VT - VGK ETF: Not The Best Time To Enter

2024-04-09 14:48:26 ET

Summary

• Vanguard Europe ETF offers cost-efficient exposure to a diversified but stable pool of 1300 European securities.
• The growth prospects of Europe look unappealing, and prospective rate cuts are expected to reflect poorly on NII growth for European banks with a flattish outlook for FY24.
• VGK's valuation is compelling, but investors should consider the region's sub-par earnings growth.
• The risk-reward on the standalone chart looks unappealing.

ETF Profile

Investors looking for cost-efficient exposure to a diversified pool of European securities may consider looking at the Vanguard FTSE Europe ETF ( VGK ). VGK is something of a tried-and-tested product, having been around for close to two decades now, and during this time, it has also managed to accumulate the most AUM amongst all its peers, at nearly $20bn....

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