VEA vs VXUS: How Much International Exposure Do You Need?
VEA and VXUS are both Vanguard international equity ETFs, but they cover different universes. VEA tracks the FTSE Developed All Cap ex US Index — developed markets only (Europe, Japan, Australia, Canada). VXUS tracks the FTSE Global All Cap ex US Index — developed plus emerging markets (adds China, India, Brazil, Taiwan). The key question: do you want EM exposure bundled in or managed separately?
Key Differences
- VEA = developed only (~4,000 stocks); VXUS = developed + emerging (~8,000 stocks, ~25% EM weight)
- Same TER at 0.05% — no cost advantage either way
- VXUS includes ~25% emerging markets (China ~8%, Taiwan ~5%, India ~5%)
- VEA is more stable; VXUS adds EM growth potential but also EM volatility and political risk
- Both have similar top holdings in Japan, UK, and Europe — VXUS simply adds the EM tail
Live Comparison
Interactive comparison with real data. Toggle dividends and tax settings to see the full picture.
Bottom Line
If you want simple one-fund international exposure, VXUS is the all-in-one choice. If you prefer to control your EM allocation separately (e.g., pairing VEA with VWO), VEA gives you that flexibility. For most passive investors, VXUS + VTI is the simplest global portfolio.