Investing in Emerging Markets with VEE ETF: A Comprehensive Review -

VEE ETF Investment objective

For Canadian investors seeking to diversify their portfolio, the Vanguard FTSE Emerging Markets All Cap Index ETF offers a valuable opportunity. This ETF aims to mirror the performance of a comprehensive emerging markets index, including the rapidly growing Chinese A Inclusion market. It provides exposure to a wide spectrum of companies, encompassing large, mid-sized, and small-cap stocks, all within emerging markets. By investing directly or indirectly in these assets, Canadian investors can enhance their portfolio’s diversification and tap into the potential growth opportunities presented by emerging markets.

FTSE Emerging Markets All Cap China A Inclusion Index

The FTSE Emerging Markets All Cap China A Inclusion Index is a market-capitalization weighted index that tracks the performance of stocks across various market segments, including large, mid, and small-cap stocks within emerging markets.

The FTSE Emerging Markets All Cap China A Inclusion Index encompasses a diverse set of attributes, making it a compelling option for investors. With a substantial number of constituents totaling 4,535, this index provides broad exposure to emerging market opportunities. The impressive Net Market Capitalization (USDm) of 7,051,011 demonstrates the significant market value represented within the index.

Moreover, the index showcases an attractive dividend yield of 2.78%, offering the potential for income generation. When examining constituent sizes, the index maintains a healthy level of diversity. The average constituent size, at 1,555 USDm, signifies a well-rounded mix of companies, while the largest constituent, at 413,744 USDm, adds stability without overwhelming the index. Even the smallest constituent at 3 USDm contributes to the index’s inclusivity.

The median size of 298 USDm further emphasizes the balanced nature of the index’s constituents. Additionally, the weight of the largest constituent, comprising 5.87% of the index, remains reasonable, preventing an excessive concentration of risk.

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Portfolio by Size (VEE ETF)

Captalization	Fund	Benchmark	+/- Weight
Large	54.38%	23.50%	+ 30.88%
Medium/Large	5.94%	17.30%	− 11.36%
Medium	18.09%	26.00%	− 7.91%
Medium/Small	8.76%	23.30%	− 14.54%
Small	11.16%	9.00%	+ 2.16%

Sector allocation


Sector	Fund	Benchmark	+/- Weight
Technology	22.8%	22.42%
Financials	20.72%	20.8%
Consumer Discretionary	13.72%	13.68%
Industrials	8.71%	9.05%
Basic Materials	7.39%	7.43%
Consumer Staples	6.22%	6.25%
Energy	6.08%	5.95%
Health Care	4.25%	4.26%
Telecommunications	3.87%	3.9%
Utilities	3.28%	3.28%
Real Estate	2.97%	2.93%
Other	0.0%	0.07%
Total	100.0%	100.0%

Portfolio of holding VEE ETF

Holding Name	% of Market Value	Sector	Market Allocation	Market Value	Shares
Taiwan Semiconductor Manufacturing Co. Ltd.	4.86%	Semiconductors	TW	$80,644,477.88	3,473,418
Tencent Holdings Ltd.	3.52%	Consumer Digital Services	KY	$58,318,056.15	1,041,501
Alibaba Group Holding Ltd.	2.72%	Diversified Retailers	KY	$45,117,442.08	2,876,980
MKTLIQ	1.52%	—	US	$25,147,482.10	186,131
SLBBH1142	1.42%	—	US	$23,491,343.76	173,873
Reliance Industries Ltd.	1.33%	Oil Refining and Marketing	IN	$21,980,769.27	559,966
Meituan	1.2%	Consumer Digital Services	KY	$19,941,283.74	891,780