VEU: A Beneficiary Of European Defense Spending
Vanguard FTSE All-World ex-US Index Fund ETF Shares offers broad international large-cap exposure at a best-in-class 0.04% expense ratio, making it ideal for long-term, cost-conscious investors. The fund's 40% European allocation is a key tailwind, as rising EU defense spending should boost regional GDP and drive returns. Given high U.S. valuations, VEU is a Buy for those seeking growth at a reasonable price and diversification outside the U.S. with minimal fees.
Vanguard FTSE All-World ex-US Index Fund ETF Is Very Well Positioned
I recommend Vanguard FTSE All-World ex-US Index Fund ETF Shares as a 'Buy' for international diversification and protection against a weakening U.S. dollar. VEU's portfolio is well-diversified across regions and sectors, with top holdings in leading global companies like Taiwan Semiconductor and Tencent. Acknowledging that the Fund has significantly lagged U.S. market averages over the past decade, it offers a high-quality, low-cost way to gain exposure to foreign equities.
VEU: A New Golden Age For International Equities
Foreign investors are divesting from US equities, a trend accelerated by heightened financial volatility. Tariffs and trade conflicts could weigh more heavily on US markets than foreign ones, potentially reversing a decade of outperformance. US large-cap equities remain historically overvalued compared to international peers, with CAPE ratios indicating muted long-term returns.
This Vanguard Fund Invests in Non-U.S. Stocks and Is Up 8% This Year
If you're worried about the U.S. economy or simply want a way to diversify your portfolio, you may want to look at investing in companies based in other parts of the world. It can be a good way to balance out some of your risk, both in the short term and the long term.
VEU vs VWO: Which International Vanguard ETF Is a Better Fit for Your Portfolio?
It's getting harder to find value in the U.S. International diversification could be the key in getting better deals.
VEU: International Stocks Outperforming To Start 2025, More Upside Ahead
I maintain a buy rating on VEU due to its compelling valuation, positive momentum, and broad international exposure, especially in large-cap stocks. The recent performance of VEU suggests a potential shift away from US exceptionalism, with VEU outperforming VTI since late 2024. VEU's low expense ratio, high dividend yield, and favorable PEG ratio make it an attractive option for diversifying away from US equities.
VEU: A Cheap Mid-Teens P/E Outweighs Near-Term Technical Concerns
Foreign companies may achieve their highest EPS since 2009, with the ACWX Index forecasted for strong EPS growth over the next 12 months. VEU trades at a low forward P/E of 14.0x, offering broad international exposure and a forward dividend yield of 3.0%. Despite bearish seasonal trends, VEU's long-term technical trend is positive, with rising 200-day moving averages and strong diversification.
VEU: The Underperformance Intensifies
The US continues to outperform global markets, with the S&P 500 hitting all-time highs while VEU lags behind. VEU is a diversified fund with attractive valuation, low expense ratio, and good dividend yield. Despite the potential for a catch-up trade, it is hard to predict what the catalyst could be and VEU's diversification could work against it.
