VGK Stock Recent News

The Trump administration has unnerved investors with its departure from traditional trade policy. The average tax on U.S. imports fell to 2.5% under the previous administration, but the tariffs Trump has imposed or plans to impose would raise that figure to 8.4%, according to the nonpartisan Tax Foundation.

Don't discount the power of momentum. Some studies have found that momentum trading -- buying stocks or exchange-traded funds (ETFs) that are going up -- often works over the short to medium term.

Last year, the Vanguard S&P 500 Growth ETF ranked as the biggest winner among Vanguard's exchange-traded funds (ETFs). That's not surprising.

Investor sentiment reached a 15-year high. These are the crowded trades.

Frontier CEO Barry Biffle joins CNBC's 'Money Movers' to discuss the state of airlines.

Despite VGK's favorable valuation and decent performance, ongoing European economic and energy crises make it a sell until conditions improve. Europe's worsening natural gas shortage and geopolitical tensions, including US demands and trade issues, pose significant risks to the ETF's outlook. VGK's multinational companies offer some insulation from Europe's economic struggles but face challenges from deglobalization and higher production costs.

As the threat of new tariffs on Europe draws closer, the price of Vanguard FTSE Europe ETF has shown unusual growth. The VGK ETF's recent price increase is driven by strong Q4 earnings expectations for European financial stocks, not by reduced fears of Trump tariffs. Europe faces a complex economic landscape with challenges from China, Russia, and U.S. trade policies, impacting Euro GDP and VGK prospects.

Look at ETFs with exposure to the Eurozone, as political turmoil, Trump's economic policies and a weak Chinese economy paint a bleak outlook for the region.

I maintain a buy rating on the Vanguard FTSE Europe ETF (VGK) due to its modest valuation, rising earnings estimates, and solid chart performance. Despite macroeconomic concerns, global EPS forecasts, including those for EAFE and Europe, are on the rise, lowering the P/E ratio for ex-US equities. VGK's diversified portfolio, high yield, and favorable sector allocation make it appealing for both near-term traders and long-term value investors.

Europe has underperformed US markets since 2008, second only to Emerging Markets. Vanguard FTSE Europe ETF offers low-cost exposure to European equities, tracking the FTSE Developed Europe All Cap Index. VGK is diverse by country and holdings, with sector composition dominated by Industrials, Financials, and Health Care. No clear advantage over iShares Core MSCI Europe ETF (IEUR).