VOO vs. VEA
Compare and contrast key facts about Vanguard S&P 500 ETF (VOO) and Vanguard FTSE Developed Markets ETF (VEA).
VOO and VEA are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VOO is a passively managed fund by Vanguard that tracks the performance of the S&P 500 Index. It was launched on Sep 7, 2010. VEA is a passively managed fund by Vanguard that tracks the performance of the MSCI EAFE Index. It was launched on Jul 20, 2007. Both VOO and VEA are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VOO or VEA.
Key characteristics
| VOO | VEA | |
|---|---|---|
| YTD Return | 11.78% | 7.30% |
| 1Y Return | 28.27% | 14.75% |
| 3Y Return (Ann) | 10.42% | 2.90% |
| 5Y Return (Ann) | 15.03% | 7.90% |
| 10Y Return (Ann) | 13.05% | 5.14% |
| Sharpe Ratio | 2.56 | 1.14 |
| Daily Std Dev | 11.55% | 12.73% |
| Max Drawdown | -33.99% | -60.70% |
| Current Drawdown | -0.04% | -0.21% |
Correlation
The correlation between VOO and VEA is 0.83, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VOO vs. VEA - Performance Comparison
In the year-to-date period, VOO achieves a 11.78% return, which is significantly higher than VEA's 7.30% return. Over the past 10 years, VOO has outperformed VEA with an annualized return of 13.05%, while VEA has yielded a comparatively lower 5.14% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
VOO vs. VEA - Expense Ratio Comparison
VOO has a 0.03% expense ratio, which is lower than VEA's 0.05% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
VOO vs. VEA - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard S&P 500 ETF (VOO) and Vanguard FTSE Developed Markets ETF (VEA). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
VOO vs. VEA - Dividend Comparison
VOO's dividend yield for the trailing twelve months is around 1.32%, less than VEA's 3.21% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VOO Vanguard S&P 500 ETF | 1.32% | 1.46% | 1.69% | 1.25% | 1.54% | 1.88% | 2.06% | 1.78% | 2.02% | 2.10% | 1.85% | 1.84% |
VEA Vanguard FTSE Developed Markets ETF | 3.21% | 3.15% | 2.91% | 3.16% | 2.04% | 3.04% | 3.35% | 2.77% | 3.05% | 2.92% | 3.68% | 2.60% |
Drawdowns
VOO vs. VEA - Drawdown Comparison
The maximum VOO drawdown since its inception was -33.99%, smaller than the maximum VEA drawdown of -60.70%. Use the drawdown chart below to compare losses from any high point for VOO and VEA. For additional features, visit the drawdowns tool.
Volatility
VOO vs. VEA - Volatility Comparison
Vanguard S&P 500 ETF (VOO) has a higher volatility of 3.37% compared to Vanguard FTSE Developed Markets ETF (VEA) at 3.13%. This indicates that VOO's price experiences larger fluctuations and is considered to be riskier than VEA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.