Looking for International Diversification? Here's How Vanguard's VXUS and VEA ETFs Compare in 2026.
VXUS captures emerging markets while VEA focuses on developed economies. Both delivered 26%+ returns over 12 months with nearly identical risk profiles.
Overview
Choosing between Vanguard Total International Stock ETF (NASDAQ:VXUS) and Vanguard FTSE Developed Markets ETF (NYSEMKT:VEA) involves weighing comprehensive global exposure, including emerging markets, against a lower-cost focus on established international economies.
Both funds serve as core pillars for international diversification. While one captures nearly the entire non-U.S. investable universe, the other narrows its scope to established economies like those in Europe, Canada, and the Pacific region, offering a slightly more streamlined and cost-efficient approach for investors.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
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Source
Originally published at www.fool.com.