Vanguard FTSE Developed World UCITS ETF
Stock market ticker: VEVE/VHVG
Total expense ratio: 0.12%
What does it invest in?
The Vanguard FTSE Developed World UCITS ETF (VEVE/VHVG) is designed to give investors exposure to a broad range of developed markets across the globe. This ETF tracks the performance of the FTSE Developed Index, which includes large and mid-cap companies from developed economies worldwide. The index encompasses a diverse array of industries and sectors, making it a comprehensive representation of the developed world’s equity markets.
VEVE/VHVG’s underlying index does not focus on specific themes or disruptive technologies, but rather seeks to capture the overall performance of developed world equities. As such, it includes companies from sectors like technology, healthcare, finance, consumer goods, and more.
One notable feature of VEVE/VHVG is its relatively low total expense ratio (TER) of 0.12% p.a. – in short, it’s a cost-efficient fund. This low expense ratio may make VEVE/VHVG an attractive option for investors looking for cost-effective exposure to developed world equities.
Why would you consider it for your portfolio?
Investors looking for broad exposure to developed markets around the world may find VEVE/VHVG appealing. This ETF offers a simple and efficient way to invest in a wide range of companies from developed economies, providing diversification benefits to your portfolio.
The low expense ratio of 0.12% p.a. is a significant advantage, as it minimises the costs associated with holding the ETF. Lower expenses mean that a larger portion of your investment returns remain in your pocket, potentially enhancing long-term returns.
Furthermore, VEVE/VHVG’s passive investment approach involves replicating the performance of the FTSE Developed Index. By not targeting any specific areas, it offers exposure to various industries and sectors, allowing investors to benefit from the overall growth of developed economies.
Does it pay an income?
Vanguard FTSE Developed World primarily focuses on capital appreciation rather than generating immediate income for investors. However, it is available in both distributing (VEVE) or accumulating (VHVG) forms. This gives investors the choice of reinvesting any dividends to accumulate over time, or having them paid out as an income.
You can invest in Vanguard FTSE Developed World UCITS ETF (VEVE/VHVG) via InvestEngine’s commission-free DIY platform.
Is this ETF a part of your wider investment portfolio? If so, are you happy with it? Leave a comment below.
When investing, your capital is at risk.