VEA: Solution To A Falling Dollar, Record Alpha And Compelling Valuation
The US dollar's decline has boosted international stocks, with Vanguard FTSE Developed Markets ETF outperforming the S&P 500 by 23 percentage points in 77 trading days. VEA's valuation is attractive, with a low earnings multiple of 13.5x and a high yield over 3%, compared to the S&P 500. The ETF's diversified portfolio, leaning towards value stocks, has shown resilience, amid market volatility, supported by strong financial and tech sector performance.
The Top 3 Vanguard ETFs of 2025 (so Far) Share This 1 Striking Common Denominator
Baskin-Robbins has nothing on Vanguard. The ice cream chain is famous for offering 31 flavors to ice cream lovers.
This Vanguard ETF Is Crushing the Market in 2025. Should You Buy?
President Donald Trump has been in office for only two months, but already his saber-rattling over tariffs has roiled markets.
VEA vs VWO: Which International Vanguard ETF Is Worth Owning?
After President Donald Trump's November 2024 election victory, the Financial Times had reported $140 billion new investment into US equity funds in just the first month.
2 Vanguard ETFs Retirees Can Buy for International Diversification
Retirees looking to diversify into international stocks can find a low-cost solution aboard the ship of Vanguard.
VEA: Pair Developed Markets With Emerging Markets For Enhanced Risk Adjusted Returns
Combining EM, DM, and US improves portfolio risk-adjusted returns due to their uncorrelation. EM offers higher returns but more risk, while DM adds stability; blending them enhances outcomes. Vanguard FTSE Developed Markets Index Fund ETF Shares is a top DM choice for its broad diversification, low cost, and high liquidity.
VEA: Do Not Confuse Cheap Price With Good Bargain
Developed ex-US stocks, despite being cheaper, are not good bargains compared to US equities based on dividends and book values. US equities have higher required returns when their superior dividend growth and profitability are considered, making them more attractive despite higher valuations. The valuation advantage of ex-US stocks is diminished once differences between sector compositions are considered.
VEA ETF: America's Allies Are Faltering
The Vanguard FTSE Developed Markets Index Fund ETF Shares offers broad exposure to foreign developed markets, including the EU, UK, Japan, and S. Korea. Europe's natural gas storage levels are plummeting, potentially leading to a repeat of the 2022 natural gas price spike. Major LNG consumers like Europe, Japan, and S. Korea are bidding up prices, leading to sharply higher energy costs.
VEA: A Bad Pick For Trump's Second Term
VEA ETF underperforms due to heavy exposure to stagnant European and Pacific economies. Rising global trade tensions further limit VEA's growth potential. I give a "Sell" rating for the VEA ETF.
VEA: Expecting A Pause In The Uptrend, But Developed Markets Remain Cheap
I maintain a buy rating on VEA due to its attractive valuation, strong diversification, and higher dividend yield compared to US equities. VEA's underperformance relative to the S&P 500 is due to its lower exposure to tech and higher exposure to cyclical sectors. The US Dollar Index's stability in 2024 has been a tailwind, but VEA's diversified holdings have limited its alpha generation.
VEA: Favorably Valued With Lower Risk Than Emerging Markets
VEA is a buy due to solid outlook for developed markets including Japan, its low expense ratio, high diversification, and substantial dividend yield. VEA excludes emerging markets and therefore reduces risks associated with Chinese holdings including tariffs and investment bans. VEA offers investors with diversification away from U.S. markets which currently have multiple indicators of being overvalued.
