VEA vs VXF
Vanguard FTSE Developed Markets ETF vs Vanguard Extended Market ETF
Quick Verdict
VEA has a lower expense ratio. VEA delivered stronger 1-year returns. VEA offers more diversification with 3,886 holdings.
Side-by-Side Comparison
| Metric | VEA | VXF | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.05% | |
| AUM | $230.3B | $30.5B | |
| Dividend Yield | 2.55% | 1.03% | |
| Holdings | 3,886 | 3,385 | |
| YTD Return | +14.89% | +13.09% | |
| 1Y Return | +27.50% | +17.51% | |
| 3Y Return (annualized) | +20.44% | +18.02% | |
| 5Y Return (annualized) | +9.74% | +5.74% | |
| Volatility (annualized) | 17.7% | 18.7% | |
| Max Drawdown | -62.9% | -59.4% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 20, 2007 | Dec 27, 2001 |
VEA vs VXF Performance
Vanguard FTSE Developed Markets ETF (VEA) is a ETF from Vanguard (US) and Vanguard Extended Market ETF (VXF) is a ETF from Vanguard (US). Over the past year VEA returned +27.50% while VXF returned +17.51%. Year to date, VEA is up 14.89% versus a gain of 13.09% for VXF.
Over three years, VEA compounded at +20.44% per year against +18.02% for VXF; over five years the annualized figures are +9.74% and +5.74% respectively. Across the full 19-year window we track, VXF has the edge at +8.89% annualized vs +3.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXF has been the more volatile fund, with annualized monthly volatility of 18.7% 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 -59.4% for VXF. 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VEA charges 0.03% per year while VXF charges 0.05%. On a $10,000 position that is $3 vs $5 annually, a gap of $2 per year that compounds over a long holding period. On income, VEA currently yields 2.55% against 1.03% for VXF.
Holdings Overlap
VEA and VXF share 16 holdings out of 7023 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VEA or VXF?
VEA has an expense ratio of 0.03% while VXF charges 0.05%. VEA is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VEA or VXF?
Over the past year VEA returned +27.50% vs +17.51% for VXF, so VEA leads on 1-year performance. Over the longest common window we track (19 years), VEA annualized +3.07% vs +8.89% for VXF. Past performance does not guarantee future results.
Which is riskier, VEA or VXF?
VXF has been the more volatile fund at 18.7% annualized versus 17.7% for VEA. Worst drawdown: VEA -62.9% vs VXF -59.4%.
Should I hold both VEA and VXF?
VEA and VXF have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VEA and VXF?
VEA and VXF share 16 common holdings with a 0.4% weight overlap. Combined, they hold 7023 unique securities.
Which pays a higher dividend, VEA or VXF?
VEA yields 2.55% while VXF yields 1.03%, so VEA currently pays the higher dividend yield.
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