Vanguard Emerging Market Funds: A Comprehensive Overview

Vanguard Emerging Market Funds offer a unique investment opportunity for those looking to diversify their portfolios. These funds focus on investing in emerging markets, which can provide higher growth potential compared to developed markets.

One of the key benefits of Vanguard Emerging Market Funds is their low cost. With expense ratios as low as 0.11%, investors can save on fees and keep more of their returns.

Investors can choose from a range of Vanguard Emerging Market Funds, each with its own investment strategy and risk level. Some funds focus on specific regions, such as Asia or Latin America, while others take a broader approach to investing in emerging markets.

By investing in Vanguard Emerging Market Funds, investors can gain exposure to a diverse range of emerging market stocks and bonds. This can help to reduce risk and increase potential returns over the long term.

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Vanguard emerging market funds have delivered varying returns over the years.

The annual return for the period 13/01/20 to 13/01/21 was 15.50%. This is a significant increase compared to the following years.

In the period 13/01/22 to 13/01/23, the annual return was -5.83%. This is a notable decline from the previous year's return.

The performance of Vanguard emerging market funds has also been measured by their ability to capture gains and losses. In the 1-year period, the capture ratio down was 74.09%, indicating that the fund managed to capture 74.09% of the market's losses.

Here's a summary of the fund's performance metrics:

The fund's performance has also been influenced by its correlation with the market. In the 1-year period, the correlation was 97.96%, indicating a strong relationship between the fund's performance and the market's performance.

The fund's risk-adjusted return has been relatively low, with a risk-adjusted return of -0.65% over the 10-year period. This suggests that the fund's returns have not kept pace with its level of risk.

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The Vanguard Emerging Markets Stock Index Fund and the Vanguard FTSE Emerging Markets ETF track an emerging-market stock index, with over 4,000 stocks in its portfolio.

The fund's geographical distribution is quite diverse, with a significant presence in China, accounting for 31.5% of the fund's assets. Taiwan and India follow closely, with 15.3% and 12% of the fund's assets, respectively.

The fund's income details are as follows: the historic yield is 2.19%, paid annually in the form of a dividend, with an ex-dividend date of 31 December 2024 and a payment date of 14 January 2025.

Here's a breakdown of the fund's top holdings, listed in order of their weight in the portfolio:

The fund's sector allocation is also worth noting, with a significant presence in Technology Hardware & Equipment (15.04%), Software & Computer Services (11.50%), and Banks (16.52%).

The fund's objective is to track the performance of the MSCI Emerging Markets Index.

To achieve this, the fund focuses on investing in a range of emerging markets around the world.

Let's take a look at the top 10 holdings of the fund, which include a mix of well-established and up-and-coming companies.

Here are the top 10 holdings:

The fund also spreads its investments across various sectors, with the top 10 sectors including finance, technology, and healthcare.

Here are the top 10 sectors:

Finally, the fund invests in companies from a range of countries, with the top 10 countries including those in Asia, Latin America, and Eastern Europe.

Here are the top 10 countries:

The Vanguard Emerging Markets Stock Index Fund and Vanguard FTSE Emerging Markets ETF are designed to track an emerging-market stock index, which is made up of over 4,000 stocks. This fund is rather top-heavy, with the top 10 stocks making up 18.1% of the fund's total holdings.

China is the largest market in the fund, making up 31.5% of the fund's assets as of October 31, 2017. Taiwan is the second-largest market, accounting for 15.3% of the fund's assets.

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The fund also has significant holdings in India, Brazil, and South Africa, which make up 12%, 8.1%, and 7% of the fund's assets, respectively. The top 10 markets in the fund, as of October 31, 2017, are listed below:

The fund's geographical distribution is diverse, with investments in various markets around the world.

Investing in income-generating assets can be a great way to earn a regular return on your investment. The historic yield of 2.19% is a promising figure, and the income is paid annually.

The type of payment is a dividend, which is a distribution of a portion of a company's profit to its shareholders. This is a common way for companies to return value to their investors.

The ex-dividend date is 31 December 2024, which means that you'll need to own the shares before this date to be eligible for the dividend payment. The payment date is 14 January 2025.

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Here's a breakdown of the top holdings in the portfolio, along with their respective weights:

It's worth noting that the weight of each security can fluctuate over time, so it's essential to keep an eye on the portfolio's composition.

The Vanguard Emerging Markets Fund comes with a $3,000 minimum initial investment and a 0.32% expense ratio for the mutual fund option.

This might seem like a lot, but it's worth noting that the Admiral shares option has a lower expense ratio of 0.14%, but the minimum investment is $10,000.

The ETF option, on the other hand, has a much lower minimum investment of just $43.60, and its expense ratio is also 0.14%.

However, it's essential to consider investment commissions, which can add up quickly if you plan to add to your investment often.

Fortunately, if you invest directly through a Vanguard brokerage account, you can buy this and all other Vanguard mutual funds and ETFs commission-free.

Here's a breakdown of the fees associated with the Vanguard Emerging Markets Fund:

The funds listed in the comparison table all have impressive one-year performance numbers, with the Vanguard Emerging Markets Stock Index Fund Institutional Plus Shares leading the pack with a 14.71% return.

The Lord Abbett Emerging Markets Equity Fund Class I and Class F both have identical one-year performance numbers of 14.67%.

It's worth noting that the Vanguard Emerging Markets Stock Index Fund Institutional Plus Shares has a slightly higher return than the Institutional Shares, which is a 0.04% difference.

Here are the top two funds with the highest one-year performance numbers:

When comparing funds in the emerging markets equity category, it's essential to consider their one-year performance. The Lord Abbett Emerging Markets Equity Fund Class I has a 1-year performance of 14.66%.

The Vanguard Emerging Markets Stock Index Fund Institutional Shares also has a 1-year performance of 14.67%. This is just 0.01% higher than the Lord Abbett Emerging Markets Equity Fund Class I.

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Interestingly, both the Lord Abbett Emerging Markets Equity Fund Class F and the Vanguard Emerging Markets Stock Index Fund Institutional Shares have the same 1-year performance of 14.67%. This suggests they are performing similarly in this category.

Here's a comparison of the funds in the emerging markets equity category:

Morningstar's analysis of VEMAX is based on a fundamental assessment of several key pillars.

Their overall rating is determined by this assessment.

VEMAX is evaluated based on its financial health, management quality, and valuation multiples.

These factors are crucial in determining the stock's potential for long-term growth.

Morningstar's analysis provides a comprehensive view of VEMAX's strengths and weaknesses.

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Diversification is key to a well-rounded portfolio. Emerging markets can be a great way to add some excitement, but they also come with higher risk.

A good rule of thumb is to limit your exposure to emerging markets to a small portion of your overall portfolio. The Vanguard Emerging Markets Fund offers a way to get some exposure with relatively low fees.

This fund has a diverse portfolio of over 4,000 stocks, which can help spread out risk.

The Vanguard Emerging Markets Stock Index Fund Admiral Shares, also known as VEMAX, has a symbol of US9220428414.

This fund is issued by Vanguard and has been available since its inception on June 23, 2006.

The type of fund is a diversified emerging markets fund, which means it invests in a variety of emerging markets around the world.

The currency in which the fund is traded is the US Dollar (USD).

The fund has a large volume of 16.51 billion units, indicating its popularity among investors.

Here is a summary of the key data for VEMAX:

The fund's custodian is JPMorgan Chase Bank, which is responsible for holding the underlying assets of the fund.

The last update for the fund's data was on February 10, 2025.