VWO Stock Recent News

The founder of Bridgewater Associates, Ray Dalio (Trades, Portfolio), has always been a subject of intrigue among investors. With its principles-based approach and sophisticated algorithms, the recent trades and portfolio adjustments of the guru's firm offer valuable insights into its investment strategy.

High dividend yield ETFs gained popularity when interest rates were near zero because investors found it hard to generate sufficient income from their investments. That was especially true regarding guaranteed investments such as U.S. Treasuries.

Emerging Markets have a low-teens P/E ratio, but the long-run multiple is also low. VWO holds more than a one-third weighting in China.

There is an opportunity to over-allocate towards emerging markets in 2023 due to softening USD, reopening China and firm commodities. Emerging markets do well when the USD is softening and cooling inflation may allow the Federal Reserve to pause earlier than expected.

The higher yield on the FTSE Emerging Markets index suggests the VWO should outperform the MSCI World by almost 2 percentage points annually assuming no valuation changes. The higher dividend yield reflects the significantly lower P/E ratio on EM stocks, which trade at a 40% discount to the MSCI World on an unadjusted basis.

Build your portfolio strategy with emerging market exposure. VWO is a well-diversified, low-cost, well-managed, appropriately-valued ETF for emerging markets.

No matter what the market conditions are, the hottest ETFs to buy will almost always make sense for investors. Fundamentally, these exchange-traded funds cover a basket of securities, thereby mitigating risk while enjoying broad upside opportunities.

After a 16% rally since the bottom on October 25, the Vanguard FTSE Emerging Markets ETF (VWO) appears poised for further upside, with the China rally leading the way. While valuations have increased over recent months, the VWO remains undervalued from a historical perspective. Despite an expected collapse in earnings, the forward P/E ratio remains at 12.0x.

After years of valuation comparison, emerging markets have become very attractive at this point, both in absolute terms and relative terms. This article examines two popular emerging market funds to help investors make an informed decision in this space.

Heavy energy, low technology concentrations may have boosted international ETFs.