VEA

The Vanguard FTSE Developed Markets Index Fund ETF Shares (VEA) is an exchange-traded fund that seeks to track the performance of an index composed of large- and mid-cap stocks from developed markets outside the United States and Canada. The ETF is managed by Vanguard and trades under the ticker VEA on NYSE Arca.

Classified as an international equity ETF with a developed markets focus, VEA aims to reflect, before fees and expenses, the aggregated performance of the equities in its benchmark index.

To achieve this objective, the fund employs a passive management strategy, maintaining a portfolio that seeks to replicate the composition and weighting of the index.

VEA’s benchmark is based on the FTSE Developed All Cap ex US Index, which includes stocks from developed markets outside the U.S. and Canada, weighted by float-adjusted market capitalization, with periodic rebalancing to ensure alignment with the market.

Diversification and sector exposure

VEA provides broad exposure to the equity markets of developed economies outside North America, with companies across multiple sectors:

• Information technology.

• Health care.

• Consumer discretionary.

• Consumer staples.

• Financials.

• Industrials.

• Energy.

This composition offers a diversified representation of major sectors in developed markets globally.

Structure and costs

Shares of VEA are traded on the secondary market, while creation and redemption of shares are carried out by authorized participants, a mechanism that helps keep the ETF’s market price close to its net asset value (NAV).

The fund carries a low and competitive expense ratio, typical of Vanguard’s passive ETFs, and does not charge a performance fee. VEA may make periodic income distributions, derived from dividends paid by the underlying stocks. The ETF has a single share class and trades exclusively under the ticker VEA.

History and evolution of the ETF

The Vanguard FTSE Developed Markets Index Fund ETF Shares was launched in 2007, amid growing global investor interest in passive instruments offering broad exposure to developed markets outside the United States.

Since its inception, VEA has become one of the leading ETFs for accessing developed market economies globally, widely used by institutional and individual investors as a key component in international diversification strategies.

Between 2020 and 2024, the ETF reflected significant developments across developed economies, including macroeconomic events, shifts in monetary policy, and global growth trends, while maintaining high liquidity and broad adoption as a diversification tool.