We report on the novel fabrication of vertical-cavity surface-emitting lasers (VCSEL's) using vacuum processing techniques. The upper monolithic distributed Bragg reflector around the laser cavity is dry etched down to the top of the active region, followed by in situ contact deposition on the mesa sidewall, providing a short current path through the p-type mirror. These etched VCSEL's exhibit lower series resistance, lower threshold voltage, greater thermal dissipation, and higher maximum output power than conventional planar VCSEL's made from the same material.