Vanguard FTSE Developed Markets ETF (VEA): Complete Beginner's Guide
Vanguard FTSE Developed Markets ETF (VEA) is a international developed ETF from Vanguard with an expense ratio of 0.05% and $120.0B in assets under management. Our Beginner Suitability Score: 9.5/10 (Great for Beginners). 5-year annualized return: 6.50%.
Last updated: April 2026
Vanguard • International Developed
Expense Ratio
0.05%
AUM
$120.0B
Dividend Yield
3.10%
Inception
2007
Beginner Score
9.5/10
What is Vanguard FTSE Developed Markets ETF?
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%.
VEA is managed by Vanguard and has been available since 2007. With $120.0B in assets under management, it's one of the largest and most liquid ETFs available. The fund charges an expense ratio of 0.05%, which means for every $10,000 you invest, you pay approximately $5 per year in management fees.
VEA at a Glance — Key Metrics
| Expense Ratio | 0.05% |
| Total Holdings | 4,050 |
| P/E Ratio | 15.2 |
| Beta | 0.82 |
| Dividend Yield | 3.10% |
| AUM | $120.0B |
| Inception Year | 2007 |
| Issuer | Vanguard |
Top 10 Holdings in VEA
VEA holds 4,050 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Novo Nordisk A/S | NVO | 1.90% |
| 2 | ASML Holding NV | ASML | 1.70% |
| 3 | Nestle SA | NSRGY | 1.40% |
| 4 | Samsung Electronics Co. | 005930.KS | 1.30% |
| 5 | Toyota Motor Corp. | TM | 1.20% |
| 6 | Roche Holding AG | RHHBY | 1.10% |
| 7 | Shell PLC | SHEL | 1.10% |
| 8 | AstraZeneca PLC | AZN | 1.00% |
| 9 | SAP SE | SAP | 1.00% |
| 10 | LVMH Moet Hennessy | LVMUY | 0.90% |
VEA's top holding is Novo Nordisk A/S (NVO) at 1.90%, followed by ASML Holding NV (ASML) at 1.70% and Nestle SA (NSRGY) at 1.40%. The top 10 holdings account for 12.60% of the fund's 4,050 total positions.
View data table
| Rank | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Novo Nordisk A/S | NVO | 1.90% |
| 2 | ASML Holding NV | ASML | 1.70% |
| 3 | Nestle SA | NSRGY | 1.40% |
| 4 | Samsung Electronics Co. | 005930.KS | 1.30% |
| 5 | Toyota Motor Corp. | TM | 1.20% |
| 6 | Roche Holding AG | RHHBY | 1.10% |
| 7 | Shell PLC | SHEL | 1.10% |
| 8 | AstraZeneca PLC | AZN | 1.00% |
| 9 | SAP SE | SAP | 1.00% |
| 10 | LVMH Moet Hennessy | LVMUY | 0.90% |
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VEA Performance History
Here's how VEA has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
1.70%
1 Year
9.20%
3 Year
4.20%
5 Year
6.50%
10 Year
5.50%
VEA has returned 6.50% annualized over 5 years and 5.50% over 10 years. YTD return is 1.70%.
View data table
| Period | Return |
|---|---|
| YTD | 1.70% |
| 1 Year | 9.20% |
| 3 Year | 4.20% |
| 5 Year | 6.50% |
| 10 Year | 5.50% |
Beginner Suitability Score: 9.5/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
VEA scores 9.5/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 4,050 holdings, and has been available since 2007, giving it a proven track record.
How to Buy VEA — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "VEA" — Use the search bar in your brokerage platform to find Vanguard FTSE Developed Markets ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
VEA Sector Allocation
Here's how VEA distributes its investments across different sectors of the economy:
VEA's largest sector allocation is Financials at 20.5%, followed by Industrials at 16.2% and Health Care at 12.8%.
View data table
| Sector | Weight |
|---|---|
| Financials | 20.5% |
| Industrials | 16.2% |
| Health Care | 12.8% |
| Consumer Discretionary | 12.2% |
| Information Technology | 10.5% |
| Consumer Staples | 8.8% |
| Energy | 5.8% |
| Materials | 5.5% |
| Communication Services | 4.2% |
| Utilities | 3.5% |
Dollar Cost Averaging Into VEA
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With VEA's expense ratio of 0.05%, a $10,000 investment would lose approximately $430 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.
VEA's expense ratio of 0.05% costs $430 on a $10,000 investment over 20 years (assuming 8% annual return). Without fees, the investment would grow to $46,610 instead of $46,180.
View data table
| Year | Without Fees | With Fees | Fee Cost |
|---|---|---|---|
| 0 | $10,000 | $10,000 | $0 |
| 5 | $14,693 | $14,659 | $34 |
| 10 | $21,589 | $21,490 | $99 |
| 15 | $31,722 | $31,502 | $220 |
| 20 | $46,610 | $46,180 | $430 |
Pros and Cons of VEA
Pros
- ✓Extremely low 0.05% expense ratio is among the cheapest for international developed market funds
- ✓Over 4,000 holdings provide deep diversification across dozens of developed countries
- ✓Higher dividend yield than U.S. market funds reflects the income-friendly nature of international stocks
- ✓Excludes emerging markets for investors who want to control their EM allocation separately
Cons
- ✗Has significantly underperformed U.S. stocks over the past decade due to dollar strength
- ✗Currency risk can reduce returns or increase volatility for U.S.-based investors
- ✗No emerging market exposure means missing out on faster-growing economies
VEA vs Similar ETFs
See how VEA stacks up against similar funds:
Frequently Asked Questions
Is VEA a good ETF for beginners?▾
VEA has a Beginner Suitability Score of 9.5/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of VEA?▾
VEA has an expense ratio of 0.05%. This means for every $10,000 you invest, you pay approximately $5 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in VEA?▾
You can invest in VEA with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does VEA pay dividends?▾
Yes, VEA pays dividends with a current yield of approximately 3.10%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in VEA?▾
The top holdings in VEA include Novo Nordisk A/S (1.90%), ASML Holding NV (1.70%), Nestle SA (1.40%), and more. The fund holds 4,050 total positions, providing broad diversification across many companies.
What sectors does VEA invest in?▾
VEA's largest sector allocations are Financials (20.50%), Industrials (16.20%), Health Care (12.80%). This sector distribution shows a focus on financials stocks.
How much do VEA's fees cost over time?▾
With an expense ratio of 0.05%, a $10,000 investment in VEA would lose approximately $430 to fees over 20 years (assuming 8% annual returns). This is a reasonable fee level.