RODM - VEA: Favorably Valued With Lower Risk Than Emerging Markets
2024-06-16 10:47:13 ET
Summary
- VEA is a buy due to solid outlook for developed markets including Japan, its low expense ratio, high diversification, and substantial dividend yield.
- VEA excludes emerging markets and therefore reduces risks associated with Chinese holdings including tariffs and investment bans.
- VEA offers investors with diversification away from U.S. markets which currently have multiple indicators of being overvalued.
Investment Thesis
Vanguard FTSE Developed Markets ETF (VEA) is a buy due to the solid outlook for developed markets and its current valuation compared to the U.S. market. Additionally, by only including developed markets, VEA avoids some risks specific to emerging markets. Compared to peer funds, VEA has a very low expense ratio, offers a high amount of diversification, and includes a substantial dividend yield in addition to its potential for capital appreciation....
VEA: Favorably Valued With Lower Risk Than Emerging Markets