Vanguard FTSE Pacific Index Fund ETF Shares (VPL)

ETF Vanguard FTSE Pacific Index Fund ETF Shares (VPAC) Overview

Profile: VPAC is an exchange-traded fund (ETF) that seeks to track the performance of the FTSE Developed Asia Pacific ex Japan Index. This index represents publicly traded large- and mid-capitalization companies in developed markets across the Asia-Pacific region, excluding Japan. VPAC primarily invests in equities, offering broad exposure to this specific market segment.

Objective: The primary investment goal of VPAC is to provide investors with long-term capital appreciation by mirroring the performance of the FTSE Developed Asia Pacific ex Japan Index.

Issuer: The ETF is issued by Vanguard, a renowned investment management company with a long-standing reputation for low-cost index funds and a commitment to investor value. Vanguard boasts a robust track record and is considered one of the most reliable players in the financial market.

Market Share: VPAC holds a significant market share within its specific niche, being one of the largest and most liquid ETFs tracking the FTSE Developed Asia Pacific ex Japan Index.

Total Net Assets: VPAC has approximately $5.87 billion in total net assets under management as of October 26, 2023.

Moat: VPAC's competitive advantages include its low expense ratio, diversification across multiple sectors and countries, and its established track record of closely tracking its benchmark index.

Financial Performance: Historically, VPAC has delivered positive returns, closely mirroring the performance of the FTSE Developed Asia Pacific ex Japan Index. However, past performance is not indicative of future results, and the ETF's returns may fluctuate based on market conditions.

Growth Trajectory: The Asia-Pacific region, excluding Japan, is expected to see continued economic growth in the coming years, which could positively impact the performance of VPAC.

Liquidity: VPAC enjoys a high average trading volume, making it a relatively liquid ETF with tight bid-ask spreads.

Market Dynamics: Factors such as economic growth in the Asia-Pacific region, global trade dynamics, and individual company performances within the index can significantly impact VPAC's market environment.

Competitors: Key competitors for VPAC include iShares MSCI AC Asia ex Japan ETF (AAXJ) and SPDR S&P Pan Asia ex-Japan ETF (GXC). These ETFs offer similar exposure but may differ in terms of expense ratios and tracking methodologies.

Expense Ratio: VPAC has a low expense ratio of 0.10%, making it an attractive option for cost-conscious investors.

Investment Approach and Strategy: VPAC passively tracks the FTSE Developed Asia Pacific ex Japan Index and invests in the same proportions as the index constituents. The ETF holds a diversified portfolio of stocks across various sectors and countries within the Asia-Pacific region, excluding Japan.

Key Points:

• Low expense ratio
• Diversified exposure to Asia-Pacific markets excluding Japan
• Tracks a well-known and established index
• High liquidity

Risks:

• Volatility: VPAC's value can fluctuate significantly based on market conditions.
• Market Risk: The ETF is exposed to risks associated with the Asia-Pacific region, including geopolitical events, economic instability, and currency fluctuations.

Who Should Consider Investing: Investors seeking diversified exposure to the Asia-Pacific region excluding Japan and who are comfortable with market volatility may find VPAC an attractive investment option.

Fundamental Rating Based on AI: 8 out of 10.

VPAC demonstrates strong fundamentals, including a low expense ratio, diversified portfolio, and a reputable issuer. However, its performance is highly dependent on the underlying index, and investors should consider the associated risks before investing.

Resources and Disclaimers:

This analysis is based on publicly available information, including the following sources:

• Vanguard website: https://investor.vanguard.com/etf/profile/vpac/overview
• Morningstar: https://www.morningstar.com/etfs/arcx/vpac/quote
• Yahoo Finance: https://finance.yahoo.com/quote/VPAC?p=VPAC
• FTSE Russell: https://www.ftserussell.com/products/indices/ftse-developed-asia-pacific-ex-japan-index-net-total-return

Disclaimer: This information is for informational purposes only and should not be considered investment advice. Please consult a financial professional before making any investment decisions.