ETF VEA Average Dividend Yield

Dividend Yield of the VEA ETF

VEA is Vanguard's FTSE Developed Markets ETF. Vanguard launched it back in 2007, and it follows the FTSE Developed All Cap ex US Index. What you get is exposure to stocks in developed markets outside the United States, which means Canada, Europe, Japan and the rest of the Pacific. This calculator works out its dividend yield as a percentage using yield = (annual dividend per share ÷ share price) × 100.

VEA usually yields more than U.S. funds, frequently somewhere around 2.5%. The reason is that European and Japanese companies tend to pay out larger dividends than the growth-tilted U.S. tech names. Its expense ratio sits at a low 0.03%. Distributions come quarterly, but they aren't even, because plenty of foreign firms pay only once or twice a year. Put in the share price and the trailing distributions to get an estimate of the income.

Applications

It helps when you want to weigh income from international developed markets against U.S. ETFs, gauge how much of a dividend lift overseas diversification gives you, or figure out the cash flow on a VEA position. Pair it with VWO and you cover the whole ex-US picture.

FAQ

Why is VEA's yield higher than VTI's? Companies in European and Japanese developed markets have a long history of paying bigger dividends than U.S. growth firms.

Does VEA include emerging markets? No, it holds only developed markets outside the US. If you want emerging markets too, add VWO alongside it.

Are its distributions even each quarter? No. Foreign payout calendars make VEA's quarterly amounts lumpy, so it's better to use the trailing 12-month total.