VEA vs VXUS - Head-On Comparison Of The Two Vanguard ETFs (Which ETF You Should Invest In?). In this comparison video I will talk about VEA vs VXUS. So, the main difference between them is their composition and market exposure. VEA tracks the performance of the FTSE-developed all cap ex-US index. This includes the large, mid, and small-cap stocks from developed markets outside the US. As such, VEA exposes you to UK, Japan, and France-based companies. Conversely, VXUS tracks the FTSE Global all cap ex-US index. This index includes stocks from developed and emerging markets. As such, VXUS exposes you to VEA's developed markets and companies in China, India, and Brazil. VXUS' exposure to emerging markets promises higher potential returns compared to VEA. However, this comes at a greater risk. Therefore, VXUS promises greater exposure, making it ideal for adventurous investors. Expense ratio. VEA currently charges a 0.05% expense ratio, while VXUS charges 0.08%. The expense ratio determines how much you'll pay in operating costs. Your fund manager deducts this amount at the end of the year. As such, higher expense ratios affect your potential returns. Therefore, VEA's lower expense ratio makes it more affordable than VXUS. Risk As mentioned, VXUS invests in emerging and developed markets. In fact, the fund has a higher percentage of exposure to developing markets. This creates more risk due to fluctuations in the emerging markets. Conversely, VEA's exposure to the developed markets makes it more stable. Your investment won't face the same political and economic hurdles in emerging markets. Therefore, VEA is less risky, making it ideal for beginners who want exposure to international markets. But do they have any similarities? Yes. Both are passively managed Vanguard ETFs that expose investors to international markets. Additionally, owning these funds is relatively inexpensive since Vanguard designed them to be tax-efficient. To sum up, which is better- VEA or VXUS? I decided to venture into the international market after five years of investing. My first option was Vanguard's FTSE Developed Markets ETF (VEA). I liked its preference for the developed markets, which offered stability. Furthermore, VEA's low expense ratio made it an affordable option. I also ventured into developing markets with Vanguard's VXUS. The fund's higher returns made the risk worth it. With this said, I choose VEA as the winner of today's comparison. If you found this tutorial helpful, kindly show your support by giving it a thumbs up and sharing your thoughts in the comments below. Your feedback is greatly appreciated. Thank you! ►Disclaimer◄ This channel DOES NOT promote or encourages any illegal or unethical activities and all content provided by this channel is meant for EDUCATIONAL PURPOSES only. This video is solely intended for educational purposes only. The information presented has been thoroughly researched and sourced from reputable outlets, including, but not limited to, Google, social media platforms, and online forums. Our team has meticulously crafted original content centered around this topic, utilizing a comprehensive approach to ensure accuracy and reliability. The Savvy Professor is a YouTube channel that provides up-to-date information on various topics, ranging from finance ,technology ,gaming, how-to tutorials, product reviews, and roundups. Our channel is dedicated to delivering informative, original, and unbiased content that viewers can appreciate. I believe all content used falls under the remits of Fair Use, but if any content owners would like to dispute this I will not hesitate to immediately remove said content. It is not my intention to in any way infringe on their content ownership. If you happen to find your art or images in the video please let me know and I will be glad to credit you / Take down the content. Business e-mail: juicewave23 { @ } gmail.com ................................. Content Credit : The visual content featured in this video has been obtained from reputable sources, including Google Images, official websites, and stock footage clips. Furthermore, the information presented in this video has been derived from various reliable data sources, such as Wikipedia, Google search, Forums and other social media platforms. The video has been professionally edited using a combination of Adobe Premiere and Adobe After Effects, to create original content thats is engaging for our viewers. ..................................... FTC Disclosure: The Savvy Professor is a participant of Amazon Affiliate Program. Provided Amazon product links are linked to my Amazon Affiliate account & I receive small commissions from every successful purchase made using these links.