Vanguard FTSE Developed Markets Index Fund ETF Shares (VEA)

US ETF Vanguard FTSE Developed Markets Index Fund ETF Shares (VEA)

Profile:

VEA is an ETF that tracks the performance of the FTSE Developed All Cap Index, which comprises large-, mid-, and small-cap stocks from developed markets excluding the US and Canada. It provides broad exposure to developed international equities across various sectors and industries.

Objective:

VEA aims to track the performance of the FTSE Developed All Cap Index by investing in the underlying index constituents. It allows investors to diversify their portfolios and gain exposure to international developed markets.

Issuer:

Vanguard is a leading global investment management company with a long track record and solid reputation. It's known for its low-cost funds and index-tracking strategies.

• Reputation and Reliability: Highly reputable and reliable, with a long history of providing low-cost investment products.
• Management: Experienced and skilled investment team with a focus on index-tracking strategies.

Market Share:

VEA is one of the largest and most popular developed market ETFs, with a significant market share in its category.

Total Net Assets:

As of November 14, 2023, VEA has total net assets of approximately $259.38 billion.

Moat:

VEA's competitive advantages include:

• Low expense ratio: VEA has one of the lowest expense ratios among developed market ETFs.
• Diversification: Provides broad exposure to developed international equities across various sectors and industries.
• Liquidity: VEA is a highly liquid ETF with a high trading volume.
• Track record: VEA has a strong track record of closely tracking its target index.

Financial Performance:

VEA has historically performed well, outperforming the S&P 500 in some periods. It has generated an average annual return of over 8% in the past five years.

Benchmark Comparison:

VEA typically performs closely to its benchmark index, the FTSE Developed All Cap Index. Its tracking error is minimal, indicating its effectiveness in replicating the index's performance.

Growth Trajectory:

The developed international markets are expected to continue growing in the long term, driving potential growth for VEA.

Liquidity:

VEA has a high average daily trading volume and a tight bid-ask spread, making it easy to buy and sell shares.

Market Dynamics:

VEA is affected by various factors, including global economic growth, interest rates, currency fluctuations, and political events.

Competitors:

Key competitors include iShares Core MSCI EAFE ETF (IEFA), SPDR Portfolio Developed World ex-US ETF (SPDW), and Xtrackers Developed World ex-US Equity ETF (XDWD).

Expense Ratio:

VEA's expense ratio is 0.06%, making it one of the most affordable developed market ETFs available.

Investment Approach and Strategy:

VEA is a passively managed ETF that tracks the FTSE Developed All Cap Index. It invests directly in the index constituents in the same proportions as the index.

Key Points:

• Low-cost
• Diversified exposure to developed international equities
• Strong track record
• High liquidity
• Broad market exposure

Risks:

• Market risk: VEA's value can fluctuate due to changes in the underlying index's performance.
• Currency risk: VEA may be exposed to currency risk as it invests in international stocks.
• Volatility: Developed international markets can be volatile, leading to potential fluctuations in VEA's value.

Who Should Consider Investing:

VEA is a suitable investment for long-term investors seeking:

• International diversification
• Low-cost exposure to developed international equities
• A passive investment strategy

Fundamental Rating Based on AI:

Based on an AI analysis considering factors like financial performance, expense ratio, and market share, VEA receives a 9 out of 10 rating. This indicates its strong fundamentals, solid track record, and competitive advantage in the developed international equity ETF space.

Resources and Disclaimers:

• Vanguard Website: https://investor.vanguard.com/etf/profile/VEA/overview
• Morningstar: https://www.morningstar.com/etfs/arcx/vea/quote
• MarketWatch: https://www.marketwatch.com/investing/fund/vea?countrycode=xx
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial professional before making any investment decisions.