VEA vs VXUS
Vanguard FTSE Developed Markets ETF vs Vanguard Total International Stock ETF
Quick Verdict
VEA has a lower expense ratio. VEA delivered stronger 1-year returns. VXUS offers more diversification with 8,747 holdings.
Side-by-Side Comparison
| Metric | VEA | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.05% | |
| AUM | $230.3B | $158.1B | |
| Dividend Yield | 2.55% | 2.59% | |
| Holdings | 3,918 | 8,747 | |
| YTD Return | +16.41% | +14.56% | |
| 1Y Return | +27.80% | +25.24% | |
| 3Y Return (annualized) | +21.40% | +20.38% | |
| 5Y Return (annualized) | +10.32% | +9.32% | |
| Volatility (annualized) | 17.8% | 15.1% | |
| Max Drawdown | -62.9% | -39.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 20, 2007 | Jan 26, 2011 |
VEA vs VXUS Performance
Vanguard FTSE Developed Markets ETF (VEA) is a ETF from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VEA returned +27.80% while VXUS returned +25.24%. Year to date, VEA is up 16.41% versus a gain of 14.56% for VXUS.
Over three years, VEA compounded at +21.40% per year against +20.38% for VXUS; over five years the annualized figures are +10.32% and +9.32% respectively. Across the full 16-year window we track, VXUS has the edge at +4.84% 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 15.1% for VXUS. 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 -39.9% for VXUS. 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 0.99. 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 VXUS 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 2.59% for VXUS.
Holdings Overlap
VEA and VXUS share 3215 holdings out of 8398 unique holdings combined, representing a 51.6% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, VEA or VXUS?
VEA has an expense ratio of 0.03% while VXUS 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 VXUS?
Over the past year VEA returned +27.80% vs +25.24% for VXUS, so VEA leads on 1-year performance. Over the longest common window we track (16 years), VEA annualized +3.14% vs +4.84% for VXUS. Past performance does not guarantee future results.
Which is riskier, VEA or VXUS?
VEA has been the more volatile fund at 17.8% annualized versus 15.1% for VXUS. Worst drawdown: VEA -62.9% vs VXUS -39.9%.
Should I hold both VEA and VXUS?
VEA and VXUS have a monthly-return correlation of 0.99, 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 VXUS?
VEA and VXUS share 3215 common holdings with a 51.6% weight overlap. Combined, they hold 8398 unique securities.
Which pays a higher dividend, VEA or VXUS?
VEA yields 2.55% while VXUS yields 2.59%, so VXUS currently pays the higher dividend yield.
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