VEA vs VWO: Vanguard FTSE Developed Markets ETF and Vanguard FTSE Emerging Markets ETF compared

Over the past five years, $10,000 in VEA grew to $15,989, against $13,657 in VWO. Both fell about as far at their worst (−29%).

etf head-to-headdividends reinvesteddata through Sep 2026

growth of $10,000
as of Sep 2026VEA $15,989VWO $13,657

the gap between themVEA ahead by $2,332

VEA solid · VWO dashed · weekly closes, dividends reinvested

who comes out aheadVEA 2 · 1 VWO

VEA wins 2 of 4. Which matters depends on what you need it for.

  • Grew more over five yearsVEA +60% · VWO +37%Vanguard FTSE Developed Markets ETF logoVEA
  • Fell less at its worstVEA −29% · VWO −29%tie
  • Calmer rideVEA 17% vol · VWO 16% volVanguard FTSE Emerging Markets ETF logoVWO
  • Cheaper to holdVEA 0.03% a year · VWO 0.06% a yearVanguard FTSE Developed Markets ETF logoVEA

move together · correlation 0.81

01The numbers

Side by side, line by line

head to head11 lines
VEA and VWO compared on price, size, returns, risk and cost
MetricVanguard FTSE Developed Markets ETF logoVEAVanguard FTSE Emerging Markets ETF logoVWO
Price$71.38$60.01
Fund size$323.82B$168.36B
1-year return+22.8% (ahead)+13.8%
3-year return, a year+19.8% (ahead)+17.5%
5-year return, a year+9.8% (ahead)+6.4%
Volatility, a year17%16% (ahead)
Worst drawdown−29%−29%
Worst week−8.5%Mar 2025−7.0% (ahead)Mar 2025
Beta0.980.75
Dividend yield2.49%2.29%
Expense ratio0.03% (ahead)0.06%
marks the side ahead on lines with a direction: higher return, lower volatility, shallower fall, lower fee
02Together

Do VEA and VWO move together?

correlationmove together
0.81Move together: most weeks they go the same way. Owning both spreads company risk, not market risk.

Correlation compares VEA’s and VWO’s weekly returns from Sep 2021 to Sep 2026. Two holdings near +1 fall on the same weeks, so owning both doesn’t cushion anything. Your portfolio has more than two lines, and Portfolio Terminal runs this check across every pair you hold.

Pearson correlation of weekly returns|+1 always together, 0 unrelated, −1 always opposite
03Drawdowns

How far each one fell

drawdownsbelow each one’s previous high
as of Sep 2026VEA −3.0%VWO −2.1%

VEA

−29%

From its Nov 2021 high to Oct 2022. Back at that high by Feb 2024.

VWO

−29%

From its Nov 2021 high to Oct 2022. Back at that high by Sep 2024.

Worst peak-to-trough fall on weekly closes · dividends reinvested

04Holdings

How much of it is the same money

overlaptop 10 holdings of each fund
0%None of VEA’s ten largest holdings appear among VWO’s.
Sum of the smaller weight in each shared holding
05Questions

VEA vs VWO: what people ask

questions6 answered

Is VEA better than VWO?

Over the past five years, VEA delivered the higher return: +9.8% a year against +6.4% for VWO, dividends reinvested. Both fell about as far at their worst (−29% and −29%). Which is better depends on the job it does in your portfolio, and past returns don’t predict future ones.

What is the difference between VEA and VWO?

VEA is Vanguard FTSE Developed Markets ETF, a fund with $323.82B in assets. VWO is Vanguard FTSE Emerging Markets ETF, a fund with $168.36B in assets. VEA charges 0.03% a year and VWO 0.06%.

Should I own both VEA and VWO?

Their weekly returns had a correlation of 0.81 over the past five years. Most weeks they go the same way. Owning both spreads company risk, not market risk. Whether that suits you depends on everything else you hold, which is the check Portfolio Terminal runs across a whole portfolio.

Which is riskier, VEA or VWO?

VEA swung more: 17% annual volatility against 16% for VWO. At their worst, VEA fell 29% and VWO 29% from a previous high. Against the broad market, their betas are 0.98 and 0.75.

Which pays a higher dividend, VEA or VWO?

VEA currently yields 2.49%, against 2.29% for VWO. Yields move with price, so a higher yield can also mean a falling price.

Which is cheaper to hold, VEA or VWO?

VEA charges 0.03% a year and VWO 0.06%. On $10,000, that is $3.00 a year in favor of VEA.

Compare something else

Any two stocks or ETFs. Keep VEA or swap both.

Vanguard FTSE Developed Markets ETF logo
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Returns use weekly closes adjusted for dividends and splits, from Sep 2021 to Sep 2026. Quotes, fees and holdings come from public market data and refresh hourly. This page describes what happened; it is not investment advice, and past performance doesn’t predict future returns.