Fund Evaluator:

Vanguard Emerg Mkts Sel Stk Inv Overview

Vanguard Emerg Mkts Sel Stk Inv (VMMSX) is an actively managed International Equity Diversified Emerging Mkts fund. Vanguard launched the fund in 2011.

The investment seeks to provide long-term capital appreciation. Under normal circumstances, the fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in common stocks of companies located in emerging markets. For purposes of the 80% policy, emerging markets means countries included in the fund’s performance benchmark, the FTSE Emerging Index; countries classified as emerging economies by the World Bank; and other countries or markets with similar emerging characteristics as determined by the advisors.

About Vanguard Emerg Mkts Sel Stk Inv (VMMSX)

There are 7 members of the management team with an average tenure of 9.80 years: Allison Fisch (2011), Caroline Cai (2011), Mike Gush (2018), Andrew Stobart (2018), Rakesh Bordia (2015), Mary Pryshlak (2018), Akhil Subramanian (2023). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: MSCI ACWI Ex USA NR USD index with a weighting of 100% and FTSE Emerging NR USD index with a weighting of 100%. Vanguard Emerg Mkts Sel Stk Inv has 296 securities in its portfolio. The top 10 holdings constitute 30.1% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Vanguard Emerg Mkts Sel Stk Inv is part of the Equity global asset class and is within the International Equity fund group. Vanguard Emerg Mkts Sel Stk Inv has 90.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 2.5%. There is 90.8% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Vanguard Emerg Mkts Sel Stk Inv has 6.7% of the portfolio in cash.

Assets Under Management

The fund has $1 billion in total assets, which is above the $992 million average for the Diversified Emerging Mkts category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

VMMSX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Vanguard Emerg Mkts Sel Stk Inv expense ratio is high compared to funds in the Diversified Emerging Mkts category. Vanguard Emerg Mkts Sel Stk Inv has an expense ratio of 0.82%, which is 29% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Vanguard Emerg Mkts Sel Stk Inv has a portfolio turnover rate of 33%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 68% for the Diversified Emerging Mkts category.

Recently, in the month of August 2026, Vanguard Emerg Mkts Sel Stk Inv returned 1.6%, which earned it a grade of F, as the Diversified Emerging Mkts category had an average return of 3.9%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Vanguard Emerg Mkts Sel Stk Inv has a trailing yield of 1.99%, which is above the 1.65% category average. The fund normally distributes its income annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Vanguard Emerg Mkts Sel Stk Inv Grades

Year to date, the fund has returned 16.4%, 7.3 percentage points worse than the category, which translates into a grade of F. The fund has returned 29.5% over the past year (grade of D), 20.0% over the past three years (grade of D) and 7.3% per year over the past five years (grade of C) and 9.2% per year over the past 10 years (grade of C).

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