Generated August 15, 2026.
Figures quoted in this analysis are from its generation date and may lag the live snapshot table above, which always shows the latest data.
Overview
VEA and VXUS are both Vanguard index ETFs tracking non-U.S. equity markets, but they have different geographic scope. VEA tracks developed markets only—Europe, Japan, Australia, and similar economies. VXUS includes developed markets plus emerging markets, adding exposure to China, India, Brazil, and other higher-growth regions. The choice between them hinges on whether you want developed-market stability or broader international diversification.
How they differ
The core difference is geography: VEA excludes emerging markets entirely, while VXUS includes them alongside developed markets. This makes VXUS materially more exposed to growth volatility and currency swings in countries like China and India. VEA's distribution rate of 2.05% tops VXUS's 1.76%, reflecting developed markets' higher dividend yields relative to their emerging-market peers. Both charge the same 0.05% expense ratio and pay quarterly. VEA carries a slightly higher beta of 0.97 versus VXUS's 0.92, suggesting developed markets in this snapshot moved a bit more in line with the overall market; however, the inclusion of emerging-market volatility in VXUS may not be fully captured in that historical figure.
Who each is best for
- VEA: Fits investors seeking concentrated exposure to stable, developed economies with established dividend-paying companies. Appeals to income-focused strategies that prioritize higher current yield and lower economic volatility.
- VXUS: Fits investors wanting comprehensive international coverage that captures growth from emerging markets. Suits long-term allocators who accept emerging-market volatility in exchange for broader geographic and economic diversification.
Key risks to know
- Emerging-market currency and political risk (VXUS specific). VXUS's emerging-market holdings expose investors to currency fluctuations and policy shifts in less-developed financial systems. Developed-market exposure in VEA comes with more stable currencies and regulatory environments.
- Developed-market secular headwinds (VEA specific). VEA's focus on mature economies—particularly Europe and Japan—carries demographic and growth-rate headwinds that may constrain long-term returns relative to global baskets that include faster-growing regions.
- Overlapping core holdings with different weights. Both track FTSE indexes and hold many of the same developed-market names; their returns will often move in tandem, but their emerging-market exposure (or lack thereof) will diverge during periods of EM strength or weakness.
- Currency exposure. Both funds hold significant foreign-currency positions; broad dollar strength erodes returns even if underlying stocks hold steady.
Bottom line
If you want higher income and lower volatility tied to established developed markets, VEA's 2.05% yield and maturer geographic mix stand out. If you're building a long-term international sleeve and can tolerate emerging-market swings, VXUS offers exposure to faster-growth regions at the same cost. Past performance does not guarantee future results, and your choice may depend on how much emerging-market volatility fits your overall portfolio.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.