VWO News and Press, Vanguard FTSE Emerging Markets From 02/28/23

Summary Vanguard's brand is synonymous with broadly diversified passive index funds with the lowest possible expense ratios. This article serves as an updated guide to which of Vanguard's 81 ETFs best meet those objectives of simplicity, total market diversification, and low cost. Y...

Summary We think value stocks can outperform as interest rates head higher. Regions and sectors help us find quality within value and growth at a reasonable price. Stocks slid after the Federal Reserve’s preferred inflation gauge showed persistently high inflation, reinforcing wh...

Summary Given the forecastable nature of the business cycle, understanding what markets are pricing in from a business cycle perspective is an integral tool to one’s asset allocation decisions. As it stands, stocks as a whole have done a solid job pricing in the growth slowdown. ...

Summary The most conspicuous shift is in cash and cash equivalents, such as 3-month Treasury bills, which currently yield 4.84% as of Feb. 22. The average yield for the major asset classes fell to 3.91%, based on trailing data through Feb. 22, according to data from Morningstar.com. ...

Summary Uncertainty abounds in many key global macroeconomic drivers. However, some of this uncertainty, global growth and geopolitics in particular, may provide a strong tailwind for EM debt. All key global macroeconomic drivers are maximally uncertain – rates, FX, duration, IG ...

Summary There is an opportunity to over-allocate towards emerging markets in 2023 due to softening USD, reopening China and firm commodities. Emerging markets do well when the USD is softening and cooling inflation may allow the Federal Reserve to pause earlier than expected. China ...

Summary The higher yield on the FTSE Emerging Markets index suggests the VWO should outperform the MSCI World by almost 2 percentage points annually assuming no valuation changes. The higher dividend yield reflects the significantly lower P/E ratio on EM stocks, which trade at a 40% dis...

Summary Markets are waking up to our expectation of more central bank rate hikes as inflation proves sticky. We go overweight U.S. short-term bonds for income. U.S. two-year Treasury yields jumped near 15-year highs - sparking an equity retreat - as Federal Reserve rate cuts later in th...

Summary Stocks have posted solid gains since they started to recover from last year’s painful crash. Policy trends that drive currency moves and macroeconomic growth differ around the world. Disciplined stock selection can help investors achieve effective global diversificati...

Summary In this post, I will focus on trend lines in profitability at companies in 2022, with the intent of addressing multiple questions. While absolute profits are a useful measure of profitability, you have to scale profits to a common scaling variable, to compare companies of differ...