The Vanguard FTSE Developed Markets ETF (VEA) is one of the largest and most widely followed international equity funds, giving investors broad exposure to developed markets outside the United States. Its portfolio spans Europe, the Pacific, and Canada, with holdings in leading companies across technology, financials, healthcare, consumer staples, and industrials.
| Rank | Symbol | Company | % Weight |
|---|---|---|---|
| 1 | ASML | ASML Holding N.V. | 1.10% |
| 2 | SAP | SAP SE | 1.06% |
| 3 | AZN | AstraZeneca PLC | 0.90% |
| 4 | NESN | Nestlé S.A. | 0.90% |
| 5 | NOVN | Novartis AG | 0.89% |
| 6 | 005930 | Samsung Electronics Co., Ltd. | 0.88% |
| 7 | ROG | Roche Holding AG | 0.86% |
| 8 | — | Slbbh1142 | 0.86% |
| 9 | HSBA | HSBC Holdings plc | 0.85% |
| 10 | SHEL | Shell plc | 0.83% |
| 11 | RY | Royal Bank of Canada | 0.78% |
| 12 | 7203 | Toyota Motor Corporation | 0.78% |
| 13 | SIE | Siemens AG | 0.77% |
| 14 | CBA | Commonwealth Bank of Australia | 0.70% |
| 15 | NOVO.B | Novo Nordisk A/S | 0.68% |
| 16 | SHOP | Shopify Inc. | 0.64% |
| 17 | 8306 | Mitsubishi UFJ Financial Group, Inc. | 0.64% |
| 18 | 6758 | Sony Group Corporation | 0.62% |
| 19 | ALV | Allianz SE | 0.62% |
| 20 | ULVR | Unilever PLC | 0.59% |
| 21 | MC | LVMH Moët Hennessy Louis Vuitton SE | 0.57% |
| 22 | SAN | Banco Santander S.A. | 0.54% |
| 23 | BHP | BHP Group Limited | 0.52% |
| 24 | SU | Schneider Electric S.E. | 0.50% |
| 25 | TD | The Toronto-Dominion Bank | 0.50% |
Year-to-date, VEA has delivered a 23.8% price return with a 34.0% CAGR over the measured period. This performance reflects both the resilience of global equities and the benefits of diversification beyond the U.S. market. Despite mid-year volatility tied to currency fluctuations and macroeconomic concerns, VEA has maintained steady upward momentum.
The fund’s strength comes from its balance of multinational powerhouses and regional leaders. Its top holdings include ASML, SAP, AstraZeneca, Nestlé, and Novartis, companies that anchor Europe’s economic competitiveness while serving global demand. This mix positions VEA as a reliable core holding for investors seeking to broaden their exposure to developed economies.
1. ASML Holdings N.V. (ASML)
ASML is VEA’s largest holding, accounting for 1.10% of the fund. As the world’s sole supplier of extreme ultraviolet (EUV) lithography systems, ASML is indispensable to the production of advanced semiconductors. This near-monopoly positions it as a critical enabler of technological progress in artificial intelligence, cloud infrastructure, and advanced manufacturing.
The company’s order backlog remains robust, with global chipmakers racing to secure capacity for the next generation of processors. Despite export restrictions and rising geopolitical scrutiny, ASML’s technology remains unmatched, underscoring its global strategic importance. Its role is so central that supply bottlenecks at ASML can ripple through the entire semiconductor industry.
For investors, ASML represents both growth potential and resilience. By holding ASML, VEA captures a company that is not just a market leader but an essential foundation of global innovation. This makes ASML a powerful anchor for the ETF’s performance.
2. SAP SE (SAP)
SAP is the second-largest holding in VEA, accounting for 1.06% of the fund. The German software giant is the backbone of enterprise resource planning (ERP) systems and business operations worldwide. Its software powers critical processes in industries ranging from manufacturing and logistics to finance and human resources.
SAP’s transition to cloud-based services has accelerated growth while stabilizing revenue through subscription models. By embedding artificial intelligence into its solutions, SAP is positioning itself as more than a business systems provider; it is becoming a strategic partner in digital transformation. This shift is expected to drive both margin expansion and stickier customer relationships.
For VEA investors, SAP adds a high-quality technology holding that provides stable recurring revenues while benefiting from the secular growth of enterprise digitalization. Its scale, global reach, and entrenched role in corporate operations make SAP a durable long-term performer.
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3. AstraZeneca PLC (AZN)
AstraZeneca is the third-largest holding, accounting for 0.90% of the fund. The U.K.-based pharmaceutical giant has a diverse product pipeline spanning oncology, cardiovascular, respiratory, and immunology. Its research strength and consistent pipeline delivery make it one of the most reliable players in the healthcare sector.
The company has benefited from continued demand for oncology treatments and new therapies addressing chronic diseases. AstraZeneca’s global reach, particularly in emerging markets, adds a growth element not always seen in developed-market pharmaceutical firms.
For VEA, AstraZeneca provides defensive stability with long-term growth prospects. Its presence ensures the ETF captures healthcare innovation while also benefiting from the sector’s resilience during periods of economic uncertainty.
What VEA Really Owns
VEA’s composition highlights the diversity and strength of developed markets outside the U.S. Its top three holdings, ASML, SAP, and AstraZeneca, underscore a portfolio anchored in technology, software, and healthcare, sectors that are critical to the global economy. Each company provides unique exposure: ASML to semiconductors, SAP to enterprise software, and AstraZeneca to life sciences.
The ETF’s broader mix, which includes Nestlé, Novartis, Samsung Electronics, and the Royal Bank of Canada, rounds out the portfolio with exposure to consumer staples, pharmaceuticals, and financials. This sector balance positions VEA as a well-rounded international allocation that complements U.S.-centric portfolios.
Key Insights
- Global leaders at the core: ASML, SAP, and AstraZeneca anchor VEA with exposure to semiconductors, enterprise software, and healthcare innovation.
- Resilient returns: A 23.8% YTD gain underscores the ETF’s ability to deliver consistent growth in volatile markets.
- Diversification benefits: With holdings across Europe, Asia, and Canada, VEA reduces reliance on U.S. equities while capturing international opportunities.
- Balanced exposure: Sector coverage includes technology, financials, healthcare, and consumer staples, providing a blend of growth and stability.
Why You Should Invest In VEA
VEA has delivered a strong 23.8% YTD return in 2025, reinforcing its role as a cornerstone holding for investors seeking global diversification. Its performance reflects not only the resilience of developed markets but also the importance of holding companies that are global leaders in their industries.
With multinational exposure across Europe, Asia, and Canada, VEA offers access to companies that benefit from global trade, consumer growth, and technological innovation. Its depth of holdings reduces single-country risk while still capturing regional strengths.
For long-term investors, VEA offers a straightforward and cost-effective way to access the world’s leading developed companies. Its consistent performance, liquidity, and diversified structure make it an essential building block for portfolios seeking balance and international exposure.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
