The Vanguard FTSE Emerging Markets UCITS ETF (VFEA) is an Ireland-domiciled equity ETF managed by Vanguard. VFEA is the ticker for the fund's USD accumulating share class traded in U.S. dollars on the London Stock Exchange.

The fund seeks to track the FTSE Emerging Index, a benchmark comprising large- and mid-cap companies across emerging markets worldwide.

VFEA follows a passive investment strategy and uses physical replication. The fund seeks to invest in all or substantially all of the index constituents in approximately the same proportions. When full replication is not practical, it may use a sampling approach.

The FTSE Emerging Index represents large- and mid-cap companies from countries classified as emerging markets by FTSE Russell. Its methodology provides diversified exposure across different regions, sectors, and companies within the emerging equity universe.

Composition / Exposure Profile

VFEA holds companies across different areas of the economy, including:

• Technology.

• Financials.

• Consumer discretionary.

• Industrials.

• Communication services.

• Materials.

• Energy.

• Consumer staples.

• Health care.

• Utilities.

• Real estate.

Geographic exposure spans emerging markets across Asia, Latin America, the Middle East, Africa, and other regions. Taiwan, China, and India represent significant portions of the portfolio, while countries such as Brazil, South Africa, Saudi Arabia, and Mexico are also part of the investment universe.

Because the benchmark is weighted by free float-adjusted market capitalization, the weight of each country and company varies according to the size of its equity market and the proportion of shares available to investors.

Structure and Costs

The fund and share class have the U.S. dollar as their base currency. On the London Stock Exchange, the accumulating share class trades in USD under VFEA and in GBP under VFEG. The trading currency does not change the portfolio's underlying economic exposure or provide currency hedging.

The ETF has ongoing charges of 0.17% per year, uses physical replication, and is domiciled in Ireland. It operates as part of Vanguard Funds plc under the UCITS framework. VFEA follows an accumulating income policy. Dividends received from portfolio companies are therefore reinvested within the fund rather than periodically distributed to shareholders.

History and Evolution of the ETF

The Vanguard FTSE Emerging Markets UCITS ETF (USD) Acc was launched in 2019 to provide diversified exposure to large- and mid-cap companies across emerging markets.

Since its launch, the fund has maintained a passive strategy linked to the FTSE Emerging Index, tracking companies across different countries and sectors within the emerging equity universe.

Throughout its history, VFEA's performance has reflected factors including economic growth across emerging markets, corporate earnings, currency movements, global monetary conditions, and international capital flows.

Additional Information

Vanguard FTSE Emerging Markets UCITS ETF (USD) Acc (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $5.96 billion.

Over the past 12 months, Vanguard FTSE Emerging Markets UCITS ETF (USD) Acc recorded a return of 11.32%, with its price trading between $76.24 and $90.32 during the same period.

The ETF is traded under the ticker VFEA.