# VEA vs VWO: fees, holdings and returns compared

> VEA vs VWO: what each ETF holds, what it costs, and how both did over the same dates, with yearly returns and worst drops.

VEA holds companies in rich countries outside the US, such as Japan, the UK, Canada and much of Europe. VWO holds companies in emerging markets such as China, India, Taiwan and Brazil. They hold no stocks in common. Over the same dates since July 2007, VEA returned about 5.1% a year and VWO returned about 4.0% a year.

Written by [the Tactfolio research team](https://tactfolio.com/about/editorial-policy). Fund facts checked October 16, 2026. Prices through October 20, 2026.

## Key points

- VEA costs less: 0.03% a year against 0.06%.
- VEA started trading in July 2007. VWO started in March 2005.
- Worst drops since 2007: VEA −60.7%, VWO −67.7%.
- Daily correlation: 0.87 (1 means they always move together).

## What is the difference between VEA and VWO?

VEA and VWO split the world outside the US in two. Emerging markets have faster-growing economies but also more political risk and bigger currency swings, and their stock markets have risen and fallen more sharply. Developed markets have tended to be steadier. When emerging markets lead, as they did in the 2000s, VWO tends to do better. Both charge low fees.

| Fact | VEA | VWO |
| --- | --- | --- |
| Full name | Vanguard FTSE Developed Markets ETF | Vanguard FTSE Emerging Markets ETF |
| Issuer | Vanguard | Vanguard |
| Expense ratio | 0.03% a year | 0.06% a year |
| Started trading | July 20, 2007 | March 4, 2005 |
| Tracks | FTSE Developed All Cap ex US Index | FTSE Emerging Markets All Cap China A Inclusion Index |
| Holdings | 3,903 holdings as of September 30, 2026 | 6,507 holdings as of September 30, 2026 |
| Type | International stocks, ETF | Emerging market stocks, ETF |

Fund facts checked on the [Vanguard VEA page](https://investor.vanguard.com/investment-products/etfs/profile/vea) and the [Vanguard VWO page](https://investor.vanguard.com/investment-products/etfs/profile/vwo).

## Is VEA or VWO cheaper?

VEA costs less: 0.03% a year against 0.06%. On $10,000, that is about $3 a year for VEA and $6 for VWO. The fund takes its fee out of its own value a little each day, so you never get a bill.

## VEA vs VWO performance over the same dates

Both funds are measured from July 2007 to October 2026, the dates both traded. VEA returned about 5.1% a year and VWO returned about 4.0% a year. VEA came out ahead over this period, which does not mean it will again.

| Measure | VEA | VWO |
| --- | --- | --- |
| $10,000 grew to | $25,956 | $21,163 |
| Total return | 159.6% | 111.6% |
| Return per year (CAGR) | 5.1% | 4.0% |
| Worst drop from a high | −60.7% | −67.7% |
| Volatility (how much it swings) | 21.5% | 26.4% |
| Last 12 months | 17.0% | 8.3% |
| Last 3 years, per year | 21.9% | 18.7% |
| Last 5 years, per year | 9.3% | 5.3% |
| Last 10 years, per year | 9.8% | 7.3% |

Prices through October 20, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

## VEA and VWO returns by year

| Year | VEA | VWO |
| --- | --- | --- |
| 2026 (part of the year) | 12.8% | 8.7% |
| 2025 | 35.2% | 25.6% |
| 2024 | 3.1% | 10.6% |
| 2023 | 17.9% | 9.3% |
| 2022 | −15.3% | −18.0% |
| 2021 | 11.7% | 1.3% |
| 2020 | 9.7% | 15.2% |
| 2019 | 22.6% | 20.8% |
| 2018 | −14.8% | −14.8% |
| 2017 | 26.4% | 31.5% |
| 2016 | 2.6% | 12.2% |
| 2015 | −0.4% | −15.8% |
| 2014 | −6.0% | 0.0% |
| 2013 | 21.8% | −4.9% |
| 2012 | 18.6% | 19.2% |
| 2011 | −12.3% | −18.8% |
| 2010 | 8.3% | 19.5% |
| 2009 | 27.5% | 76.3% |
| 2008 | −40.6% | −52.5% |
| 2007 (part of the year) | 2.3% | 13.9% |

## Which fell further in bad times?

A drawdown is how far a fund falls from its last high point. VEA's worst fall was −60.7%, from October 31, 2007 to March 9, 2009. It got back to that high on May 27, 2014.

VWO's worst fall was −67.7%, from October 31, 2007 to November 20, 2008. It got back to that high on September 11, 2017.

Their daily moves had a correlation of 0.87. A correlation of 1 means two funds always move up and down together. Near 0 means they move on their own. So they often move together, but not always.

## Why people choose VEA or VWO

**VEA.** People who want companies in rich countries outside the US tend to pick VEA.

**VWO.** People who want companies in faster-growing economies, and accept bigger swings, tend to pick VWO.

## Strategies that hold VEA or VWO

These classic strategies hold one or both at least some of the time. Each is a set of written rules you can open, test and copy.

- [Hybrid Asset Allocation (HAA)](https://tactfolio.com/strategies/hybrid-asset-allocation.md), by Wouter Keller and JW Keuning, 2023 (holds VEA and VWO)
- [Bold Asset Allocation (BAA)](https://tactfolio.com/strategies/bold-asset-allocation.md), by Wouter Keller, 2022 (holds VEA and VWO)
- [Bold Asset Allocation G4 (BAA aggressive)](https://tactfolio.com/strategies/bold-asset-allocation-g4.md), by Wouter Keller, 2022 (holds VEA and VWO)
- [Defensive Asset Allocation (DAA)](https://tactfolio.com/strategies/defensive-asset-allocation.md), by Wouter Keller and JW Keuning, 2018 (holds VWO)
- [Mama Bear Portfolio (Muscular Portfolios)](https://tactfolio.com/strategies/mama-bear-portfolio.md), by Brian Livingston, 2018 (holds VWO)
- [Papa Bear Portfolio (Muscular Portfolios)](https://tactfolio.com/strategies/papa-bear-portfolio.md), by Brian Livingston, 2018 (holds VWO)
- [Kipnis Defensive Adaptive Asset Allocation (KDA)](https://tactfolio.com/strategies/kipnis-defensive-asset-allocation.md), by Ilya Kipnis, 2019 (holds VWO)
- [Resilient Asset Allocation (Keller’s RAA)](https://tactfolio.com/strategies/resilient-asset-allocation.md), by Wouter J. Keller, 2020 (holds VWO)

## Other funds like VEA and VWO

Each fund has more funds that hold the same kind of investments, ranked by how closely they move with it: [VEA alternatives](https://tactfolio.com/alternatives/VEA.md) and [VWO alternatives](https://tactfolio.com/alternatives/VWO.md).

## Test a mix of VEA and VWO

Open the [builder](https://tactfolio.com/builder), add VEA and VWO, and give each a weight, such as 50% and 50%. The backtest shows how the mix would have done, with its worst drop, on daily prices. You can also add a rule, for example to switch between them, and compare. Read the full pages for [VEA](https://tactfolio.com/etf/VEA.md) and [VWO](https://tactfolio.com/etf/VWO.md), or see [more ETF comparisons](https://tactfolio.com/etf-comparisons.md).

## The details

Both funds use Tactfolio's stored daily prices, adjusted for splits, with dividends reinvested. They are compared only on days both traded, starting the later fund's first day, so neither gets a head start. Correlation uses daily returns over the same days. Read [what a backtest simulates](https://tactfolio.com/docs/backtests.md) for more on these measures.

## Research and test it

- [What is an ETF](https://tactfolio.com/learn/what-is-an-etf): An ETF is a fund that trades like a stock. Learn how ETFs work, what they cost, the main types, and the risks, with SEC sources.
- [Momentum strategy](https://tactfolio.com/learn/momentum-strategy): A momentum strategy buys recent winners by a written rule.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.
- [Backtesting](https://tactfolio.com/backtesting): Free backtesting software for stocks, ETFs, and crypto perps.

## Common questions

### Do VEA and VWO overlap?

No. VEA holds developed markets and VWO emerging markets, so together they cover the world outside the US.

### Is South Korea in VEA or VWO?

VEA. FTSE, whose indexes both funds follow, counts South Korea as a developed market.

### Which is cheaper, VEA or VWO?

VEA costs less: 0.03% a year against 0.06%. Fees come from each issuer and were checked on October 16, 2026.

### Which did better, VEA or VWO?

From July 2007 to October 2026, VEA returned about 5.1% a year and VWO returned about 4.0% a year, with dividends reinvested. Their worst drops were −60.7% and −67.7%. Past returns do not tell you what comes next.

## Sources

- [Vanguard: Vanguard FTSE Developed Markets ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vea)
- [Vanguard: Vanguard FTSE Emerging Markets ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vwo)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.