Vanguard Caps Asia Pacific ETF Benchmark as Korean Tech Weights Rise

Vanguard will switch its FTSE Developed Asia Pacific ex Japan UCITS ETF (VAPX) to the FTSE Developed Asia Pacific ex-Japan Daily Capped Index on October 15, reducing the risk of individual holdings breaching UCITS concentration limits. Nearly half the ETF’s assets are invested in South Korea, where AI-driven gains and subsequent volatility have increased scrutiny of technology stock concentration. Samsung Electronics represented 17.83% of assets at the end of August, while SK Hynix accounted for 12.25%. Neither holding had breached the applicable limits. The daily capped benchmark will replace the current uncapped index while maintaining substantially the same market exposure. Vanguard said the change supports continued UCITS compliance and will not materially alter the ETF’s investment policy, strategy or risk profile.