What is the Vanguard FTSE Developed Markets ETF (VEA)?
The VEA ETF is an exchange-traded fund (ETF) that provides investors with exposure to stocks from developed markets outside the U.S., including Europe, Asia, and Australia. It holds a diversified portfolio of nearly 4,000 companies spanning various industries, offering broad international diversification.
Known for its low expense ratio and consistent dividend yield of around 3.2%, VEA is a cost-effective choice for long-term and income-focused investors.
Exchange-Traded Fund (ETF)
How to Buy Vanguard FTSE Developed Markets ETF (VEA)
- Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
- Search for the ETF: Enter the ticker "VEA" into the search bar to bring up the ETF's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this ETF.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Holdings of Vanguard FTSE Developed Markets ETF (VEA)
VEA holds nearly 4,000 stocks, making it a highly diversified fund focused on developed markets outside of the United States. Its largest holdings include well-known companies across Europe, Asia, and other regions. Here are some of the fund's key holdings:
- Nestle S.A. (NSRGY +0.01%)
- ASML Holding N.V. (ASML -2.06%)
- Samsung Electronics Co., Ltd. (SSNL.F +55.02%)
- Toyota Motor Corporation (TM -1.52%)
- Shell PLC (SHEL -0.07%)
These holdings represent prominent companies in industries such as consumer goods, technology, and automotive manufacturing. The breadth of the VEA's holdings ensures exposure to a variety of sectors and geographies, which makes it very appealing to international investors.
Should you invest in Vanguard FTSE Developed Markets ETF (VEA)?
Investing in VEA can be a smart move if you're looking to gain broad exposure to developed international markets. Here are some reasons why it might be right for you, along with factors to consider before investing.
- You want international exposure: Investing in developed markets outside of the U.S. is a great way to gain exposure to different currencies and growth trajectories without the risks of emerging markets.
- You prefer low-cost investing: VEA charges a minimal expense ratio of 0.03%, making it a cost-effective option for long-term investors, particularly those looking for a long-term option for retirement, either by investing a lump sum and letting it sit or drip-feeding it over time.
- You're seeking broad diversification: VEA covers companies from multiple countries and sectors, which can help reduce risk and provide exposure to global growth opportunities. It holds stocks in everything from technology to heavy industry, which is great for diversification.
And here are some examples of when you might want to avoid investing in VEA.
- You're looking for high growth: While VEA offers solid returns, it may not be the best choice if you're seeking the rapid growth potential seen in emerging markets like Vietnam or Malaysia. There will always be less growth potential than there is with stocks from developing markets.
- You prefer U.S.-focused investments: If you're more comfortable with the U.S. market or seek investments that cater to local market trends, VEA's international focus may not be the right fit.
- You're concerned about currency fluctuations: The value of this ETF can be influenced by changes in foreign exchange rates, adding a layer of volatility compared to purely domestic investments. One substantial example is the 2016 Brexit vote, when the pound took a dramatic dive compared with the dollar. Existing U.K. assets lost value in dollar terms, but it also created an opportunity for investors like VEA to buy U.K. assets at a discount.
Does Vanguard FTSE Developed Markets ETF (VEA) pay a dividend?
The VEA ETF pays a dividend. As of late 2025, its dividend yield was approximately 3.2%. The fund distributes dividends quarterly, reflecting the income generated by the underlying securities in the ETF.
Historically, its dividend payments have been consistent, making it an attractive option for income-focused investors and those who crave stability.
What is the Vanguard FTSE Developed Markets ETF (VEA) expense ratio?
The expense ratio of VEA is 0.03%, which is very low compared to the industry average for similar funds (around 0.18%). In general, Vanguard ETFs have some of the lowest expense ratios out there.
Expense Ratio
Historical performance of Vanguard FTSE Developed Markets ETF (VEA)
VEA has delivered steady returns over different time frames. Below is its historical performance as of late 2025.
Time period | Performance |
|---|---|
1-Year | 15.51% |
3-Year | 16.78% |
5-Year | 10.33% |
10-Year | 7.79% |
The bottom line
Compared to the immense growth opportunities in the developing world, VEA won't exactly blow you away with its returns. That being said, it's a great way to gain exposure to equities outside the U.S., which is important for diversifying a portfolio and mitigating risk.
When building a portfolio, it's important to have a mix -- international vs. domestic, low risk vs. high risk, etc. If you're on the hunt for a low-cost ETF but want to add something different to your portfolio, VEA's historical returns have been solid.
That's not to say that the developed world outside of the U.S. doesn't have problems that could impede their future, with demographics and low birthrates being a primary issue. Still, some of the largest and most important companies in the world are still based in Europe and Asia, and those companies will continue to have a major footprint for years to come.
