# VEA vs VXUS: fees, holdings and returns compared

> VEA vs VXUS: 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 developed countries outside the US, such as Japan, the UK, Canada and much of Europe. VXUS holds those plus emerging markets such as China, India, Taiwan and Brazil. VXUS is the wider fund, with about 8,700 companies. Over the same dates since January 2011, VEA returned about 7.4% a year and VXUS returned about 6.5% 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 0.05%.
- VEA started trading in July 2007. VXUS started in January 2011.
- Worst drops since 2011: VEA −35.7%, VXUS −36.0%.
- Daily correlation: 0.99 (1 means they always move together).

## What is the difference between VEA and VXUS?

The difference is emerging markets. VEA leaves them out. VXUS includes them at their size in the world market, roughly a quarter of the fund. Emerging markets can swing more and depend more on local politics and currencies, so VXUS has had a little more of both. When emerging markets lead, VXUS tends to do better, and when they lag, VEA does.

| Fact | VEA | VXUS |
| --- | --- | --- |
| Full name | Vanguard FTSE Developed Markets ETF | Vanguard Total International Stock ETF |
| Issuer | Vanguard | Vanguard |
| Expense ratio | 0.03% a year | 0.05% a year |
| Started trading | July 20, 2007 | January 26, 2011 |
| Tracks | FTSE Developed All Cap ex US Index | FTSE Global All Cap ex US Index |
| Holdings | 3,903 holdings as of September 30, 2026 | 8,740 holdings as of August 31, 2026 |
| Type | International stocks, ETF | International stocks, ETF |

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

## Is VEA or VXUS cheaper?

VEA costs less: 0.03% a year against 0.05%. On $10,000, that is about $3 a year for VEA and $5 for VXUS. The fund takes its fee out of its own value a little each day, so you never get a bill.

## VEA vs VXUS performance over the same dates

Both funds are measured from January 2011 to October 2026, the dates both traded. VEA returned about 7.4% a year and VXUS returned about 6.5% a year. VEA came out ahead over this period, which does not mean it will again.

| Measure | VEA | VXUS |
| --- | --- | --- |
| $10,000 grew to | $30,578 | $26,930 |
| Total return | 205.8% | 169.3% |
| Return per year (CAGR) | 7.4% | 6.5% |
| Worst drop from a high | −35.7% | −36.0% |
| Volatility (how much it swings) | 18.0% | 17.7% |
| Last 12 months | 17.0% | 14.6% |
| Last 3 years, per year | 21.9% | 21.0% |
| Last 5 years, per year | 9.3% | 8.2% |
| Last 10 years, per year | 9.8% | 9.1% |

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 VXUS returns by year

| Year | VEA | VXUS |
| --- | --- | --- |
| 2026 (part of the year) | 12.8% | 11.8% |
| 2025 | 35.2% | 32.4% |
| 2024 | 3.1% | 5.1% |
| 2023 | 17.9% | 15.9% |
| 2022 | −15.3% | −16.1% |
| 2021 | 11.7% | 9.0% |
| 2020 | 9.7% | 10.7% |
| 2019 | 22.6% | 21.8% |
| 2018 | −14.8% | −14.4% |
| 2017 | 26.4% | 27.5% |
| 2016 | 2.6% | 4.8% |
| 2015 | −0.4% | −4.2% |
| 2014 | −6.0% | −4.7% |
| 2013 | 21.8% | 14.6% |
| 2012 | 18.6% | 18.6% |
| 2011 (part of the year) | −13.4% | −14.4% |

## Which fell further in bad times?

A drawdown is how far a fund falls from its last high point. VEA's worst fall was −35.7%, from January 26, 2018 to March 23, 2020. It got back to that high on November 16, 2020.

VXUS's worst fall was −36.0%, from January 26, 2018 to March 23, 2020. It got back to that high on November 16, 2020.

Their daily moves had a correlation of 0.99. A correlation of 1 means two funds always move up and down together. Near 0 means they move on their own. So holding both adds little variety.

## Why people choose VEA or VXUS

**VEA.** People who want only rich countries outside the US, or hold emerging markets in a separate fund, tend to pick VEA.

**VXUS.** People who want every country outside the US in one fund tend to pick VXUS.

## Strategies that hold VEA or VXUS

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)
- [Bold Asset Allocation (BAA)](https://tactfolio.com/strategies/bold-asset-allocation.md), by Wouter Keller, 2022 (holds VEA)
- [Bold Asset Allocation G4 (BAA aggressive)](https://tactfolio.com/strategies/bold-asset-allocation-g4.md), by Wouter Keller, 2022 (holds VEA)
- [Three-Fund Portfolio (Taylor Larimore, Bogleheads)](https://tactfolio.com/strategies/three-fund-portfolio.md), by Taylor Larimore, 2018 (holds VXUS)

## Other funds like VEA and VXUS

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 [VXUS alternatives](https://tactfolio.com/alternatives/VXUS.md).

## Test a mix of VEA and VXUS

Open the [builder](https://tactfolio.com/builder), add VEA and VXUS, 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 [VXUS](https://tactfolio.com/etf/VXUS.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

### Does VXUS include VEA?

Mostly. VXUS holds nearly all the developed-market companies VEA holds, plus thousands of companies in emerging markets.

### Is VEA plus VWO the same as VXUS?

Close. VEA holds developed markets and VWO emerging markets, so together they cover much the same ground as VXUS. You choose the mix yourself instead of the fund doing it.

### Which is cheaper, VEA or VXUS?

VEA costs less: 0.03% a year against 0.05%. Fees come from each issuer and were checked on October 16, 2026.

### Which did better, VEA or VXUS?

From January 2011 to October 2026, VEA returned about 7.4% a year and VXUS returned about 6.5% a year, with dividends reinvested. Their worst drops were −35.7% and −36.0%. 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 Total International Stock ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vxus)

> 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.