- The EWY appears to be digesting the strong gains seen over the past year or so, and with valuations near record highs, I am awaiting a deeper correction.
- The fund’s 0.59% expense ratio and low dividend yield mean that capital gains are needed to generate strong returns, and after such a strong rally, valuations are stretched.
- However, ongoing corporate governance reforms, a valuation discount relative to the emerging market benchmark, and a solid economic backdrop, suggest that the EWY should outperform over a multi-year period.
For further details see:
EWY: A Long-Term Outperformer