VSS vs. VEA

Last updated Jun 13, 2026

VSS (Vanguard FTSE All-World ex-US Small-Cap ETF) and VEA (Vanguard FTSE Developed Markets ETF) are both exchange-traded funds - VSS is a Foreign Small & Mid Cap Equities fund tracking the FTSE Global Small Cap ex US Index, while VEA is a Foreign Large Cap Equities fund tracking the FTSE Developed All Cap ex US Index. Both are passively managed. Over the past 10 years, VSS returned 8.49%/yr vs 10.72%/yr for VEA. Their correlation of 0.94 suggests significant overlap in exposure. VSS charges 0.07%/yr vs 0.03%/yr for VEA.

Performance

VSS vs. VEA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) and Vanguard FTSE Developed Markets ETF (VEA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VSS achieves a 10.04% return, which is significantly lower than VEA's 14.73% return. Over the past 10 years, VSS has underperformed VEA with an annualized return of 8.49%, while VEA has yielded a comparatively higher 10.72% annualized return.

VSS

• 1D: 0.50%
• 1M: -2.09%
• YTD: 10.04%
• 6M: 12.05%
• 1Y: 23.45%
• 3Y*: 15.73%
• 5Y*: 5.58%
• 10Y*: 8.49%

VEA

• 1D: 0.34%
• 1M: 1.30%
• YTD: 14.73%
• 6M: 16.65%
• 1Y: 29.82%
• 3Y*: 19.03%
• 5Y*: 9.51%
• 10Y*: 10.72%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VSS vs. VEA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	10.04%	29.61%	2.94%	15.52%	-21.48%	13.05%	11.81%	21.36%	-18.48%	30.61%
VEA Vanguard FTSE Developed Markets ETF	14.73%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	26.42%

Correlation

The correlation between VSS and VEA is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (10Y) Calculated over the trailing 10-year period	0.94
Correlation (All Time) Calculated using the full available price history since Apr 6, 2009	0.94

The correlation between VSS and VEA has been stable across timeframes, ranging from 0.93 to 0.95 - a consistent structural relationship.

VSS vs. VEA - Sectors Allocation Comparison

Sectors	VSS	VEA
Industrials	18.7%	19.2%
Technology	13.3%	13.8%
Basic Materials	12.1%	7.5%
Financial Services	10.8%	23.3%
Consumer Cyclical	9.3%	7.5%
Real Estate	7.3%	2.7%
Healthcare	6.2%	8.2%
Energy	4.9%	5.4%
Consumer Defensive	3.4%	5.6%
Utilities	2.5%	3.3%
Communication Services	2.3%	3.4%

Return for Risk

VSS vs. VEA — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VSS

VSS Risk / Return Rank: 49
VSS Sharpe Ratio Rank: 49
VSS Sortino Ratio Rank: 48
VSS Omega Ratio Rank: 51
VSS Calmar Ratio Rank: 46
VSS Martin Ratio Rank: 51

VEA

VEA Risk / Return Rank: 62
VEA Sharpe Ratio Rank: 63
VEA Sortino Ratio Rank: 62
VEA Omega Ratio Rank: 63
VEA Calmar Ratio Rank: 59
VEA Martin Ratio Rank: 63

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VSS vs. VEA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	VSS	VEA	Difference
Sharpe ratio: Return per unit of total volatility	1.51	1.81	-0.30
Sortino ratio: Return per unit of downside risk	2.10	2.50	-0.41
Omega ratio: Gain probability vs. loss probability	1.28	1.33	-0.05
Calmar ratio: Return relative to maximum drawdown	2.03	2.58	-0.55
Martin ratio: Return relative to average drawdown	7.61	9.92	-2.31

VSS vs. VEA - Sharpe Ratio Comparison

The current VSS Sharpe Ratio is 1.51, which is comparable to the VEA Sharpe Ratio of 1.81. The chart below compares the historical Sharpe Ratios of VSS and VEA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VSS vs. VEA - Drawdown Comparison

The maximum VSS drawdown since its inception was -43.51%, smaller than the maximum VEA drawdown of -60.68%. Use the drawdown chart below to compare losses from any high point for VSS and VEA.

Drawdown Indicators

	VSS	VEA	Difference
Max Drawdown Largest peak-to-trough decline	-43.51%	-60.68%	+17.17%
Max Drawdown (1Y) Largest decline over 1 year	-11.62%	-11.63%	+0.01%
Max Drawdown (3Y) Largest decline over 3 years	-15.73%	-13.45%	-2.28%
Max Drawdown (5Y) Largest decline over 5 years	-33.93%	-29.71%	-4.22%
Max Drawdown (10Y) Largest decline over 10 years	-43.51%	-35.73%	-7.78%
Current Drawdown Current decline from peak	-3.05%	-1.06%	-1.99%
Average Drawdown Average peak-to-trough decline	-9.63%	-13.28%	+3.65%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.09%	3.02%	+0.07%

Volatility

VSS vs. VEA - Volatility Comparison

Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) and Vanguard FTSE Developed Markets ETF (VEA) have volatilities of 6.52% and 6.84%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSS	VEA	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.52%	6.84%	-0.32%
Volatility (6M) Calculated over the trailing 6-month period	13.55%	14.38%	-0.83%
Volatility (1Y) Calculated over the trailing 1-year period	15.60%	16.58%	-0.98%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.59%	16.72%	-0.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.30%	17.40%	-0.10%

VSS vs. VEA - Expense Ratio Comparison

VSS has a 0.07% expense ratio, which is higher than VEA's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VSS vs. VEA - Dividend Comparison

VSS's dividend yield for the trailing twelve months is around 3.08%, more than VEA's 2.62% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VEA Vanguard FTSE Developed Markets ETF	2.62%	3.22%	3.35%	3.15%	2.91%	3.16%	2.04%	3.04%	3.35%	2.77%	3.05%	2.92%
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	3.08%	3.39%	3.44%	3.14%	2.30%	2.74%	1.90%	3.25%	2.80%	2.83%	2.93%	2.66%

Frequently Asked Questions

Can I hold both VSS and VEA in my portfolio?

With a correlation of 0.93, VSS and VEA move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VSS or VEA?

VEA has higher volatility (6.84%) compared to VSS (6.52%). In terms of maximum drawdown, VSS dropped -43.51% vs VEA's -60.68%.

Which ETF is better, VSS or VEA?

On 10-year performance, VEA leads with 10.72% vs 8.49% for VSS. On fees, VEA is cheaper at 0.03% per year. On volatility, VSS has been the lower-risk option at 6.52%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VSS or VEA?

Over the 10-year period, VEA has performed better with a 10.72% return vs 8.49%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VSS or VEA?

VEA is cheaper with a 0.03% expense ratio, compared with 0.07% for VSS.

Which ETF pays a higher dividend yield, VSS or VEA?

VSS has the higher dividend yield at 3.08%, compared with 2.62% for VEA.

What is the main difference between VSS and VEA?

VSS is categorized as Foreign Small & Mid Cap Equities, while VEA is Foreign Large Cap Equities. VSS tracks FTSE Global Small Cap ex US Index, while VEA tracks FTSE Developed All Cap ex US Index. Their fees differ too: 0.07% for VSS and 0.03% for VEA.

Which has better risk-adjusted returns?

VEA currently has the higher Sharpe Ratio (1.81 vs 1.51), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.