Vector files may be better known as EPS, SVG or Ai files. The main way a vector based image differs from a JPEG is by what it's made up of. While a JPEG is composed of pixels, a vector, weirdly enough, is made up of vectors. Vectors are points and paths, whereas pixels are small squares put together to make an image. While raster images like JPEG files can handle high-quality photographs, the vector format is better for graphic design, logos, and illustrations.