VPL: A Less-Stellar P/E, But Momentum Is High Heading Into August
VPL has outperformed US equities in 2025, returning 17% YTD, driven by strong Japanese buybacks and shareholder rewards. The ETF remains attractively valued at a 15x P/E, offering a 2.85% yield and diversified exposure to Asia-Pacific large caps. Technical analysis shows VPL near 2021 highs with rising support at $80 and a bullish long-term trend, though seasonal weakness is possible.
VPL: Underlying Japanese Conditions Will Be The Key Swing Factor For This ETF
The Vanguard FTSE Pacific Index Fund ETF Shares offers cost-efficient exposure to Asia-Pacific equities, but its heavy Japanese focus has hindered performance of late, with only 7% YTD returns. With 60% of this portfolio coming from Japan, it will be difficult for the VPL ETF to flourish, unless conditions in this region pick up. VPL's holdings offer decent earnings growth on par with global stocks, yet it can be picked up at a cheaper P/E multiple valuations look compelling.
