Vanguard Emerging Markets Stock Index Fund Institutional Shares (VEMIX)

Vanguard Emerging Markets Stock Index Fund Institutional Shares is a mutual fund designed to give institutional investors broad, low-cost exposure to equities in emerging market countries. Its primary goal is to track the performance of the FTSE Emerging Markets All Cap China A Inclusion Index, encompassing large-, mid-, and small-cap stocks across more than 20 emerging economies. This diversified portfolio currently holds nearly 5,000 individual securities, reflecting a wide array of sectors such as financial services, technology, consumer cyclical, and communication services. Notably, Chinese companies comprise a significant portion of the fund, accounting for over a quarter of its assets. The fund employs a market-cap-weighted approach and minimizes costs for investors with a notably low expense ratio, one of the lowest in its category. By avoiding frequent trading and excessive turnover, it provides a faithful representation of emerging markets while helping to keep expenses down. The fund serves as a core international holding for institutions seeking to participate in the potential growth of emerging markets, while also accepting the heightened volatility and geopolitical risks inherent in these regions.