# VXUS vs VEU vs VEA: which ETF for UAE residents?

Source page: https://www.rudowealth.com/etf/compare/vxus-vs-veu-vs-vea

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.

| ETF | Name | Domicile | Index | Dividends | Expense ratio | Listing |
|---|---|---|---|---|---|---|
| VXUS | Vanguard Total International Stock ETF | United States | FTSE Global All Cap ex US | Paid out quarterly | 0.05% | Nasdaq, US dollars |
| VEU | Vanguard FTSE All-World ex-US ETF | United States | FTSE All-World ex US | Paid out quarterly | 0.04% | NYSE Arca, US dollars |
| VEA | Vanguard FTSE Developed Markets ETF | United States | FTSE Developed All Cap ex US | Paid out quarterly | 0.03% | NYSE Arca, US dollars |

Returns in US dollars (3 years and longer annualised):

| ETF | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| VXUS | +17.97% | +20.50% | +9.26% | +9.27% |
| VEU | +18.41% | +20.75% | +9.53% | +9.40% |
| VEA | +20.17% | +21.24% | +10.27% | +9.85% |

What differs for an investor living in the UAE:
- US estate tax: 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 above US$60,000 of US assets, at rates that rise to 40%. Ireland-domiciled UCITS ETFs are generally not treated as US assets for this tax.
- 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. An Irish UCITS fund pays 15% on the US dividends it receives, under the US and Ireland treaty.
- The outcome depends on your nationality, residence and facts, so confirm your own position with a tax adviser. Sources: IRS (https://www.irs.gov/individuals/international-taxpayers/some-nonresidents-with-us-assets-must-file-estate-tax-returns; https://www.irs.gov/businesses/international-businesses/united-states-income-tax-treaties-a-to-z).

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RuDo Wealth is a fee-only cross-border advisory operating through two separate companies. India: RuDo Wealth Investment Advisory, SEBI Registered Investment Adviser, registration INA000019503. UAE: RuDo Digital Wealth, FSRA Financial Services Permission 220155, Category 3C (Retail), ADGM. The entity permitted to serve you depends on your country of residence.

General information, not a recommendation to buy or sell any fund. Past performance does not indicate future returns.