Spotlight: Vanguard All-World ex-US Shares Index ETF (ASX: VEU)
Over the past 18 months, we've been using our Spotlight series to shine a light on our ETF portfolios. We're now expanding the series to focus on the individual ETFs that help power those portfolios - or are available through InvestSMART Custom.
This time, we're focusing on the Vanguard All-World ex-US Shares Index ETF (ASX: VEU), which is part of our Custom offering. Here's what you need to know.
About the Vanguard All-World ex-US Shares Index ETF (ASX: VEU)
The Vanguard All-World ex-US Shares Index ETF (ASX: VEU) invests in around 3,500 companies listed in developed and emerging markets, outside of the United States.
Vanguard says the ETF suits buy-and-hold investors seeking long-term capital growth, international diversification (excluding US securities), and who have a higher tolerance for the risks associated with investing in the share market. The ETF is not hedged, so investors will also be exposed to currency fluctuations.
Here are a few quick facts about VEU:
- Investment manager: Vanguard
- Inception date: 12 May 2009
- Size: $4.19 billion
- Management fee: 0.04%
- Benchmark index: FTSE All-World ex US Index
- InvestSMART rating: 5 stars
- Distribution frequency: Quarterly
Where is VEU invested?
The ETF is currently invested in 3,812 companies. The top 10 holdings, which make up 10.3% of the portfolio, are listed below.
Top 10 holdings
|
Company |
% of assets |
|
Taiwan Semiconductor Manufacturing Co Ltd |
2.41% |
|
Tencent Holdings Ltd |
1.22% |
|
SAP SE |
1.04% |
|
ASML Holding NV |
0.90% |
|
Nestle SA |
0.86% |
|
Alibaba Group Holding Ltd |
0.76% |
|
Novartis AG |
0.72% |
|
Novo Nordisk A/S |
0.71% |
|
Roche Holding AG |
0.70% |
|
Toyota Motor Corp |
0.69% |
Source: Vanguard. Holdings as of 31 May 2025.
VEU has investments in more than 40 countries. The top 10 are:
Market allocations
|
Country |
Fund |
|
Japan |
15.8% |
|
United Kingdom |
9.2% |
|
China |
8.6% |
|
Canada |
6.7% |
|
France |
6.5% |
|
Germany |
6.3% |
|
Switzerland |
5.9% |
|
India |
5.7% |
|
Taiwan |
5.0% |
|
Australia |
4.6% |
Source: Vanguard. Holdings as of 31 May 2025.
From a sector perspective, as of 31 May 2025, VEU's holdings include Financials (24.4%), Industrials (15.3%), Technology (13.5%), Consumer Discretionary (12.1%) and Health Care (8.3%).
How has VEU performed?
VEU has delivered strong long-term results, returning an average of 8.42% a year since it launched in May 2009. In the 12 months to the end of June 2025, the ETF was up 20.41%.
VEU performance
|
1 year |
3 yrs p.a. |
5 yrs p.a. |
10 yrs p.a. |
SI p.a.1 |
|
|
Total return |
20.41% |
15.85% |
11.47% |
8.09% |
8.42% |
|
Benchmark |
20.07% |
15.96% |
11.55% |
8.12% |
— |
Source: Vanguard. Returns for the period ending 30 June 2025. 1Since inception on 12 May 2009.
Key takeouts
With investments in more than 3,500 companies across more than 40 countries around the world, VEU offers a high level of diversification for investors looking for international exposure. The management fee is low and it has delivered strong results over the long term. Of course, keep in mind that past performance is not a guarantee of future returns.
Want to compare ETFs? Check out our handy online ETF filter tool. It can help you narrow down your options based on filters such as investment category or InvestSMART's star rating. If you'd like help selecting the right InvestSMART ETF portfolio for you check out our free statement of advice quiz. It will show you which one may best suit your goals and investment timeframe.
Frequently Asked Questions about this Article…
The Vanguard All-World ex-US Shares Index ETF (ASX: VEU) is an exchange-traded fund that invests in approximately 3,500 companies across developed and emerging markets outside of the United States. It aims to provide long-term capital growth and international diversification.
The VEU ETF is suitable for buy-and-hold investors seeking long-term capital growth and international diversification, excluding US securities. It's ideal for those with a higher tolerance for market risks and who are comfortable with currency fluctuations, as the ETF is not hedged.
As of May 2025, the top holdings in the VEU ETF include Taiwan Semiconductor Manufacturing Co Ltd, Tencent Holdings Ltd, SAP SE, ASML Holding NV, and Nestle SA, among others. These top 10 holdings make up 10.3% of the portfolio.
The VEU ETF invests in more than 40 countries, with the top allocations being Japan, the United Kingdom, China, Canada, and France. This provides a broad international exposure for investors.
Since its inception in May 2009, the VEU ETF has delivered an average annual return of 8.42%. In the 12 months leading up to June 2025, it achieved a return of 20.41%, showcasing strong long-term performance.
The management fee for the VEU ETF is 0.04%, which is relatively low, making it an attractive option for cost-conscious investors seeking international diversification.
As of May 2025, the VEU ETF's holdings include sectors such as Financials (24.4%), Industrials (15.3%), Technology (13.5%), Consumer Discretionary (12.1%), and Health Care (8.3%).
You can use InvestSMART's online ETF filter tool to compare the VEU ETF with other options based on investment category or star rating. Additionally, their free statement of advice quiz can help you select the right ETF portfolio for your goals and investment timeframe.
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