We show that a buried oxide layer forming a current aperture in an all epitaxial vertical‐cavity surface emitting laser has a profound influence on the optical and electrical characteristics of the device. The lateral index variation formed around the oxide current aperture leads to a shift in the cavity resonance wavelength. The resonance wavelength under the oxide layer can thus be manipulated, independent of the as‐grown cavity resonance, by adjusting the oxide layer thickness and its placement relative to the active region. In addition, the electrical confinement afforded by the oxide layer enables record low threshold current densities and threshold voltages in these lasers. ©1995 American Institute of Physics.