Vanguard Launches Low-Cost International ETFs Targeting Value, Growth Exposure
Vanguard Developed Markets ex-US Growth Index ETF VDG | 75.95 | -0.60% |
Vanguard Developed Markets ex-US Value Index ETF VDV | 75.16 | -0.56% |
Vanguard Tax Managed Fund Ftse Developed Mkts Etf VEA | 68.82 | -0.73% |
Vanguard Ftse Emerging Markets Etf VWO | 58.80 | -0.18% |
Vanguard has rolled out two new international equity ETFs.
Vanguard Developed Markets ex-US Value Index ETF (BATS:VDV) and Vanguard Developed Markets ex-US Growth Index ETF (BATS:VDG) each offer targeted exposure to developed markets outside the U.S.
The funds rank among the lowest-cost options in their category, reinforcing Vanguard's push to undercut active strategies in international equities.
• What’s next for VDV stock?
According to Vanguard, the new ETFs allow investors to fine-tune global allocations, either by tilting toward specific styles or complementing broader international funds such as Vanguard FTSE Developed Markets ETF (NYSE:VEA) and Vanguard Emerging Markets ETF (NYSE:VWO).
Key Features
- Style-specific exposure: Separate access to developed ex-U.S. value (VDV) and growth (VDG) equities
- Ultra-low cost: Both funds carry a 0.08% expense ratio
- Portfolio flexibility: Can be used individually for style tilts or combined for balanced developed market exposure
- Diversification tool: Complements existing international ETFs such as VEA and VWO
- Index-driven approach: Offers a passive alternative in a segment largely dominated by active managers
International ETFs have been gaining steam since March, when ETFs tracking international markets attracted $32.3 billion in inflows despite an 8% decline in international equities.
This reveals investors have started using a systematic approach in their investments, rather than trying to time the market, making this a great time for Vanguard to launch the two ETFs.
Photo: PJ McDonnell via Shutterstock
