Vanguard Debuts Low-Cost, Emerging Markets ex-China ETF

Core Viewpoint - Vanguard has launched a new low-cost emerging markets ETF, the Vanguard Emerging Markets ex-China ETF (VEXC), which is timely given the increasing investor interest in emerging markets and potential interest rate cuts [1] Group 1: Fund Details - VEXC is offered with a low expense ratio of 0.07%, significantly lower than the ETF Database Category Average of 51 basis points and the FactSet Segment Average of 46 basis points for similar funds [2] - The fund tracks the FTSE Emerging ex China Index, providing a comprehensive measure of performance for large and mid-cap companies in emerging markets, excluding China [3] - The fund is designed to complement existing U.S. equities exposure and can work alongside other international funds for broader diversification [2] Group 2: Market Context - The current market environment, characterized by global de-dollarization and monetary easing by the U.S. Federal Reserve, makes emerging market exposure appealing, especially as these assets are often linked to the strength of local currencies [3] - Investors are increasingly seeking tailored exposure to emerging markets without the risks associated with Chinese equities, which are facing economic and geopolitical challenges [4] Group 3: Management and Advisory - The fund is advised by the Vanguard Equity Index Group (EIG), known for its leadership in equity indexing, with portfolio managers including Michael Perre, Jeffrey Miller, and John Kraynak, CFA [5]