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ETF Comparison

VEA vs VXUS: Which Is the Better Pick in 2026?

A head-to-head comparison of Vanguard FTSE Developed Markets ETF and Vanguard Total International Stock ETF covering yield, cost, risk, and income potential.

Data updated July 5, 2026

ETFs115
Total AUM$4484B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is known for offering low-cost, passively managed ETFs that emphasize broad market exposure and long-term investing. The company operates 175 ETFs across diverse fund families including Index, Bond, Equity, Dividend, Income, International, Factor, and ESG strategies, serving investors with various goals from core portfolio building to specialized income generation. Notable for its scale and popular tickers like VB (total U.S. small-cap), BND (total bond market), and VBIAX (international bonds), Vanguard focuses on providing comprehensive, index-based investment solutions with an emphasis on cost efficiency and accessibility.

See our curated list of related YouTube videos on VEA and VXUS.

Side-by-side snapshot

VEAVXUS
Full nameVanguard FTSE Developed Markets ETFVanguard Total International Stock ETF
IssuerVanguardVanguard
Last Close$70.81 as of July 5, 2026$84.84 as of July 5, 2026
Distribution yield2.13%1.82%
Distribution Safety Score8986
Expense ratio0.05%0.05%
AUM$223B$149B
Distribution frequencyQuarterlyQuarterly
Underlying indexFTSE Developed All Cap ex US IndexFTSE Global All Cap ex US Index
ObjectiveTrack the FTSE Developed All Cap ex US Index.Track the FTSE Global All Cap ex US Index, covering non-U.S. developed and emerging stocks.
Asset classEquityEquity
Inception date07/20/200701/26/2011
Beta0.970.92
Last dividend$0.3770$0.3860
Ex-dividend date06/18/202606/18/2026

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

VEA has outpaced VXUS over the trailing twelve months, posting a 27.89% total return against 26.33%. The lead holds up over 10 years too: VEA has compounded at 10.39% a year, against 9.84% for VXUS. Figures are total returns: price change plus every distribution reinvested.

SymbolYTD1Y3Y5Y10YSince Jan 2011Volatility Sharpe Sortino Max drawdown
VEA12.82%27.89%18.92%9.87%10.39%7.60%15.6%0.831.19-13.5%
VXUS11.46%26.33%18.23%8.59%9.84%6.71%15.3%0.811.16-13.6%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 2, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Jan 2011” measures every fund from January 28, 2011 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

VEA (Vanguard FTSE Developed Markets ETF) and VXUS (Vanguard Total International Stock ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

VEA offers the higher yield at 2.13% vs 1.82% for VXUS. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

They track different benchmarks: VEA is linked to FTSE Developed All Cap ex US Index while VXUS tracks FTSE Global All Cap ex US Index, which means their performance drivers differ.

VEA is the larger fund by assets ($223B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, VEA would generate roughly $17.75/month, while VXUS would produce $15.17/month, at current distribution rates. Both pay quarterly distributions.

VEA yield2.13%
VXUS yield1.82%
Monthly diff on $10K$2.58

Cost & efficiency

Over 10 years on $10,000, VEA would cost approximately $50 in fees vs $50 for VXUS (simplified, not compounded). Both charge the same expense ratio.

VEA ER0.05%
VXUS ER0.05%

Strategy & risk

VEA tracks FTSE Developed All Cap ex US Index with an international approach, while VXUS tracks FTSE Global All Cap ex US Index with an international approach. Beta is 0.97 for VEA and 0.92 for VXUS, indicating VXUS is less volatile relative to the market.

VEA beta0.97
VXUS beta0.92

Fund details

VEA is managed by Vanguard (launched 07/20/2007) with $223B in assets. VXUS is managed by Vanguard (launched 01/26/2011) with $149B in assets.

VEA AUM$223B
VXUS AUM$149B

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Frequently asked questions

Is VEA or VXUS better for dividend income?

It depends on your goals. VEA currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between VEA and VXUS?

VEA (Vanguard FTSE Developed Markets ETF) tracks FTSE Developed All Cap ex US Index with an international approach, while VXUS (Vanguard Total International Stock ETF) tracks FTSE Global All Cap ex US Index with an international approach. They are issued by Vanguard and Vanguard respectively.

Can I hold both VEA and VXUS?

Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.

Which has lower fees, VEA or VXUS?

VEA and VXUS both charge the same expense ratio of 0.05%, so neither is cheaper on fees — pick based on yield, strategy, or underlying index instead.

How much income does $10,000 in VEA vs VXUS generate?

At current rates, $10,000 in VEA would generate roughly $17.75 per month ($213.00 annually). The same in VXUS would produce about $15.17 per month ($182.00 annually).

Which has performed better historically, VEA or VXUS?

VEA has outpaced VXUS over the trailing twelve months, posting a 27.89% total return against 26.33%. The lead holds up over 10 years too: VEA has compounded at 10.39% a year, against 9.84% for VXUS. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

VEA vs VXUS — at a glance

Generated June 2026 from current fund data.

Overview

VEA and VXUS are both Vanguard international equity ETFs tracking FTSE indexes, but they differ fundamentally in geographic scope. VEA focuses exclusively on developed markets outside the U.S. (Europe, Japan, Australia, Canada), while VXUS blends developed and emerging markets into a single global ex-U.S. portfolio. Both charge 0.05% in expenses and distribute quarterly.

How they differ

The single biggest difference is emerging-market exposure: VXUS includes meaningful allocations to China, India, Brazil, and other developing economies, while VEA excludes them entirely. This makes VXUS more diversified geographically but also more volatile—its beta of 0.92 sits slightly below VEA's 0.97, though the real distinction lies in sector and country concentration, not systematic risk alone. VEA yields 2.12% against VXUS's 1.81%, a difference driven by developed markets' higher dividend-paying stocks (especially banks and utilities in Europe and Australia). Both funds are enormous ($223B for VEA, $149B for VXUS), so liquidity is not a concern for either.

Who each is best for

VEA: Fits investors who want pure developed-market international exposure and prioritize higher current yield from mature, dividend-heavy economies—particularly those already holding emerging-market exposure through separate positions.

VXUS: Fits investors seeking a single all-in-one international allocation that blends developed and emerging markets, accepting lower near-term yield in exchange for long-term growth potential from developing economies.

Key risks to know

  • Emerging-market concentration in VXUS. The fund's EM holdings amplify exposure to currency swings, geopolitical risk, and regulatory shifts in major positions like China. Developed markets carry lower growth but also lower tail risk.
  • Currency headwinds for both. Neither fund hedges foreign exchange; a stronger dollar erodes returns for U.S. investors, while a weaker dollar boosts them. This swing can easily dwarf the 0.31% yield difference between them over a one-to-three-year horizon.
  • Developed-market economic maturity in VEA. Slower earnings growth and demographic aging in Europe and Japan historically correlate with lower long-term capital appreciation than global equity, even if dividend yields are higher today.
  • Valuation spread between geographies. Emerging markets in VXUS often trade at lower multiples than developed markets in VEA, which can signal either opportunity or justified discount depending on growth expectations and macro conditions.

Bottom line

If you want higher current income from developed-market dividend payers and already own emerging-market exposure elsewhere, VEA's 2.12% yield and pure-developed focus stand out. If you prefer a single international holding that captures both developed and emerging growth, VXUS's broader scope fits better despite the lower yield. Neither is objectively superior—the choice hinges on whether your portfolio already accounts for EM exposure and your tolerance for the structural growth-versus-income tradeoff. Past performance does not predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

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