Vanguard Launches Low-Cost International ETFs Targeting Value, Growth Exposure

Vanguard Developed Markets ex-US Growth Index ETF -0.60%
Vanguard Developed Markets ex-US Value Index ETF -0.56%
Vanguard Tax Managed Fund Ftse Developed Mkts Etf -0.73%
Vanguard Ftse Emerging Markets Etf -0.18%

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