VEA vs VXUS: Does a Vanguard Developed Markets or Emerging Markets ETF Provide Better Growth Prospects?ure?
VEA delivered stronger 1-year returns at 28.9% versus VXUS's 26.3%, though VXUS offers broader diversification across 8,602 holdings including emerging markets.
Overview
The choice between Vanguard Total International Stock ETF (NASDAQ:VXUS) and Vanguard FTSE Developed Markets ETF (NYSEMKT:VEA) hinges on whether an investor wants exposure to emerging markets or prefers a low-cost, developed-world focus.
Both funds offer efficient routes to global diversification beyond U.S. borders. While they share several top holdings and the same issuer, their underlying indices differ in geographic scope, which ultimately affects their risk profiles and recent total return performance.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield as of the close of the trading day on Aug. 13.
Source
Originally published at www.fool.com.