About VEA ETF
Overview:
Vanguard Developed Markets ETF (VEA) invests in a diversified group of stocks of large-, mid-, and small-cap companies located in Canada and the major markets of Europe and the Pacific region and is managed by Vanguard that has a total AUM of $5.1T.
VEA is an exchange-traded fund incorporated in the USA in July 2007. The fund holds 3,899 securities.
About the Fund Manager:
Founded in 1975, Vanguard is the second largest asset manager in the world managing $5.1T. It is the largest provider of mutual funds and the second-largest provider of exchange-traded funds (ETFs) in the world after BlackRock's iShares.
Investment Strategy:
It tracks the investment performance of the FTSE Developed All Cap ex US Index. It matches the performance of a diversified group of stocks located in Canada and the major markets of Europe and the Pacific region.
Sector:
VEA has invested in Financials (20%), Industrials (14%), Consumer Cyclical (12%), Consumer Non-Cyclical (10%) and Healthcare (12%).
Geography:
Top Geographical allocation of VEA is Japan (22%), United Kingdom (13%), Canada (8%), France (8%) and Germany (8%).
Recommended for:
Growth
Its top holdings include Nestle SA, Samsung Electronics Company Ltd., HSBC Holdings PLC, Novartis AG and Toyota Motor Corp. The fund's top-10 holdings account for about 8% of the fund's portfolio.
According to ETFdb.com, "VEA is a core holding of many long-term portfolios, and can also be used as an efficient tool for overweighting ex-U.S. developed markets."
Additional Information:
1. Fund Factsheet
2. A Cheap International ETF And Its Epic Growth Spurt
3. The 5 Largest Developed Market ETFs (EFA, VEA)
4. 3 Ultra-Cheap ETFs to Buy for the Best Developed Markets Stocks
How did we identify this ETF:
A complete pool of 2100+ ETFs is screened on various qualitative and quantitative parameters to evaluate efficiency, tradability and fit. The metrics used were alpha, beta and R-Squared with respect to the segment benchmark and ETF specific metrics such as expense ratio, drawdown, volatility and the overall rating. We evaluate all ETFs and assign a composite score based on our analysis and then select the top ones in a category based on that comprehensive score by the in-house research/quant analysts team. The fund's expense ratio is among the segment's lowest and its basket is easy to access, especially at the retail level, where bid/ask spreads are tight leading to the selection for Developed Markets segment. The strategy is rebalanced on a quarterly basis with the rebalancing mechanism being determined by an algorithm that takes into account the overall performance of the strategy so far.
