Average Daily Volume
14.22M
Fund Overview
The Vanguard FTSE Developed Markets ETF (VEA) is designed to provide investors with exposure to a broad range of developed market equities outside the United States. The fund seeks to track the performance of the FTSE Developed All Cap ex US Index, which includes large-, mid-, and small-cap stocks from developed countries such as Japan, the United Kingdom, Canada, and Germany. VEA offers a cost-effective way to diversify internationally, with holdings spanning multiple sectors including financials, industrials, and consumer goods. The ETF is known for its low expense ratio and passive management approach, making it a popular choice for long-term investors seeking international equity exposure.
- Asset Class
-
Equity
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- N/A
- Currency Hedged
-
No
- Portfolio Turnover
-
3 %
- Dividend Date
-
Why Invest in the VEA ETF?
Potential Benefits
- Diversification across developed markets outside the U.S., reducing reliance on domestic equity performance.
- Low expense ratio compared to many actively managed international funds, enhancing long-term returns.
- Exposure to large-, mid-, and small-cap stocks, providing a comprehensive representation of developed markets.
- Passive management strategy minimizes turnover and tracking error relative to the benchmark index.
- Highly liquid with tight bid-ask spreads, facilitating easy entry and exit for investors.
Potential Risks
- Currency fluctuations in non-U.S. markets can impact returns for U.S. investors.
- Political and economic instability in developed markets may affect performance.
- Concentration risk in certain regions (e.g., Japan and Europe) due to index weighting.
- Lower growth potential compared to emerging markets, which are excluded from the fund.
- Dividend withholding taxes in foreign jurisdictions may reduce net returns.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+6.0%
|
+6.1%
|
-8.6%
|
+7.4%
|
+4.3%
|
-0.2%
|
-0.9%
|
+3.3%
|
-2.9%
|
+0.7%
|
-
|
-
|
| 2025 |
+4.4%
|
+2.3%
|
0.0%
|
+4.0%
|
+5.1%
|
+3.4%
|
-1.4%
|
+4.4%
|
+2.6%
|
+1.8%
|
+1.0%
|
+3.2%
|
| 2024 |
-1.1%
|
+2.7%
|
+3.7%
|
-3.4%
|
+4.7%
|
-1.6%
|
+3.0%
|
+2.9%
|
+1.1%
|
-5.1%
|
+0.4%
|
-3.5%
|
| 2023 |
+9.0%
|
-3.5%
|
+2.6%
|
+2.6%
|
-3.7%
|
+4.4%
|
+3.1%
|
-3.9%
|
-3.8%
|
-3.4%
|
+8.8%
|
+5.6%
|
| 2022 |
-3.9%
|
-2.6%
|
+0.7%
|
-6.8%
|
+1.7%
|
-9.2%
|
+5.3%
|
-5.8%
|
-9.9%
|
+6.1%
|
+12.5%
|
-2.2%
|
| 2021 |
-0.7%
|
+2.4%
|
+2.8%
|
+3.1%
|
+3.6%
|
-0.9%
|
+0.5%
|
+1.3%
|
-3.4%
|
+3.2%
|
-4.6%
|
+4.3%
|
| 2020 |
-3.0%
|
-7.7%
|
-15.1%
|
+7.0%
|
+5.6%
|
+3.5%
|
+2.6%
|
+5.2%
|
-1.8%
|
-3.5%
|
+14.3%
|
+5.6%
|
| 2019 |
+7.5%
|
+2.3%
|
+0.6%
|
+2.8%
|
-5.2%
|
+5.9%
|
-2.0%
|
-1.9%
|
+3.2%
|
+3.2%
|
+1.3%
|
+3.6%
|
| 2018 |
+4.7%
|
-5.1%
|
-0.4%
|
+1.3%
|
-1.4%
|
-1.7%
|
+2.3%
|
-1.7%
|
+0.7%
|
-8.6%
|
+0.5%
|
-5.7%
|
| 2017 |
+3.7%
|
+1.1%
|
+3.1%
|
+2.2%
|
+3.4%
|
+0.6%
|
+2.9%
|
0.0%
|
+2.5%
|
+1.8%
|
+0.9%
|
+1.6%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
RY
|
ROYAL BANK OF CANADA |
0.8 % |
|
SHOP
|
n/a |
0.6 % |
|
TD
|
THE TORONTO-DOMINION BANK |
0.4 % |
|
ENB
|
ENBRIDGE INC |
0.4 % |
|
BN
|
n/a |
0.4 % |
|
BMO
|
BANK OF MONTREAL |
0.3 % |
|
CP
|
CANADIAN PACIFIC KANSAS CITY LTD |
0.3 % |
|
CNQ
|
CANADIAN NATURAL RESOURCES LTD |
0.3 % |
|
BNS
|
BANK OF NOVA SCOTIA |
0.3 % |
|
CRH
|
CRH PLC |
0.3 % |
Top 10 holdings shown, out of 3 total holdings.
Related ETFs: VEA vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
VEA tracks the FTSE Developed All Cap ex US Index, which includes large-, mid-, and small-cap stocks from developed markets outside the U.S. The index is market-cap weighted, meaning larger companies have a greater influence on performance. The fund holds over 4,000 stocks, providing broad diversification across sectors and countries. VEA employs a passive management strategy, aiming to replicate the index's performance with minimal tracking error. The fund is rebalanced quarterly to align with index changes, ensuring it maintains its target allocations. Holdings primarily consist of common stocks, with no use of derivatives or leverage.
Frequently Asked Questions
Does VEA include exposure to emerging markets?
No, VEA focuses exclusively on developed markets outside the U.S. Investors seeking emerging market exposure may consider funds like VWO or IEMG.
How often does VEA pay dividends?
VEA typically distributes dividends quarterly, sourced from the underlying stocks in the fund. Dividend yields may vary based on market conditions.
What percentage of VEA is invested in Japan?
As of the latest data, Japan represents approximately 20-25% of VEA's holdings, making it the largest country allocation in the fund.
Is VEA a good hedge against U.S. market downturns?
While international diversification can reduce portfolio risk, developed markets often correlate with U.S. markets during global downturns. VEA may provide some diversification benefits but is not a perfect hedge.
Can VEA be held in a tax-advantaged account like an IRA?
Yes, VEA can be held in IRAs or other tax-advantaged accounts. However, foreign tax credits for dividends may be lost in these accounts.
Industry Overview
The Vanguard FTSE Developed Markets ETF (VEA) provides exposure to the developed international equity market, excluding the U.S. This segment includes economically mature countries with stable regulatory environments and advanced financial markets. Investing in developed markets can offer diversification benefits and exposure to industries and companies not heavily represented in the U.S. market. However, these markets may experience slower growth compared to emerging markets and are subject to regional economic cycles, currency risks, and geopolitical factors. VEA's broad diversification across sectors and countries helps mitigate some of these risks while capturing long-term growth potential.
Alternative Comparison
Compared to its closest peer, iShares MSCI EAFE ETF (EFA), VEA offers broader exposure by including small-cap stocks and Canada, which EFA excludes. VEA also has a lower expense ratio (0.05% vs. 0.32%), making it more cost-effective for long-term investors. Another competitor, Schwab International Equity ETF (SCHF), tracks a similar index but has slightly higher concentration in top holdings. Unlike some actively managed international funds, VEA's passive approach ensures consistent, low-cost exposure without manager bias.
Issuer Overview
Vanguard is one of the world's largest investment management companies, known for its low-cost index funds and ETFs. Founded by John C. Bogle in 1975, Vanguard pioneered the index investing approach and remains a leader in passive investment strategies. The firm is client-owned, meaning its funds are owned by the investors who purchase them, aligning its interests with those of its shareholders. Vanguard's reputation for low fees, transparency, and long-term focus makes it a trusted choice for investors.
Conclusion
VEA is a compelling option for investors seeking low-cost, diversified exposure to developed international markets. Its broad index coverage, low expense ratio, and passive management make it suitable for both core international allocations and long-term portfolios. While currency and regional risks persist, VEA's structure provides an efficient way to access growth outside the U.S. Investors should consider their overall asset allocation and risk tolerance when incorporating VEA into their strategy.
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