Home/Asia Pacific/VAE

VAE

$95.00+0%Asia Pacific35/100
Fund Page ↗

Vanguard FTSE Asia ex Japan Shares Index ETF · Vanguard

Data as at 29 March 2026

TL;DR

Tracks large and mid-cap companies across Asia excluding Japan — covering China, South Korea, Taiwan, India, Hong Kong, and several Southeast Asian markets in a single fund. Managed by Vanguard.

MER (Annual Fee)
0.40%
#2 lowest in Asia Pacific
1Y Return
+19.2%
3Y Return (p.a.)
+15.2%
Dividend Yield
1.71%
Trailing 12 months
AUM
$797M
Assets under management
Avg Daily Turnover
$558K
Avg shares × unit price
Unit Price
$95.00
As at 29 March 2026
Provider
Vanguard
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Strategy

Follows the FTSE Asia ex-Japan Index using physical replication. The FTSE methodology classifies South Korea as a developed market, so VAE includes Samsung and SK Hynix in its portfolio.

Top Holdings

TSMC
9.1%
Samsung
5.4%
Tencent
4.2%
Alibaba
2.8%
HDFC Bank
1.9%
Reliance Industries
1.7%
Infosys
1.3%
SK Hynix
1.2%
ICICI Bank
1.1%
Meituan
1.0%
Key Fact

VAE includes South Korea — home to Samsung and SK Hynix — because FTSE classifies South Korea as a developed market. Some other Asian funds use MSCI classification, which treats Korea differently and excludes it from emerging market indexes.

Suited for

Investors wanting a single-fund solution for broad Asian equity exposure excluding Japan. VAE provides geographic diversification across the most populous and fastest-growing economies in the world.

Risks

China makes up around 30-35% of the fund. Chinese regulatory actions on technology companies and the Taiwan geopolitical situation are the primary tail risks for this fund.

ETFCheck Score35/100
Fees (40%)40
Fund Size (25%)44
Liquidity (20%)12
Yield (15%)40
How scores are calculated →
Other Asia Pacific ETFs
IJP
0.09% MER
70
IAA
0.50% MER
38
ASIA
0.67% MER
22
CNEW
0.57% MER
20
IKO
0.65% MER
9View all Asia Pacific ETFs →

Frequently Asked Questions - VAE

Does VAE include both developed and emerging Asian markets, and why does that matter?+
Unlike many Asia-focused ETFs that separate developed and emerging markets, VAE tracks the FTSE Asia ex-Japan Index covering both - including South Korea, Taiwan, Hong Kong, Singapore, India, and ASEAN nations. This blended approach gives Australian investors single-ticket access to Asia's full growth spectrum without needing separate emerging market allocations. With a 2.05% yield and 0.40% MER, it's an efficient way to capture the region's demographic and economic tailwinds.
How does VAE differ from IAA for Australian investors wanting Asian exposure?+
VAE holds hundreds of stocks across developed and emerging Asia, providing significantly broader diversification than IAA's concentrated 50-stock portfolio. VAE's wider net means greater exposure to mid-caps and smaller Asian economies like Thailand and Indonesia. While IAA returned 10.4% versus VAE's 9.8% over one year, VAE's diversification reduces single-stock concentration risk - IAA has dominant positions in Samsung, TSMC, and Alibaba that can drive outsized volatility.
What currency risk do Australian SMSF investors face when holding VAE?+
VAE is unhedged, meaning Australian investors bear full currency exposure to a basket of Asian currencies including the Chinese yuan, Korean won, Taiwanese dollar, and Indian rupee. When the Australian dollar weakens against these currencies, returns are boosted, and vice versa. Vanguard does not offer a hedged version of VAE on the ASX, so SMSF trustees concerned about currency volatility should consider how this unhedged position interacts with their overall portfolio's currency exposure.
Why is VAE's yield of 2.05% higher than most global ETFs and is the income reliable?+
Asian companies, particularly in markets like Taiwan, Singapore, and Hong Kong, often maintain higher dividend payout ratios than their US counterparts, which explains VAE's 2.05% yield exceeding global peers like VGS or QLTY. However, distributions fluctuate with Asian corporate earnings cycles and currency movements. For Australian income-focused investors, the yield provides a modest income stream, though distributions carry no franking credits and are taxed as foreign income by the ATO.