Vanguard fund strips out China in emerging markets investment play

Group 1: Investment Opportunities and Risks - Investors traditionally target emerging markets for higher growth opportunities, with China being a significant focus, but risks remain due to secrecy, human rights issues, and less transparency in capital markets [1] - The relationship between the U.S. and China has become more complicated under President Trump, with ongoing tensions over tariffs and rare earth minerals [1] Group 2: Vanguard's Emerging Markets ETF - Vanguard has launched the Vanguard Emerging Markets ex-China ETF (VEXC) to provide exposure to major emerging markets like Brazil, India, and Taiwan while avoiding the volatility associated with Chinese companies [2][3] - The ETF aims to mirror the FTSE Emerging ex China Index, comprising over 1,000 companies, and has nearly reached $50 million in assets since its launch in September, returning about 4% [5] - The FTSE Emerging ex China Index has advanced more than 26% for the year, indicating strong performance in emerging markets excluding China [6]