FTSE Emerging Markets ETF (VWO)

Also available as a 

mutual fund.

Indexed to FTSE Emerging Index

  Fact sheet (12/31/2013)

Summary of this fund

Vanguard FTSE Emerging Markets ETF seeks to track the performance of a benchmark index that measures the investment return of stocks issued by companies located in emerging market countries.

Investment approach

  • Seeks to track the performance of the FTSE Emerging Index.
  • Passively managed, using index sampling.
  • The fund invests substantially all of its assets in the stocks included in the index.

About the benchmark

  • The FTSE Emerging Index is a market-capitalization-weighted index representing large- and mid-cap stocks of companies located in emerging markets around the world.
  • Brazil, Russia, India, Taiwan, China, and South Africa are among the markets included in the index.

PRICE AND DISTRIBUTIONS

Price and distributions

as of 04/22/2014

Market price

The price at which a security trades in the secondary market. The market price is determined by the midpoint between the bid and asked prices as of the closing time of the New York Stock Exchange (typically 4 p.m., Eastern time) on business days.

Change $/%
$41.15
– $0.15 negative change   – 0.36%
NAV

The market value of a mutual fund's total assets, minus liabilities, divided by the number of shares outstanding. The value of a single share is called its share value or share price.

Change $/%
$41.19
– $0.12 negative change   – 0.29%
Dividend yield

The annual rate of return on a share of stock, determined by dividing the annual dividend by its current share price. In a stock mutual fund, this figure represents the average dividend yield of the stocks held by the fund.

2.58%

KEY FUND FACTS

Key fund facts

Expense ratio
0.15% as of 02/27/2014
Lipper peer average
expense ratio
1.54% as of 12/31/2013
Designation
International Diversified Emerging Markets
Inception on
03/04/2005
Earliest share class
inception on
05/04/1994
Total net assets

This represents the total net assets for all share classes of Vanguard's U.S. funds that share the same investment strategy, management and holdings, but does not include any collective trusts sharing the same investment mandate.

$58.3 billion as of 03/31/2014
Net assets for
VWO
 
$42.4 billion as of 03/31/2014
Holdings 
961 as of 03/31/2014
Management style
Index
Benchmark
FTSE Emerging Index (TGPVAN30)
Turnover rate 
 26.00%(Fiscal year-end  10/31/2013)

TRADING

Trading

IOV:

Intraday Optimized Value Ticker
Intraday Optimized Value (IOV), also known as the Intraday Indicative Value (IIV), is the calculated per share price of the ETF which is published every 15 seconds based on the last sale price of each of the underlying securities in the portfolio basket, plus any estimated cash amounts associated with the creation unit.

VWO.IV
Outstanding shares:
1,044,678,639 as of 03/31/2014
ETF exchange:
NYSE Arca

Objective

Vanguard FTSE Emerging Markets ETF seeks to track the performance of a benchmark index that measures the investment return of stocks issued by companies located in emerging market countries.

Investment approach

  • Seeks to track the performance of the FTSE Emerging Index.
  • Passively managed, using index sampling.
  • The fund invests substantially all of its assets in the stocks included in the index.

About the benchmark

  • The FTSE Emerging Index is a market-capitalization-weighted index representing large- and mid-cap stocks of companies located in emerging markets around the world.
  • Brazil, Russia, India, Taiwan, China, and South Africa are among the markets included in the index.

Total returns

as of 03/31/2014

View as:

as of 03/31/2014

View as:
15%
10
5
0
-5%
 
 
 
 
  YTD 1 year 5 year 10 year Since inception

03/04/2005

Market price  – 1.12% – 2.55% 13.88% 7.84%
NAV 
– 0.35% – 2.80% 13.90% 7.85%
Benchmark

Spliced Emerging Markets Index

*
– 0.13% – 2.65% 14.15%

* Select Emerging Markets Index through August 23, 2006; MSCI Emerging Markets Index through January 9, 2013; FTSE Emerging Transition Index through June 27, 2013; and FTSE Emerging Index thereafter.

The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so investors' shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited.


Regional exposure as of 03/31/2014

 as of 03/31/2014
  Region  VWO Benchmark

FTSE Emerging Index

+/- Weight
Emerging Markets 100.0% 100.0% 0.0%
0%
100%
Total 100.0% 100.0%  

Top 10 countries as of 03/31/2014

 as of 03/31/2014
Country Region VWO Benchmark

FTSE Emerging Index

+/- Weight
China Emerging Markets 21.2% 21.1% 0.1%
Taiwan Emerging Markets 13.6% 13.6% 0.0%
Brazil Emerging Markets 13.2% 13.3% – 0.1%
India Emerging Markets 10.1% 9.9% 0.2%
South Africa Emerging Markets 9.7% 9.7% 0.0%
Mexico Emerging Markets 5.8% 5.8% 0.0%
Russia Emerging Markets 5.8% 5.7% 0.1%
Malaysia Emerging Markets 4.9% 4.8% 0.1%
Indonesia Emerging Markets 2.9% 2.9% 0.0%
Thailand Emerging Markets 2.8% 2.8% 0.0%
Top 10 equals 90.0% of stock

Country diversification details  

Sector weightings as of 03/31/2014

as of 03/31/2014
  Sector  VWO Benchmark

FTSE Emerging Index

+/- Weight
Financials 29.1% 29.3% – 0.2%
Oil & Gas 11.8% 11.9% – 0.1%
Industrials 10.0% 10.0% 0.0%
Technology 9.9% 9.8% 0.1%
Consumer Goods 9.7% 9.7% 0.0%
Basic Materials 8.4% 8.4% 0.0%
Telecommunications 8.0% 7.9% 0.1%
Consumer Services 7.1% 7.1% 0.0%
Utilities 3.9% 3.9% 0.0%
Health Care 2.1% 2.0% 0.1%
Other 0.0% 0.0% 0.0%
0%
30%
Total 100.0% 100.0%

Sector categories are based on the Industry Classification Benchmark system.

Top 10 holdings as of 03/31/2014

 as of 03/31/2014
Rank Holding
1 Taiwan Semiconductor Manufacturing Co. Ltd.
2 Tencent Holdings Ltd.
3 Petroleo Brasileiro SA
4 China Construction Bank Corp.
5 China Mobile Ltd.
6 Industrial & Commercial Bank of China Ltd.
7 Vale SA
8 Naspers Ltd.
9 Gazprom OAO
10 Itau Unibanco Holding SA
Top 10 equals 15.7% of net assets

Portfolio holdings may exclude any temporary cash investments and equity index products.

Holdings policy for this fund  

Fundamentals

Stockas of 03/31/2014 VWO Benchmark

FTSE Emerging Index

Number of stocks 961 889
Median market cap $16.9 billion $16.8 billion
P/E ratio 13.6x 12.9x
P/B ratio 1.7x 1.7x
Turnover rate 26.0% Fiscal year end 10/2013 N/A
% Emerging 100.00% 100.00%
% Developed 0.00% 0.00%

Risk and volatility as of 03/31/2014

as of 03/31/2014
  VWO Benchmark

Spliced Emerging Markets Index

R-squared N/A 0.98
Beta N/A 1.01
Alpha – 0.02 N/A
Standard deviation 20.00% 19.66%
Sharpe ratio – 0.19 – 0.17

Risk and volatility are based on the share class with the earliest inception date.

Risk measures are calculated from trailing 36-month fund returns relative to the associated benchmarks.

An investment in the fund could lose money over short or even long periods. You should expect the fund’s share price and total return to fluctuate within a wide range, like the fluctuations of the overall stock market. Although FTSE Emerging Markets ETFs are listed for trading on the NYSE Arca, it is possible that an active trading market may not be maintained. Trading of FTSE Emerging Markets ETFs on the NYSE Arca may be halted if NYSE Arca officials deem such action appropriate, if FTSE Emerging Markets ETFs are delisted from the NYSE Arca, or if the activation of marketwide “circuit breakers” halts stock trading generally. The fund’s performance could be hurt by:

  • Stock market risk: The chance that stock prices overall will decline. Stock markets tend to move in cycles, with periods of rising stock prices and periods of falling stock prices. The fund’s investments in foreign stock markets can be riskier than U.S. stock investments. The prices of foreign stocks and the prices of U.S. stocks have, at times, moved in opposite directions. In addition, the fund’s target index may, at times, become focused in stocks of a particular sector, category, or group of companies.
  • Country/Regional risk: The chance that world events—such as political upheaval, financial troubles, or natural disasters—will adversely affect the value of securities issued by companies in foreign countries or regions. Country/regional risk is especially high in emerging markets. The index’s, and therefore the fund’s, heavy exposure to China, Brazil, and Taiwan subjects the fund to a higher degree of country risk than that of more geographically diversified international funds.
  • Emerging markets risk: The chance the stocks of companies located in emerging markets will be substantially more volatile, and substantially less liquid, than the stocks of companies located in more developed foreign markets.
  • Currency risk: The chance that the value of a foreign investment, measured in U.S. dollars, will decrease because of unfavorable changes in currency exchange rates.
  • Index sampling risk: The chance that the securities selected for the fund, in the aggregate, will not provide investment performance matching that of the index. Index sampling risk for the fund should be low.




Vanguard ETF Shares can be bought and sold only through a broker (who may charge a commission) and cannot be redeemed with the issuing fund. The market price of Vanguard ETF Shares may be more or less than net asset value. Investments are subject to market risk. Go to the performance page to read more about risk and volatility.

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