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Emerging markets represent a compelling investment opportunity because they invest in rapidly developing economies poised for substantial growth. These markets offer a unique blend of high-growth potential and increased risks.
The Vanguard FTSE Emerging Markets ETF invests in stocks of companies in emerging markets like China, Brazil, Taiwan, and South Africa. I see Chinese equity exposure as too risky at this juncture given trade implications from an aggressive tariff policy under a Trump administration. While I see merit to being a bull on the Indian economy, the valuation of that country's equities is too rich for my taste.
On this episode of the “ETF of the Week” podcast, VettaFi's Head of Research Todd Rosenbluth discussed the Vanguard S&P 500 ETF (VOO) with Chuck Jaffe of Money Life. The pair discussed several topics related to the fund to give investors a deeper understanding of the ETF overall.
The election victory has fueled a strong rally in US equities, but Trump's comeback is seen as a new risk factor elsewhere as Washington prepares to pivot to new edition of an “America First” policy. The latest surge in US shares has widened the lead for SPDR S&P 500 ETF (SPY) year to date.
I am upgrading my rating on VWO from hold to buy due to improved fundamentals and technicals, despite questions about China's stimulus impact. VWO has shown strong performance, returning 20.7% since late last year, with a robust B+ ETF Grade and a high dividend yield of 2.55%. The ETF is well-diversified across sectors and has a favorable valuation with a price-to-earnings ratio under 14 and a PEG ratio barely above 1.
Emerging market ETFs are coming off their best weekly showing in about a year. Both broad-based and country-specific ETFs tied to developing nations enjoyed their best stretch of inflows since December 2023 — to the tune of $6 billion.
Exclude China and broadly defined EM stocks are posting substantially softer results, based on a set of ETFs through Friday's close. US shares are effectively neck and next with EM so far in 2024.
With the Federal Open Market Committee (FOMC) cutting interest rates by a larger-than-expected 50 basis points in its September meeting, businesses throughout the country will be able to take out loans more cheaply. One intended goal of a rate cut like this is to foster increased profitability through business expansion.
There are some excellent opportunities for investors in international stocks. The iShares International Select Dividend ETF offers a portfolio of top-notch dividend stocks in developing countries.