Why do you recommend buying VEA in a tax-sheltered account?

VEA is the only Vanguard ETF that tracks the MSCI EAFE Index, and it is best way for a Vanguard client to gain broadly diversified foreign developed exposure at a very low cost. The fact that it is tax managed provides an additional benefit when it is held in a taxable account, but is not a detriment when it is held in a tax sheltered account such as an IRA.