Vanguard’s New ETF Bets on Emerging Markets—Without China’s Risks

A bold shift in investing: Vanguard’s latest ETF skips China entirely. Can this strategy unlock safer growth in volatile emerging markets?

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2025 November 27 . 3:21 PM

1 min read

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Vanguard’s New ETF Bets on Emerging Markets—Without China’s Risks

Vanguard has launched a new exchange-traded fund (ETF) that focuses on emerging markets while excluding China. The Vanguard Emerging Markets ex-China ETF (VEXC) aims to track the FTSE Emerging ex China Index, which includes over 1,000 companies such as Taiwan Semiconductor and Infosys. The move comes as investors seek growth opportunities but remain cautious about risks tied to the stock market today's less transparent markets and geopolitical tensions.

VEXC was introduced in September and has already attracted around $50 million in assets. Since its launch, the fund has delivered a return of roughly 4%. By excluding China, it avoids exposure to the country's regulatory unpredictability, human rights concerns, and less transparent financial systems. Instead, it targets other fast-growing economies with large-cap companies.

VEXC offers investors a way to tap into emerging market growth without exposure to China's risks. The fund's early performance suggests demand for such alternatives.