.
Side-by-Side Comparison
| Metric | VEA | VUG | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $230.9B | $223.2B | |
| Dividend Yield | 2.57% | 0.47% | |
| Holdings | 3,918 | 155 | |
| YTD Return | +16.14% | +10.57% | |
| 1Y Return | +29.87% | +18.21% | |
| 3Y Return (annualized) | +20.12% | +24.26% | |
| 5Y Return (annualized) | +10.27% | +13.05% | |
| Volatility (annualized) | 17.8% | 16.5% | |
| Max Drawdown | -62.9% | -51.4% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 20, 2007 | Jan 26, 2004 |
VEA vs VUG Performance
Vanguard FTSE Developed Markets ETF (VEA) is a ETF from Vanguard (US) and Vanguard Growth ETF (VUG) is a ETF from Vanguard (US). Over the past year VEA returned +29.87% while VUG returned +18.21%. Year to date, VEA is up 16.14% versus a gain of 10.57% for VUG.
Over three years, VEA compounded at +20.12% per year against +24.26% for VUG; over five years the annualized figures are +10.27% and +13.05% respectively. Across the full 19-year window we track, VUG has the edge at +11.30% annualized vs +3.14%. 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 16.5% for VUG. 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 -51.4% for VUG. 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VEA charges 0.03% per year while VUG charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VEA currently yields 2.57% against 0.47% for VUG.
Holdings Overlap
VEA and VUG share 1 holdings out of 3153 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VEA | Weight in VUG | Difference |
|---|---|---|---|
| WCN:CA | 0.14% | 0.14% | 0.00% |
Frequently Asked Questions
Which is cheaper, VEA or VUG?
VEA has an expense ratio of 0.03% while VUG charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VEA or VUG?
Over the past year VEA returned +29.87% vs +18.21% for VUG, so VEA leads on 1-year performance. Over the longest common window we track (19 years), VEA annualized +3.14% vs +11.30% for VUG. Past performance does not guarantee future results.
Which is riskier, VEA or VUG?
VEA has been the more volatile fund at 17.8% annualized versus 16.5% for VUG. Worst drawdown: VEA -62.9% vs VUG -51.4%.
Should I hold both VEA and VUG?
VEA and VUG have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VEA and VUG?
VEA and VUG share 1 common holdings with a 0.1% weight overlap. Combined, they hold 3153 unique securities.
Which pays a higher dividend, VEA or VUG?
VEA yields 2.57% while VUG yields 0.47%, so VEA currently pays the higher dividend yield.
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