VWO Soared 31.3% While SPY Managed Just 13.9%
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.
VIDEO: ETF of the Week: VWO
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.
ETF of the Week: Vanguard Emerging Markets Stock Index Fund (VWO)
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.
A Weakening Dollar Is Sending This Group of Stocks Sharply Higher. Should You Invest?
The dollar continues to weaken due to U.S. policy choices. Global investors are seeking higher returns in emerging markets.
VWO: The Regime Change Emerging Markets Can't Ignore
VWO is a passive ETF, in my opinion an intelligent proxy of the emerging market (China included). Even today it has attractive valuations compared to developed markets, with a P/E of 16x thanks to an estimated EPS growth rate of about 16.5%. But valuations might not be enough, VWO could find itself trapped by post–Trump intervention macro dynamics in Venezuela and beyond.
VWO: Emerging Markets Offer Several Benefits
Relying solely on past performance for Emerging Markets can be misleading when making portfolio decisions. Comparing Emerging Markets to US Total Market indices highlights significant performance and risk differences. Factor analysis tools reveal that Emerging Markets offer several benefits like equity-bond like correlation factors and periods of upside.
3 Charts On VWO That Help Me Invest In Emerging Markets
VWO ETF, with its low expense ratio and high dividend yield, serves as a benchmark for analyzing emerging markets. Emerging markets' performance is complex, influenced by factors like the DXY index, Trump's tariffs, and Powell's monetary decisions. The Dollar Index continues its strong upward trend, driven by Trump's fiscal policy and the Fed's monetary strategy.
VWO: Emerging Markets Are Good And So Is This Fund
Including emerging markets in your portfolio is sensible due to their lower correlation with the US stock market, enhancing risk-adjusted returns. VWO is a solid choice for EM exposure, offering low expense ratios, high liquidity, and broad diversification across sectors and countries. Despite historically lower returns, EM's unique correlation patterns can improve portfolio performance, especially during market downturns and specific periods of outperformance.
VWO: Emerging Markets Face A Slew Of Risks In 2025
The Vanguard FTSE Emerging Markets ETF invests in stocks of companies in emerging markets like China, Brazil, Taiwan, and South Africa. I see Chinese equity exposure as too risky at this juncture given trade implications from an aggressive tariff policy under a Trump administration. While I see merit to being a bull on the Indian economy, the valuation of that country's equities is too rich for my taste.
VWO: Buy The Post-China-Stimulus Dip
I am upgrading my rating on VWO from hold to buy due to improved fundamentals and technicals, despite questions about China's stimulus impact. VWO has shown strong performance, returning 20.7% since late last year, with a robust B+ ETF Grade and a high dividend yield of 2.55%. The ETF is well-diversified across sectors and has a favorable valuation with a price-to-earnings ratio under 14 and a PEG ratio barely above 1.
VWO: Potentially Better Macros, And Decent Risk-Reward On Offer
VWO, the largest and one of the more cost-efficient EM ETFs, but lagged global markets over the past year, by generating returns of only mid-single-digits. VWO's dominant regions - China and India, which account for 51% of the portfolio, are likely to benefit from better consumption trends, even as the dollar drops to 7 month lows. EM stocks look oversold relative to their global counterparts and can be picked up at cheap valuations.
VWO: Simple Emerging Market Equities ETF, But Better Choices Out There
International and emerging market equities currently trade with extremely cheap valuations and somewhat above-average yields. VWO is the largest emerging market equities ETF in the market. Although there is nothing significantly wrong with the fund, it compares unfavorably to EYLD in several key metrics.
