VEXC ETF: What Is It? Returns, Expense Ratio, Holdings, and Alternative ETFs
Vanguard's emerging markets ex-China ETF, VEXC, tracks the FTSE Emerging ex China Index and offers low-cost diversification across large- and mid-cap emerging market stocks outside China. The key points to compare against VWO and IEMG are China exposure, the expense ratio, and the dividend, and the fund carries heavy weightings in Taiwan and India.
SubscribeWhat Is the Vanguard Emerging Markets ex-China ETF?
This is a core ETF that tracks emerging market stocks excluding China. Based on the FTSE Emerging ex China Index, it holds large- and mid-cap emerging market companies in countries such as Taiwan, India, South Africa, and Brazil, weighted by market capitalization.
It suits long-term diversified investors who want emerging market exposure but prefer to manage their China allocation separately.
It is a passively managed (index-tracking) ETF run by Vanguard.
How Does the Vanguard Emerging Markets ex-China ETF Invest?
| Item | Details |
|---|---|
| Tracked Index | FTSE Emerging ex China |
| Management Style | Passive (index tracking) |
| Rebalancing Frequency | Reflects scheduled index changes |
| Dividend Frequency | Quarterly |
| Issuer | Vanguard |
| Total Expense Ratio | 0.07% |
The fund holds the constituents of the FTSE Emerging ex China Index in proportion to their market capitalization, using an index sampling technique to track a broad range of emerging market stocks efficiently. Its structural exclusion of China is the key difference from typical emerging market ETFs, and its weightings in Taiwan and India are relatively high.
- Emerging market exposure that structurally excludes China
- Vanguard's characteristically low expense ratio
Vanguard Emerging Markets ex-China ETF Size and Costs (AUM and Expense Ratio)
Assets under management (AUM) stand at $267.5M, and the total Expense Ratio is 0.07% per year.
The key difference from VWO, Vanguard's broad emerging markets ETF, is that China has been removed from the portfolio.
Vanguard Emerging Markets ex-China ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeEmerging market equities react sensitively to global risk appetite and dollar strength, and the fund is heavily influenced by its top country weightings, such as Taiwan's semiconductors and India's domestic demand. Short-term returns have tended to fluctuate with exchange rates and fund flows.
Demand to separate out China exposure has been a driver of inflows across the ex-China category as a whole. The fund is used in asset allocation approaches that keep emerging markets as a core holding while adjusting China through a separate product.
Vanguard Emerging Markets ex-China ETF Pros and Cons
Its strengths are a low expense ratio and exposure that excludes China, while its weaknesses are the volatility typical of emerging markets and concentration in a few top countries.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products to the Vanguard Emerging Markets ex-China ETF
VWO, IEMG, and EEM shown in the table are broad emerging market ETFs that include China, and whether China is included is the key difference from VEXC. A direct substitute in the same ex-China category is EMXC, which tracks an MSCI index. If you want core emerging market exposure that includes China, you can consider VWO, and if you only want to add China separately, you can also consider combining the fund with a dedicated China ETF.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 IEMG | iShares Core MSCI Emerging Markets ETF | $74.38 | +0.2% | $145.9B | 0.09% | 2.42% | +8.9% |
 VWO | Vanguard FTSE Emerging Markets ETF | $55.70 | +0.3% | $117.5B | 0.06% | 2.18% | +1.3% |
 EEM | iShares MSCI Emerging Markets ETF | $61.11 | +0.1% | $28.2B | 0.72% | 1.82% | +10.5% |
 AVEM | Avantis Emerging Markets Equity ETF | $85.98 | -0.1% | $26.7B | 0.33% | 2.79% | +10.9% |
 EMXC | IShares MSCI Emerging Markets ex China ETF | $89.70 | +0.0% | $25.4B | 0.25% | 2.14% | +24.1% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| TSM | Taiwan Semiconductor Manufacturing ADR | 0.67% | $398.63 | -1.9% | $2.07T | 25.7 | 1.05% |
| HDB | HDFC Bank Ltd ADR | 0.04% | $22.70 | +2.3% | $116.7B | 13.5 | 1.89% |
| IBN | ICICI Bank Ltd ADR | 0.02% | $30.06 | +2.1% | $107.9B | 17.1 | 0.96% |
| AU | AngloGold Ashanti Plc | 0.01% | $82.26 | +3.1% | $41.5B | 11.0 | 5.8% |
Vanguard Emerging Markets ex-China ETF Investor Checkpoints
Here are the points to review before investing in VEXC. It can serve as a low-cost emerging market core holding, but you should first confirm country concentration, currency exposure, and whether the China exclusion strategy suits you.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense ratio | Check the effect of cumulative costs over a long holding period | Low |
| 🌏 Country weights | Check concentration in top countries such as Taiwan and India | Large top-country weightings |
| 🇨🇳 China exclusion | Review whether the China exposure strategy fits your goals | China structurally excluded |
| 💱 Currency | Effect of dollar and emerging market currency moves | Not currency hedged |
Emerging market volatility and top-country concentration are the main drivers of short-term swings. In global risk-off periods, emerging market assets can swing more sharply than those of developed markets.
It is a suitable choice for investors who want to build a low-cost core emerging market position excluding China. For broad exposure that includes China, VWO and IEMG are worth considering, while VEXC or EMXC are candidates for those who want to maintain an ex-China strategy.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 18, 2026.
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