VXUS vs VEU vs VEA for UAE residents
All three hold shares outside the United States, on different indices: VXUS adds small companies, VEU holds large and mid-sized companies, and VEA holds developed markets only, with no emerging markets. All three are domiciled in the United States, which matters for an investor living in the UAE.
In short
- Different indices: VXUS tracks the FTSE Global All Cap ex US; VEU tracks the FTSE All-World ex US; VEA tracks the FTSE Developed All Cap ex US.
- Cost: lowest VEA at 0.03% a year, highest VXUS at 0.05% a year.
- Domicile: all 3 are in the United States, so for a UAE resident US dividends usually have 30% withheld, and the shares count as US assets for US estate tax above US$60,000, at rates up to 40%.
Facts, not a recommendation. Tax depends on your nationality, residence and facts; costs as of 30 Sep 2026.
The funds side by side
VXUS · Vanguard Total International Stock ETF
United States, FTSE Global All Cap ex US
Dividends Paid out quarterlyListing Nasdaq, US dollarsLaunched 2011
0.05%
Cost a year
VEU · Vanguard FTSE All-World ex-US ETF
United States, FTSE All-World ex US
Dividends Paid out quarterlyListing NYSE Arca, US dollarsLaunched 2007
0.04%
Cost a year
VEA · Vanguard FTSE Developed Markets ETF
United States, FTSE Developed All Cap ex US
Dividends Paid out quarterlyListing NYSE Arca, US dollarsLaunched 2007
0.03%
Cost a year
| ETF | Domicile | Index | Dividends | Expense ratio | Listing | Launched |
|---|---|---|---|---|---|---|
| VXUS Vanguard Total International Stock ETF | United States | FTSE Global All Cap ex US | Paid out quarterly | 0.05% a year | Nasdaq, US dollars | 2011 |
| VEU Vanguard FTSE All-World ex-US ETF | United States | FTSE All-World ex US | Paid out quarterly | 0.04% a year | NYSE Arca, US dollars | 2007 |
| VEA Vanguard FTSE Developed Markets ETF | United States | FTSE Developed All Cap ex US | Paid out quarterly | 0.03% a year | NYSE Arca, US dollars | 2007 |
Expense ratios as reported by our market data, 30 Sep 2026.
Returns in US dollars
| ETF | 1 year | 3 years (annualised) | 5 years (annualised) | 10 years (annualised) | Volatility 3Y |
|---|---|---|---|---|---|
| VXUS | +17.97% | +20.50% | +9.26% | +9.27% | 15.40% |
| VEU | +18.41% | +20.75% | +9.53% | +9.40% | 15.42% |
| VEA | +20.17% | +21.24% | +10.27% | +9.85% | 15.78% |
Total returns with dividends reinvested, to 30 Sep 2026. Returns over 3 years and longer are compounded annual returns. Past performance does not indicate future returns.
What differs for an investor living in the UAE
- US estate tax. VXUS, VEU, VEA are domiciled in the United States, so their shares count as US assets. For a person who is not a US citizen or resident, US estate tax can apply above US$60,000 of US assets, at rates that rise to 40%.
- Tax on US dividends. The UAE has no income tax treaty with the United States, so US dividends paid to a UAE resident usually have 30% withheld.
- Cost. Compare the expense ratios above; on funds tracking the same index, a lower yearly cost is the most certain difference in what you keep.
- Where you buy. These funds trade in New York in US dollars. Check which your broker offers and what it charges for each market.
The outcome depends on your nationality, residence and facts, so confirm your own position with a tax adviser. Sources: IRS, estate tax for nonresidents and US income tax treaties, checked October 2026.
Questions
Do VXUS, VEU, VEA track the same thing?
Not exactly. VXUS tracks the FTSE Global All Cap ex US; VEU tracks the FTSE All-World ex US; VEA tracks the FTSE Developed All Cap ex US. Their returns differ for that reason as well as cost.
Why does domicile matter for someone living in the UAE?
A US-domiciled ETF counts as a US asset. For a person who is not a US citizen or resident, US estate tax can apply to US assets above US$60,000, at rates that rise to 40%, and US dividends paid to a UAE resident usually have 30% withheld because the UAE has no income tax treaty with the United States. Ireland-domiciled UCITS ETFs are generally not treated as US assets for estate tax, and the fund pays 15% on its US dividends under the US and Ireland treaty. The outcome depends on your nationality, residence and facts, so confirm your position with a tax adviser.
What does accumulating mean?
An accumulating fund reinvests its dividends inside the fund instead of paying them out, so no dividend reaches your account. A distributing fund pays dividends out, usually every quarter.