- The Vanguard FTSE Emerging Markets ETF offers exposure to a broad basket of emerging market stocks with a low expense ratio.
- It is trading at increasingly attractive valuations, particularly relative to its developed market peers, with an underlying forward PE ratio of 11.9x and forward dividend yield of 3.3%.
- Despite the recent decline in valuations, the rise in U.S. bond yields has raised the opportunity cost of stocks globally, and I am not adding to my positions.
- Furthermore, Beijing's widening lockdowns risk undermining support for Xi Jinping, which could lead to reduced economic freedom, which could be bad news for minority shareholders.
For further details see:
VWO: Rising U.S. Yields And China Risks Warn Against Adding Exposure