VWO - Vanguard FTSE Developed Markets ETF: A Segmentation That Is Losing Relevance
The Vanguard FTSE Developed Markets ETF (VEA) with $122 billion in assets is one of the largest exchange traded funds offering a diversified exposure to companies incorporated in "developed" markets outside the United States. The idea here is that foreign countries recognized as developed are typically wealthier, with a more stable economic environment, and benefit from established institutional foundations. Developed economies also generally carry higher sovereign credit ratings implying less political and public sector risk within the investment profile. While this type of segmentation is an important aspect of investing, we argue that trends in