ASML - Looking Abroad: VEA's 13.5x P/E Remains Too Cheap To Bypass
2024-03-20 11:57:48 ET
Summary
- Vanguard FTSE Developed Markets ETF has underperformed the S&P 500 but has shown modest alpha since mid-February.
- VEA has a compelling valuation and some foreign-developed stock markets are reaching all-time highs.
- VEA's low PEG ratio, high dividend yield, diversified allocation across sectors, and improved chart are positive factors.
- I highlight key price levels to monitor on the chart.
Foreign-developed markets have failed to keep pace with the robust rally in the S&P 500. The Vanguard FTSE Developed Markets Index Fund ETF Shares ( VEA ) is up 20.6% in total return over the past year, but that is about a 10-percentage point underperformance compared to the S&P with dividends included. Still, VEA has produced modest alpha against the S&P 500 Trust ETF ( SPY ) since mid-February as ex-US markets have staged a rally over the back half of the first quarter....
Looking Abroad: VEA's 13.5x P/E Remains Too Cheap To Bypass