VEA vs VWO
VEA vs VWO
Vanguard FTSE Developed Markets ETF vs Vanguard FTSE Emerging Markets ETF
Quick Verdict
VEA has a lower expense ratio. VEA delivered stronger 1-year returns. VWO offers more diversification with 3979 holdings.
Side-by-Side Comparison
| Metric | VEA | VWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.06% | |
| AUM | $230.9B | $122.3B | |
| Dividend Yield | 2.57% | 2.37% | |
| Holdings | 3,918 | 6,334 | |
| YTD Return | +15.07% | +9.45% | |
| 1Y Return | +30.82% | +23.24% | |
| 3Y Return (annualized) | +19.48% | +16.43% | |
| 5Y Return (annualized) | +10.05% | +6.27% | |
| Volatility (annualized) | 17.8% | 20.1% | |
| Max Drawdown | -62.9% | -68.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 20, 2007 | Mar 4, 2005 |
VEA vs VWO Performance
Vanguard FTSE Developed Markets ETF (VEA) is a ETF from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is a ETF from Vanguard (US). Over the past year VEA returned +30.82% while VWO returned +23.24%. Year to date, VEA is up 15.07% versus a gain of 9.45% for VWO.
Over three years, VEA compounded at +19.48% per year against +16.43% for VWO; over five years the annualized figures are +10.05% and +6.27% respectively. Across the full 19-year window we track, VWO has the edge at +4.96% annualized vs +3.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWO has been the more volatile fund, with annualized monthly volatility of 20.1% compared with 17.8% 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 worth weighing if you expect to sell during market stress rather than ride it out.
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 2.57% against 2.37% for VWO.
Holdings Overlap
VEA and VWO share 29 holdings out of 6959 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VEA | Weight in VWO | Difference |
|---|---|---|---|
| SANB11:BV | 0.58% | 0.01% | 0.57% |
| WDS:AU | 0.12% | 0.01% | 0.11% |
| WHLJ:ZA | 0.10% | 0.03% | 0.07% |
| 603993:SH | Pro | Pro | Pro |
| 1060:SA | Pro | Pro | Pro |
| 5880:TW | Pro | Pro | Pro |
| BIMAS:TR | Pro | Pro | Pro |
| 2379:TW | Pro | Pro | Pro |
| 2331:HK | Pro | Pro | Pro |
| 0027:HK | Pro | Pro | Pro |
See all 10 holdings VEA shares with VWO Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
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. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VEA or VWO?
Over the past year VEA returned +30.82% vs +23.24% for VWO, so VEA leads on 1-year performance. Over the longest common window we track (19 years), VEA annualized +3.09% vs +4.96% for VWO. Past performance does not guarantee future results.
Which is riskier, VEA or VWO?
VWO has been the more volatile fund at 20.1% annualized versus 17.8% 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 combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VEA and VWO?
VEA and VWO share 29 common holdings with a 0.3% weight overlap. Combined, they hold 6959 unique securities.
Which pays a higher dividend, VEA or VWO?
VEA yields 2.57% while VWO yields 2.37%, so VEA currently pays the higher dividend yield.
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