VEA tracks the FTSE Developed All Cap ex US Index, covering large, mid and small-cap companies in developed markets outside the United States. Europe (including the UK, France, Germany and Switzerland) and Japan make up the largest weights, with Australia, Canada and other developed Asia-Pacific markets also represented. The fund holds thousands of companies. Currency exposure is not hedged, so changes in the euro, yen and pound against the US dollar affect returns for US-based investors. International developed markets have traded at lower valuation multiples than US stocks for much of the past decade, and they have different sector weights, with less technology and more financials and industrials. VEA is commonly used as the international developed markets component of a diversified portfolio.
