VEA vs VWO
Vanguard FTSE Developed Markets ETF vs Vanguard FTSE Emerging Markets ETF
Which is better, VEA or VWO?
VEA has been ahead.
VEA has a lower expense ratio. VEA led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VEA | VWO |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.06% |
| AUM | $230.3B | $122.0B |
| Dividend Yield | 2.49% | 2.29% |
| Holdings | 3,886 | 6,334 |
| YTD Return | +14.27%Best | +8.65% |
| 1Y Return | +22.38%Best | +13.61% |
| 3Y Return (annualized) | +19.89%Best | +17.22% |
| 5Y Return (annualized) | +9.64%Best | +5.94% |
| Volatility (annualized) | 17.7%Best | 20.3% |
| Max Drawdown | -62.9%Best | -68.3% |
| $10,000 over 5 years | $15,843Best | $13,344 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Jul 20, 2007 | Mar 4, 2005 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jul 26, 2007 to Sep 14, 2026 (19.1 years).
VEA vs VWO growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 19.1 years both funds cover.
VEA vs VWO Performance
Vanguard FTSE Developed Markets ETF (VEA) is an ETF from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is an ETF from Vanguard (US). Over the past year VEA returned +22.38% while VWO returned +13.61%. Year to date, VEA is up 14.27% versus a gain of 8.65% for VWO.
Over three years, VEA compounded at +19.89% per year against +17.22% for VWO; over five years the annualized figures are +9.64% and +5.94% respectively. Across the full 19-year window we track, VEA has the edge at +3.03% annualized vs +2.15%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWO has been the more volatile fund, with annualized monthly volatility of 20.3% compared with 17.7% for VEA. 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 -68.3% for VWO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 VWO 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 2.49% against 2.29% for VWO.
Holdings Overlap
We hold position weights for 3,754 holdings in VEA and 4,688 in VWO, totalling 94.2% and 89.2% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 33 positions appear in both.
33 positions in common, counted across the 3,754 positions we hold weights for in VEA and 4,688 in VWO, against full books of 3,886 and 6,334.
Top Shared Holdings
| Stock | Weight in VEA | Weight in VWO | Difference |
|---|---|---|---|
| MKLMarkel Group Inc | 0.13% | 1.17% | 1.04% |
| SAN:MABanco Santander, S.A Sponsored Adr - Sponsored (1 Ads : 1 Ordinary) | 0.64% | 0.01% | 0.63% |
| WDS:AUWoodside Petroleum Ltd | 0.14% | 0.01% | 0.13% |
| 1060:SASaudi British Bank/The | 0.00% | 0.08% | 0.08% |
| 5880:TWTaiwan Cooperative Financial Holding Co Ltd | 0.00% | 0.07% | 0.07% |
| 603993:SHCMOC Group Ltd | 0.00% | 0.07% | 0.07% |
| 2331:HKLi Ning Co., Ltd. | 0.01% | 0.04% | 0.03% |
| INR:AUIoneer Ltd | 0.00% | 0.05% | 0.05% |
| 0027:HKGalaxy Entertainment Group Ltd | 0.03% | 0.00% | 0.03% |
| JSW:PLJastrzebska Spolka Weglowa Sa | 0.00% | 0.03% | 0.03% |
You are not choosing between two funds in isolation.
Whichever of VEA and VWO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VEA or VWO?
VEA has an expense ratio of 0.03% while VWO charges 0.06%. VEA is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, VEA or VWO?
Over the past year VEA returned +22.38% vs +13.61% for VWO, so VEA leads on 1-year performance. Over the longest common window we track (19 years), VEA annualized +3.03% vs +2.15% for VWO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VEA or VWO?
VWO has been the more volatile fund at 20.3% annualized versus 17.7% for VEA. Worst drawdown: VEA -62.9% vs VWO -68.3%.
Should I hold both VEA and VWO?
VEA and VWO have a monthly-return correlation of 0.86, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VEA or VWO?
VEA yields 2.49% while VWO yields 2.29%, so VEA currently pays the higher dividend yield.
Is VWO better than VEA?
VEA has a lower expense ratio. VEA led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.