VEA vs VXUS

Quick Verdict

VEA has a lower expense ratio. VEA delivered stronger 1-year returns. VXUS offers more diversification with 7860 holdings.

Lower Fees: VEAHigher Returns: VEAMore Diversified: VXUS

Side-by-Side Comparison

MetricVEAVXUSWinner
Expense Ratio0.03%0.05%
AUM$230.9B$156.5B
Dividend Yield2.57%2.60%
Holdings3,9188,747
YTD Return+15.07%+13.57%
1Y Return+30.82%+28.78%
3Y Return (annualized)+19.48%+18.63%
5Y Return (annualized)+10.05%+9.05%
Volatility (annualized)17.8%15.1%
Max Drawdown-62.9%-39.9%
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityEquity
InceptionJul 20, 2007Jan 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 +30.82% while VXUS returned +28.78%. Year to date, VEA is up 15.07% versus a gain of 13.57% for VXUS.

Over three years, VEA compounded at +19.48% per year against +18.63% for VXUS; over five years the annualized figures are +10.05% and +9.05% respectively. Across the full 16-year window we track, VXUS has the edge at +4.80% annualized vs +3.09%. 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 2.57% against 2.60% for VXUS.

Holdings Overlap

51.8%overlap

VEA and VXUS share 2659 holdings out of 8210 unique holdings combined, representing a 51.8% weight overlap.

High overlap means holding both may not provide much additional diversification.

Top Shared Holdings

StockWeight in VEAWeight in VXUSDifference
5930:JP2.17%1.58%0.59%
ASML:AS1.76%1.29%0.47%
000660:KR1.23%0.90%0.33%
ROG:SMProProPro
NOVN:SMProProPro
HSBA:LNProProPro
AZN:LNProProPro
NESN:SMProProPro
SHELProProPro
RY:CAProProPro
See all 10 holdings VEA shares with VXUS
Exact weights in each fund and the difference, for every overlapping position.
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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 +30.82% vs +28.78% for VXUS, so VEA leads on 1-year performance. Over the longest common window we track (16 years), VEA annualized +3.09% vs +4.80% 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 2659 common holdings with a 51.8% weight overlap. Combined, they hold 8210 unique securities.

Which pays a higher dividend, VEA or VXUS?

VEA yields 2.57% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.

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