VEA vs VWO: Developed or Emerging Markets — What's the Difference?
These aren't competitors — they cover completely different parts of the world.
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.
Both funds trade commission-free at every major brokerage. Where to buy them →
📋 VEA vs VWO: Key Facts Side by Side
| Metric | VEA | VWO |
|---|---|---|
| Fund Name | Vanguard FTSE Developed Markets Index Fund ETF Shares | Vanguard FTSE Emerging Markets Index Fund ETF Shares |
| Issuer | Vanguard | Vanguard |
| Tracks Index | FTSE Developed All Cap ex US | FTSE Emerging Markets All Cap China A Inclusion |
| Expense Ratio | 0.03% ✓ | 0.08% |
| Cost per $10K/yr | $3.00 | $8.00 |
| AUM | $304.3B | $164.7B |
| Holdings | 3,854 | 4,700 |
| Inception | 2007 | 2005 |
| 1-Year Return | +15.81% | +9.94% |
| 3-Year Return | +20.52% | +18.37% |
| 5-Year Return | +10.13% | +6.52% |
| Dividend Yield | 2.41% | 2.05% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.01% | 0.01% |
AUM and returns updated Oct 14, 2026 from ETF BFF database; expense ratios verified against issuer filings. Returns are annualised. Not investment advice.
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📊 VEA vs VWO: Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Which Fund Fits Which Investor?
- want the lowest fees: saves ~$5/yr per $10K vs VWO
- want geographic diversification beyond US stocks
- want the specific exposure defined by the FTSE Emerging Markets All Cap China A Inclusion
💰 What the Fee Difference Actually Costs
Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.
Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.
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Side-by-side holdings overlap, sector breakdown, and live performance tabs, all in one place.
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