Vanguard FTSE All-World ex-US Index Fund

Vanguard FTSE All-World ex-US Index Fund (VEU) is an ETF that tracks the FTSE All-World ex US Index. As of July 31, 2026, it held 3,853 large- and mid-cap stocks from developed and emerging markets outside the United States. Its 0.04% expense ratio (the yearly fee) is half the 0.08% average of similar funds. Vanguard FTSE Developed Markets ETF (VEA) costs 0.03% but leaves out emerging markets.

• Over the year to Oct 30, 2026, VEU returned +13.4%, 8th of 9 among similar funds.
• Its 5-year annualized return was +8.4%.
• Its worst full calendar year was 2022 (-15.6%); its best was 2025 (+32.3%).
• The deepest fall in its price history was 29.3% (Jun 14, 2021 to Oct 12, 2022), recovered by May 9, 2024.

As of Jul 31, 2026, the fund held 3,853 securities; the ten largest made up 14.32% of assets.

• Over the three months to Jul 31, 2026, investors added a net $2.69B (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +3.95%, +0.14%, -0.84%.

VEU is the exchange-traded share class of Vanguard FTSE All-World ex-US Index Fund, which aims to track the FTSE All-World ex US Index. That index covers stocks of large and midsize companies in developed and emerging markets outside the United States. It weights each company by float-adjusted market capitalization, that is, stock market value counting only publicly available shares, so the biggest companies carry the most weight.

Vanguard tries to replicate the index, holding all or substantially all of its stocks in about the same proportions; at least 80% of net assets normally stays in index stocks. Holdings change mainly as the index adds or drops companies. Turnover, the share of the portfolio replaced in a year, was 6%. As of July 31, 2026, the fund held 3,853 stocks, and the 10 largest, led by Taiwan Semiconductor (TSMC) at 4.4%, made up 14.3% of assets.

It is not a leveraged or options-based fund. On that date it also held 1.5% in cash and tiny positions in stock index futures and currency forwards, contracts tied to an index or exchange rate, worth about zero on net. Because its stocks trade in foreign currencies, a stronger dollar can cut returns. The ETF shares trade on NYSE Arca at market prices, which can differ slightly from the holdings' value.

• VEU charges 0.04% a year, versus an average of 0.08% for the similar funds below (3rd of 9, cheapest first).
• Of that, 0.02% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $4 in the first year and $51 over 10 years (assuming a 5% annual return).

It gives low-cost, broad exposure to large and mid-size stocks in both developed and emerging markets outside the US, so it can fill the international stock slot of a portfolio.

VEU spreads money across thousands of large and mid-size companies outside the US. Costs are low: the SEC's standard example puts fees on $10,000 at about $4 after one year and $51 after 10 years. As of October 27, 2026, its dividends over the past year equaled 2.41% of its price. It pays them quarterly.

It can fall hard. It lost 23.67% in the first quarter of 2020, during the COVID crash. It fell 28.3% in the 2022 bear market and took 17 months after the October low to recover. Its deepest drop, 29.3% from June 2021 to October 2022, took about 19 months to recover from, and 2022 was its worst calendar year, down 15.46%. Figures for 2008 aren't available. Anyone drawing income in a slump like that may have to sell shares at low prices. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.