Vanguard FTSE Developed Markets ETF (VEA 1.96%) keeps costs dramatically lower and holds a wider basket of developed-market stocks, while iShares MSCI ACWI ex US ETF (ACWX 2.01%) has a slightly different sector mix.
Both VEA and ACWX aim to give investors a one-stop way to access non-US equities, but they differ in breadth, portfolio makeup, and cost. This comparison highlights where each ETF stands out, and where the overlap or divergence may matter for portfolio construction.
Snapshot (cost & size)
| Metric | VEA | ACWX |
|---|---|---|
| Issuer | Vanguard | IShares |
| Expense ratio | 0.03% | 0.32% |
| 1-yr return (as of 2026-01-09) | 35.8% | 34.2% |
| Dividend yield | 3.1% | 2.7% |
| Beta | 1.05 | 0.75 |
| AUM | $268.9 billion | $7.87 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
VEA looks notably more affordable, with an expense ratio roughly one-tenth that of ACWX, and also delivers a modestly higher dividend yield.
NYSEMKT: VEA
Key Data Points
Performance & risk comparison
| Metric | VEA | ACWX |
|---|---|---|
| Max drawdown (5 y) | -29.70% | -30.06% |
| Growth of $1,000 over 5 years | $1,331 | $1,267 |
NYSEMKT: VEA
Key Data Points
What's inside
ACWX tracks large- and mid-cap stocks from both developed and emerging markets outside the US, and currently has around 1,751 holdings. The fund has a 17.8-year track record. Financial Services (25%), Technology (15%), and Industrials (15%) lead sector allocations. The largest positions include Taiwan Semiconductor Manufacturing, Tencent, and ASML, hinting at a meaningful Asia and emerging market presence despite the "ex US" label.
VEA, in contrast, holds over 3,800 stocks focused strictly on developed markets in Europe, the Pacific, and Canada. Its top sectors are financial services (24%), industrials (19%), and technology (12%). Top positions such as ASML, Samsung Electronics, and AstraZeneca underscore its developed-market tilt and broader diversification by number of holdings.
For more guidance on ETF investing, check out the full guide at this link.
NASDAQ: ACWX
Key Data Points
What this means for investors
International stocks crushed U.S. markets in 2025, making funds like Vanguard FTSE Developed Markets ETF (VEA) and iShares MSCI ACWI ex U.S. ETF (ACWX) enticing options for investors to consider. Both give you access to stocks outside America, but with dramatically different price tags.
VEA is one of the cheapest international ETFs available, charging just 0.03% annually (that’s $3 on a $10,000 investment). It holds nearly 4,000 companies from developed markets like Japan, the U.K., and Canada, but it completely excludes emerging markets like China, India, and Brazil. VEA therefore allows you to add international exposure to your portfolio while avoiding the higher volatility and risks associated with emerging markets.
ACWX doesn’t make this exclusion, holding both developed and emerging markets across 1,751 companies. With an expense ratio of 0.32%, this ETF is more than 10 times more expensive than VEA, but it delivers a strong return and impressive yield. And with the extra cost, you gain emerging market exposure, which can deliver higher growth but with added volatility.
For cost-conscious investors who want to stick with developed market exposure, VEA's rock-bottom fees and massive diversification make it hard to beat. Those willing to pay more for emerging market access alongside developed markets should consider ACWX. The higher expense ratio is the trade-off for that broader international reach.
Glossary
ETF: Exchange-traded fund, a basket of securities that trades on an exchange like a stock.
Expense ratio: Annual fund operating costs expressed as a percentage of the fund's average assets.
Dividend yield: Annual dividends paid by a fund divided by its current share price, shown as a percentage.
Beta: Measure of an investment's volatility compared with a benchmark index, typically the S&P 500.
AUM: Assets under management, the total market value of all assets a fund manages.
Max drawdown: The largest peak-to-trough decline in an investment's value over a specific period.
Total return: Investment performance including price changes plus all dividends and distributions, assuming reinvestment.
Developed markets: Economies considered mature, with stable political systems and advanced financial markets.
Emerging markets: Developing economies with faster growth potential but generally higher political and economic risk.
Sector allocation: How a fund's assets are distributed across different industries, such as technology or financial services.
Large-cap stocks: Shares of companies with relatively high market capitalizations, typically well-established businesses.
Mid-cap stocks: Shares of medium-sized companies, generally between small start-ups and large, mature corporations in size.
