NVO - VIGI: Weak Relative Returns Eyeing Better Second-Half Trends
2024-07-09 22:22:11 ET
Summary
- VIGI has underperformed due to market-wide preference for US mega-cap stocks, but valuation and diversification may lead to mean reversion favoring VIGI.
- 2Q is expected to mark the first growth quarter for "Other" 493, a potential catalyst for change in market sentiment towards VIGI.
- VIGI's technical picture looks better, with a rising long-term moving average and a potential breakout above $83.
The Vanguard International Dividend Appreciation Index Fund ETF (VIGI) has underperformed significantly so far this year. But that’s been the case for just about any stock not considered a Magnificent Seven name. While it’s hard to know when the tide may turn in favor of other niches, including foreign equities, at some point valuation will matter and diversification will pay dividends, so to speak. ...
VIGI: Weak Relative Returns, Eyeing Better Second-Half Trends