Vanguard FTSE Developed Markets ETF (VEA) boasts a lower expense ratio and a larger stock portfolio compared to iShares MSCI ACWI ex US ETF (ACWX). VEA leans more towards industrials, while ACWX has a higher technology tilt. Both funds have seen strong returns, with VEA showing slightly more upside over the past five years.
VEA and ACWX offer investors access to non-US equities, but with differences in sector exposure, cost, and portfolio breadth. VEA has a significantly lower expense ratio of 0.03% compared to ACWX’s 0.32%. The comparison highlights their unique strengths and where their overlap or divergence may impact portfolio construction.
VEA has an expense ratio of 0.03%, a 1-year return of 35.8%, and a dividend yield of 3.1%. On the other hand, ACWX has an expense ratio of 0.32%, a 1-year return of 34.2%, and a dividend yield of 2.7%. VEA also has a higher beta and AUM compared to ACWX.
VEA offers exposure to over 3,800 stocks in developed markets, with top sectors in financial services, industrials, and technology. ACWX tracks large- and mid-cap stocks from both developed and emerging markets, with a sector mix led by Financial Services, Technology, and Industrials. Both ETFs provide distinct international market exposure.
International stocks outperformed US markets in 2025, making VEA and ACWX attractive options. VEA is a cost-effective choice for developed market exposure, while ACWX provides a broader reach with emerging market exposure. Investors can choose based on their risk tolerance and investment goals.
Read more at Yahoo Finance: Cheap International Exposure or Full Global Access?
