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. Snapshot (cost & size) 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. Cost is a minor factor here, as both funds are exceptionally affordable. The Vanguard FTSE Developed Markets ETF edges out its sibling with a lower 0.03% expense ratio compared to the 0.05% charged by the other Vanguard fund.