Vea

Vanguard FTSE Developed Markets ETF (VEA) is a core holding for many long-term portfolios, offering exposure to developed markets outside of North America, including Western Europe, Japan, and Australia. Here's a detailed analysis:

1. Performance Overview: VEA has shown a YTD return of 5.38%, a 1-year return of 11.64%, and a 3-year return of 1.20%. The growth of 10,000 units in the ETF shows a decrease of 3.82% in the index price and a decrease of 5.54% in the quartile rank.

2. Expense Ratio and Efficiency: The ETF has an expense ratio of 0.06%, which is significantly lower than some of its competitors, making it a cost-efficient choice for investors.

3. Index Tracking: VEA aims to track the FTSE Developed ex-US All Cap Net Tax (US RIC) Index, which includes approximately 3,957 common stocks across various market capitalizations and regions.

4. Sector Exposure: The ETF is heavily exposed to large-cap stocks, which can introduce potential sector biases. Investors may consider complementary exposure through small-cap funds like SCZ.

5. Top Holdings: The top holdings in VEA include Novo Nordisk A/S, ASML Holding NV, Nestle S.A., Toyota Motor Corp., and Samsung Electronics Co., Ltd..

6. Diversification and Concentration: With nearly 1,000 component securities, VEA offers a broad-based strategy with a relatively balanced allocation across its holdings. The ETF's concentration in the top 15 holdings is 15.63%, which is lower than the category average of 30.01%, indicating a more diversified portfolio.

7. Valuation and Dividend: The P/E ratio for VEA is 12.60, which is higher than the category average of 10.16, suggesting a potentially richer valuation compared to its peers. The dividend yield for VEA is $0.46, which is in line with the category average.

In conclusion, Vanguard FTSE Developed Markets ETF (VEA) is a well-diversified and cost-efficient investment option for investors looking to gain exposure to developed markets outside of North America. Its performance, expense ratio, and top holdings make it a suitable choice for long-term investors seeking global market exposure.