Vanguard FTSE Emerging Markets ETF Individual Investment Option

The Fund employs an indexing investment approach designed to track the performance of the FTSE Emerging Markets All Cap China A Transition Index, an interim index that will gradually increase exposure to small-capitalization stocks and China A-shares while proportionately reducing exposure to other stocks based on their weightings in the FTSE Emerging Markets All Cap China A Inclusion Index. The FTSE Emerging Markets All Cap China A Inclusion Index is a market-capitalization-weighted index that is made up of approximately 3,500 common stocks of large-, mid-, and small-cap companies located in emerging markets around the world. The Fund invests by sampling the index, meaning that it holds a broadly diversified collection of securities that, in the aggregate, approximates the interim index in terms of key characteristics.

Risk: An investment in the Fund could lose money over short or even long periods. You should expect the Fund's share price and total return to fluctuate within a wide range. The Fund is subject to the following risks, which could affect the Fund's performance.

Country/Regional risk: The chance that world events - such as political upheaval, financial troubles, or natural disasters - will adversely affect the value of securities issued by companies in foreign countries or regions. The Index's, and therefore the Fund's, heavy exposure to China, Taiwan, Brazil, India, and South Africa subjects the fund to a higher degree of country risk than that of more geographically diversified international funds.

Emerging markets risk: The chance that the stocks of companies located in emerging markets will be substantially more volatile, and substantially less liquid, than the stocks of companies located in more developed foreign markets because, among other factors, emerging markets can have greater custodial and operational risks; less developed legal, regulatory, and accounting systems; and greater political, social, and economic instability than developed markets.

Currency risk: The chance that the value of a foreign investment, measured in U.S. dollars, will decrease because of unfavorable changes in currency exchange rates. Currency risk is especially high in emerging markets.
 

China A-shares risk: The chance that the Fund may not be able to access a sufficient amount of China A-shares to track its target index. China A-shares are only available to foreign investors through a quota license or the China Stock Connect program.

This Fund is also subject to stock market risk and index sampling risk. Because ETF Shares are traded on an exchange, they may be subject to additional risks.

Prices and Performance: Click here to review.

Expense Ratio: The estimated overall expense ratio for this Portfolio is:

CLASS A
Underlying Estimated Fund Expenses:1 0.14%
Program Management Fee: 0.25%
State Administrative Fee: 0.02%
Marketing and Distribution Fee: 0.25%
TOTAL: 0.66%
 
CLASS C
Underlying Estimated Fund Expenses:1 0.14%
Program Management Fee: 0.25%
State Administrative Fee: 0.02%
Marketing and Distribution Fee: 1.00%
TOTAL: 1.41%

 

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1 As of May 31, 2018.

Historical prices: Search for historical price information