IDEV - IDEV: Fair Valuation No Catalyst In The Near-Term
2024-05-01 06:30:47 ET
Summary
- iShares Core MSCI International Developed Markets ETF has underperformed the S&P 500 due to its low exposure to the information technology sector.
- IDEV has not fully recovered from its low in October 2022, while the S&P 500 has surpassed its previous peak.
- IDEV's low exposure to the technology sector and its inferior returns make it less attractive compared to the S&P 500.
ETF Overview
iShares Core MSCI International Developed Markets ETF ( IDEV ) owns about 2,300 stocks from 14 different developed markets outside of the United States. The fund has significantly underperformed the S&P 500 index since its inception due to its low exposure to the information technology sector. Its valuation appears to be fair. However, the Federal Reserve is likely to keep its rate policy unchanged and hence no near-term catalyst is expected. Hence, we see no reason why investors need to own this fund right now....
IDEV: Fair Valuation, No Catalyst In The Near-Term