VEU Stock Recent News

U.S. markets have dominated for over a decade, but international stocks may gain momentum. The Vanguard FTSE All-World ex-US Index Fund ETF Shares is a good way to allocate overseas and remove U.S. exposure. The VEU ETF offers broad exposure to international equities, has a low expense ratio, and provides a higher dividend yield.

The US stock market now comprises a record 64% of the global equity allocation. Vanguard FTSE All-World ex-US Index Fund ETF Shares offers attractive valuation and diversification along with a dividend yield more than two times that of the S&P 500. Technically, VEU faces resistance at $57 and is rangebound, but a breakout could lead to a sharp gain.

US equity markets are showing mixed signals for the coming 12 months, suggesting potential for allocating to ex-US instruments. The Vanguard FTSE All-World ex-US Index Fund ETF Shares is a possible option on the tactical side for short-term investors. The fund has a tight tracking error to its benchmarks, but mid- to long-term performance relative to its U.S. counterparts is still uncertain.

The stock market has seen strong returns year-to-date, led by US equities. The Vanguard FTSE All-World ex-US Index Fund ETF Shares provides global equities exposure excluding the US names. VEU has underperformed its peers and has a bad track record over recent years.

Vanguard FTSE All-World ex-US ETF invests in large-cap stocks globally. The fund has a weaker growth prospect than the S&P 500 Index.

In 2023, most of the market's interesting opportunities are in dividend-paying sectors. Tightening has a negative effect on the value of high growth opportunities.

Almost 60 percent of VEU's AUM is invested in four sectors - ICT, financial, industrial, and healthcare. The fund generates decent yield and total returns. The strong US dollar, high sustained interest rate by the Fed, and slowing global economic growth are expected to weaken growth in equities in the short run.

The Vanguard Total International Stock ETF invests based on the FTSE Global All Cap ex US Index and holds about 7,900 stocks. The Vanguard FTSE All-World ex-US ETF invests based on the FTSE All-World ex US Index and holds about 3700 stocks.

VEU invests in a diverse portfolio of foreign equities. Given the recent pullback, many investors are questioning if VEU is a good buy at these prices. Personally, I believe that foreign markets are facing an unfavorable economic backdrop, making the risk-reward tradeoff unappealing to potential buyers.

Vanguard's popular ex-U.S. equity ETF, VEU, has pulled back nearly 30% off its mid-2021 peak. A surging dollar and a return to growth vs value have led to some weak recent relative returns.