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Vanguard FTSE Developed All Cap ex North America Index ETF (VIU $42.54)
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Vanguard FTSE Developed All Cap ex North America Index ETF (CAD-Hedged) (VI $46.70)
Q: Is VIU actively managed? What or who determines weightings in each international country ? Or is it just by stock screening that certain countries get a higher percentage weighting? Finally, if VI is the hedged version, what is it hedged against ? The Vanguard website says USD but this ETF is ex North America.
5i Research Answer:
VIU is not active. seeks to track the FTSE Developed All Cap ex North America Index. FTSE Russell manages the index and the ETF simply follows any changes to the index.
VI hedges the Canadian dollar, with Vanguard explaining this as follows: VI uses derivative instruments to seek to hedge the foreign currency exposure of the securities included in the FTSE Developed All Cap ex North America Index to the Canadian dollar.