VTI vs VEA: Head-to-Head Comparison

Side-by-Side Comparison

Key Differences Between VTI and VEA

VTI (Vanguard Total Stock Market ETF) is a u.s. total market fund managed by Vanguard. VTI gives you exposure to the entire U.S. stock market in one fund, covering large-cap, mid-cap, and small-cap companies. With over 3,600 holdings, it is one of the most diversified U.S. equity ETFs you can buy. Beginners often choose VTI over S&P 500 funds because it includes smaller companies that have historically provided additional growth potential.

VEA (Vanguard FTSE Developed Markets ETF) is a international developed fund managed by Vanguard. VEA provides broad exposure to stocks in developed countries outside the United States, including companies in Europe, Japan, Australia, and Canada. With over 4,000 holdings, it is one of the most diversified international ETFs available. Beginners choose VEA to add international developed market exposure to their portfolios at an incredibly low cost of just 0.05%.

The most notable differences are in fees (0.03% vs 0.05%), number of holdings (3,644 vs 4,050), and 5-year returns (15.20% vs 6.50%).

Holdings Overlap Analysis

VTI and VEA share only 0% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.

Cost Comparison Over Time

If you invest $10,000 and hold for 20 years (assuming 8% annual returns):

Over 20 years, the fee difference amounts to $172 on a $10,000 investment. VTI saves you more in fees over time.

Which One Should a Beginner Choose?

Choose VTI if: You want investors who want complete u.s. stock market coverage in a single fund, beginners building a simple two-fund or three-fund portfolio, long-term investors who want small-cap exposure alongside large-caps. It's managed by Vanguard with an expense ratio of 0.03%.

Choose VEA if: You want investors who want developed market international exposure without emerging markets, cost-conscious investors seeking the cheapest way to diversify outside the u.s., portfolio builders who want to pair vea with a separate emerging markets fund like vwo. It's managed by Vanguard with an expense ratio of 0.05%.

Can You Own Both VTI and VEA?

Absolutely! With only 0% overlap, VTI and VEA complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.

Frequently Asked Questions