This Emerging Markets ETF Doesn't Get A Lot Of Press, But Don't Worry (VEA)

Posted on 11/20/09 at 3:22pm by The ETF Professor

When it comes to emerging markets ETFs that focus on more than one country, the iShares MSCI Emerging Markets Index (NYSE: EEM) is the 800-lb. gorilla in the room. EEM trades a huge amount of shares per day and the ETF is considered the bellwether among emerging markets ETF.

That said, the ETF Professor would like to call your attention to the Vanguard Europe Pacific ETF (NYSE: VEA), which is up a tidy 25% year-to-date.

VEA tracks the MSCI EAFE Index. VEA's largest holding HSBC (NYSE: HBC) accounts for just 1.74% of the total makeup, and other familiar names include BP (NYSE: BP), Toyota Motor (NYSE: TM) and Telefonica (NYSE: TEF).

Obviously, VEA emphasizes developed markets in addition to emerging markets, so the ETF can act as a hedge against volatile emerging markets plays. The expense ratio is just 0.11%.