If you hold U.S. large caps, investment grade bonds, and maybe some real estate, you own the parts of the global economy that already get the most attention.
On this episode of the “ETF of the Week” podcast, VettaFi's Head of Research Todd Rosenbluth discussed the Vanguard FTSE Emerging Markets ETF (VWO) with Chuck Jaffe of Money Life. The pair discussed several topics related to the fund to give investors a deeper understanding of the ETF.
VettaFi's Head of Research Todd Rosenbluth discussed the Vanguard Emerging Markets Stock Index Fund (VWO) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and strategy, visit the Fixed Income Content Hub.
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The described company is intricately engaged in the financial sector, specializing in investment services tailored towards emerging markets. It has positioned itself as a conduit for investors seeking exposure to a diversified range of securities from these burgeoning regions. The company's strategic approach pivots on an indexing investment methodology, meticulously designed to mirror the performance metrics of the FTSE Emerging Markets All Cap China A Inclusion Index. This index is a comprehensive reflection of the stock performance across emerging market countries, with a significant focus on inclusivity of China A-shares. By adopting a sampling strategy in its investment operations, the company ensures that its portfolio broadly replicates the index in terms of key investment characteristics, thus aiming to provide an investment return that aligns with the dynamics of emerging markets.
This product is the centerpiece of the company's offerings, established to grant investors access to the growth potential of emerging markets. The fund is structured to track the performance of the FTSE Emerging Markets All Cap China A Inclusion Index, leveraging a sampling technique that selects a diversified collection of securities. This method ensures that the fund approximates the full index in terms of critical factors like sector allocation, geographical distribution, and company size, thereby aiming to match the index's investment return. Investors are thus provided with a passive investment vehicle that reflects the economic dynamism of emerging market countries.