🤝 BFF Take
Not an Either/Or — They Cover Different Markets
VEA and VWO aren't really an either/or decision — they cover different markets with different risk profiles. VEA gives you developed-market stability (Europe, Japan, Australia, Canada) with lower volatility. VWO gives you emerging-market growth potential (China, India, Brazil, Taiwan) with higher volatility and political risk. Many investors hold both as part of an international allocation. If you want one fund for all international exposure, VXUS holds both.
📋 Quick Takeaways
🌍VEA = Europe, Japan, Canada, Australia — developed-market stability. VWO = China, India, Brazil, Taiwan — higher growth, higher risk.
💰VEA costs 0.05%; VWO costs 0.08% — both are cheap, but you're paying slightly more for emerging market exposure
🎯VXUS holds both in one fund (~80% developed, ~20% emerging) if you don't want to manage the split yourself
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Reviewed by a CFA® Charterholder · Data updated Jun 2026 · Educational only, not financial advice
VEA
Vanguard FTSE Developed Markets ETF
VWO
Vanguard FTSE Emerging Markets ETF
📋 VEA vs VWO — Key Facts Side by Side
| Metric |
VEA |
VWO |
| Fund Name |
Vanguard FTSE Developed Markets ETF |
Vanguard FTSE Emerging Markets ETF |
| Issuer |
Vanguard |
Vanguard |
| Tracks Index |
FTSE Developed All Cap ex US |
FTSE Emerging Markets All Cap China A Inclusion |
| Expense Ratio |
0.05% ✓ |
0.08% |
| Cost per $10K/yr |
$5.00 |
$8.00 |
| AUM |
$120B+ |
$80B+ |
| Holdings |
3,854 |
4,700 |
| Inception |
2007 |
2005 |
| 1-Year Return |
+12.40% |
+8.60% |
| 3-Year Return |
+6.10% |
+1.20% |
| 5-Year Return |
+7.80% |
+3.40% |
| Avg Bid-Ask Spread |
0.01% |
0.01% |
Data from ETF BFF database. Returns are annualised. Not investment advice.
📊 VEA vs VWO — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Should You Buy VEA or VWO?
Choose if...
VEA
- You want the lowest fees — saves ~$3/yr per $10K vs VWO
- You want geographic diversification beyond US stocks
Choose if...
VWO
- You already use Vanguard and prefer staying within their fund family
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❓ VEA vs VWO — Frequently Asked Questions
Is VEA or VWO better?
They serve different purposes. VEA is lower risk, tracking 3,800+ stocks in developed economies like Japan, the UK, Canada, and France. VWO has higher growth potential, tracking 4,700+ stocks in China, India, Brazil, and Taiwan — but with higher volatility and political risk. Most investors with an international allocation should consider holding both.
What countries does VEA cover?
VEA covers Japan (~20%), UK (~14%), Canada (~10%), France, Germany, Australia, Switzerland, and other developed economies. It excludes the US and all emerging markets.
Is emerging markets worth the risk in VWO?
It depends on your time horizon and risk tolerance. Emerging markets have underperformed developed markets for much of the 2010s but have shown stronger growth over longer periods. India in particular represents a growing portion of VWO. At a minimum, they provide currency and geographic diversification from US-heavy portfolios.
New to ETF investing? See answers to the most common ETF questions →
ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.