Story perspectives

Vanguard Launches Ex-China ETF Amid Emerging Market Shift

10/16/2025

Summary

Story summary

The Vanguard Emerging Markets Ex-China ETF (VEXC) launched recently to exclude Chinese stocks and focus on markets like Taiwan and India.
Ex-China ETFs have seen net outflows this year as inclusive ETFs have outperformed.
Analysts say VEXC could replace or complement Vanguard FTSE Emerging Markets ETF (VWO) for investors seeking less China exposure.
Some investors remain optimistic about China's recovery and its market valuations.

History

Historical Context

The term "emerging markets" emerged in the 1980s, replacing "less developed countries" to describe nations transitioning towards developed status. By 2023, the Vanguard FTSE Emerging Markets ETF (VWO) had over $50 billion in assets, reflecting investor interest in these markets. The recent launch of the Vanguard Emerging Markets Ex-China ETF (VEXC) indicates a strategic shift towards countries like Taiwan and India amid concerns over China's economic stability.

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Story summary

The Vanguard Emerging Markets Ex-China ETF (VEXC) launched recently to exclude Chinese stocks and focus on markets like Taiwan and India.
Ex-China ETFs have seen net outflows this year as inclusive ETFs have outperformed.
Analysts say VEXC could replace or complement Vanguard FTSE Emerging Markets ETF (VWO) for investors seeking less China exposure.
Some investors remain optimistic about China's recovery and its market valuations.

1 / 2