VEA ETF Review: Vanguard Developed Markets (2026)
Overview & Fundamentals
The Vanguard FTSE Developed Markets ETF (VEA) is one of the most popular core building blocks for international equity exposure. It tracks the FTSE Developed All Cap ex US Index, providing market-cap-weighted exposure to large, mid, and small-cap stocks in developed markets outside of the United States.
In 2026, VEA remains a staple in long-term portfolios due to its ultra-low 0.05% expense ratio and deep diversification, holding nearly 4,000 individual stocks across regions like Europe, the Pacific Basin, and Canada.
VEA vs IEFA vs SPDW
When choosing a developed markets ETF, investors typically compare Vanguard's VEA to iShares' IEFA and State Street's SPDW. The differences are marginal, primarily revolving around the specific index tracked and slight fee variations.
| Metric | VEA (Vanguard) | IEFA (iShares) | SPDW (SPDR) |
| Expense Ratio | 0.05% | 0.07% | 0.03% |
| Index Family | FTSE | MSCI | MSCI |
| Korea Classification | Developed | Emerging | Developed |
| Canada Exposure | Yes | No | Yes |
Note on South Korea & Canada: FTSE considers South Korea a developed market (included in VEA), whereas MSCI categorizes it as emerging (excluded from IEFA). Additionally, IEFA tracks the EAFE index (Europe, Australasia, Far East) which excludes Canada, whereas VEA and SPDW include Canadian equities.
Frequently Asked Questions
What is the VEA ETF expense ratio in 2026?
The Vanguard FTSE Developed Markets ETF (VEA) has an expense ratio of 0.05%. This means you pay $5 annually for every $10,000 invested.
Is VEA a good ETF for international exposure?
Yes, VEA is one of the most popular and cost-effective ETFs for gaining broad exposure to developed markets outside of the US, holding roughly 4,000 stocks across Europe, Asia, and Canada.
How does VEA compare to IEFA?
VEA (Vanguard) and IEFA (iShares) are highly comparable developed market ETFs. VEA has an expense ratio of 0.05%, while IEFA charges 0.07%. VEA includes Canada and South Korea, while IEFA (tracking MSCI EAFE) generally excludes them.
What are the top holdings in VEA?
Top holdings typically include massive non-US multinationals like ASML, Samsung, Novo Nordisk, Nestle, and Toyota.
Does VEA pay a dividend?
Yes, VEA pays a quarterly dividend. Its trailing 12-month yield usually hovers around 2.5% to 3.5%, depending on global market conditions and currency fluctuations.
Methodology: Financial data for VEA, IEFA, and SPDW was compiled using Yahoo Finance API data in March 2026. Expense ratios, yields, and holdings are subject to change based on the fund manager's daily disclosures.