Latest news with #IEV
CNBC
29-05-2025
- Business
- CNBC
These big international ETFs are outperforming the S&P 500. How to add this exposure to your portfolio
As markets grapple with President Donald Trump's evolving tariff policy, returns outside of the U.S. are looking especially attractive. Several region-specific exchange-traded funds are seeing a strong 2025, far outperforming the S & P 500 which is only marginally positive this year. Consider that the iShares China Large-Cap ETF (FXI) and the iShares Europe ETF (IEV) are scoring 2025 returns of 15.8% and 20.8%, respectively. The iShares MSCI Mexico ETF (EWW) and its Canadian counterpart (EWC) are also toting double-digit returns this year. This disparity in performance has unfolded as Trump's trade policy sows uncertainty for investors, companies and the economy, and is driving down the value of the dollar. In the latest development, the U.S. Court of International Trade ruled Wednesday that the president overstepped his authority in issuing his "reciprocal" tariffs in April. .SPX FXI YTD mountain The S & P 500 versus the iShares China Large-Cap ETF in 2025 While the S & P 500 rose in relief on Thursday, gains were held in check as traders feared policy negotiations could now drag out even longer. But there's at least one valuable lesson for investors amid all the confusion: It doesn't hurt to add some international exposure to your portfolio. "U.S. companies have been the cream of the crop over the past decade or so, but conditions change," said Callie Cox, chief market strategist at Ritholtz Wealth Management in Charlotte, N.C. "It's a good challenge of the assumptions investors hold: The U.S.'s leadership isn't always guaranteed, even though on paper it looks like we should be leading against other major regions," she added. That said, investors should proceed carefully as they ramp up global exposure. Accidental concentrations U.S. investors already have an inherent home bias, Cox said – and that's only been exacerbated by the runaway appreciation seen in the likes of tech juggernauts like Nvidia in 2023 and 2024. The downside, however, is that just as those Big Tech positions become too large as shares surge, investors' concentration in U.S. exposure can also become outsized. Financial advisors then must handle the uncomfortable task of getting those investors to diversify away from some of those positions. "We've always felt clients need to have a globally diversified portfolio," said Rafia Hasan, CFP and chief investment officer of Perigon Wealth Management in Chicago. "It's been a tough conversation to have over the past 15 years where, even over the long term, the U.S. was outperforming international markets." The tariff-driven shakeup in the U.S. market was enough to get investors asking about adding international exposure, though, she added. "This economic narrative around the U.S. and the economy – the sentiment had gotten pretty negative," Hasan said. "Now some of that has somewhat dissipated, we will continue to hold that international exposure." Diversification perks While Big Tech has driven returns in the U.S., other industries tend to dominate in international markets. "The biggest sector in developed markets is banks," said Cox. "A dominant tech sector isn't a thing in Europe for many reasons. Sometimes those more value-based sectors in the European Union can step in and help." International exposure can also offer currency diversification benefits. "In theory what should happen is if you have higher inflation in the U.S., the dollar weakens a bit, and having international investments could help offset that," said Roger Aliaga-Diaz, Vanguard's global head of portfolio construction and chief economist for the Americas. How much exposure you'll need to make a difference in your portfolio will depend on your individual circumstances. "If you take some of our portfolios, even in target-date funds, we typically have 60/40 U.S. and non-U.S. exposure," Aliaga-Diaz said, noting that this split applies to the equity sleeve. Investors who have more than 50% of their allocation toward international names run the risk of giving up the diversification of the U.S. market, he noted. But go beyond 70% exposure in U.S. names, and you run the risk of chasing performance, he added. Hasan of Perigon Wealth said that global market cap breaks down along the lines of 65% U.S. and 35% international. "That is a good starting point to think of how much to have in international," she said. "For the U.S. investor, it makes sense to have some home bias relative to the global market." Think broad exposure rather than picking regions Avoid trying to read the tea leaves on which specific nations and international companies may emerge as winners as trade policy evolves. Instead, consider adding a large, broad diversified ETF to your roster. Broad international ETFs with gold ratings from Morningstar include the Vanguard FTSE All-World ex-U.S. ETF (VEU) and the iShares Core MSCI Total International Stock ETF (IXUS) . Both are sporting year-to-date returns of nearly 14%. "There are still too many unannounced policies, and this is where the time is more for diversification, rather than trying to guess the winners and losers," Aliaga-Diaz said.
Muscat Daily
17-05-2025
- Business
- Muscat Daily
Jindal Renewables, OQAE sign deal for large-scale renewable projects in Oman
Muscat – Jindal Renewables, part of the $25bn India-based Jindal Group, and OQ Alternative Energy (OQAE), the sultanate's designated national champion for renewable energy, have signed a Joint Development Agreement (JDA) to collaborate on the development, ownership, and operation of large-scale renewable energy assets in Oman. The agreement was formally signed by Harssha Shetty, CEO of Jindal Oman, and Najla Zuhair al Jamali, CEO of OQ Alternative Energy, at a ceremony held in Muscat during Oman Sustainability Week. This strategic partnership marks a significant milestone in supporting the goals of Oman Vision 2040, the national roadmap for economic diversification, sustainability, and green industrialisation. In a press statement, both companies expressed their deep gratitude to His Majesty Sultan Haitham bin Tarik for his visionary leadership in guiding Oman's transition toward a knowledge-based, low-carbon economy. The partnership reaffirms their commitment to contributing meaningfully to His Majesty's vision of a more sustainable and prosperous Oman. Under the JDA, both companies will co-develop Integrated Energy Valleys (IEVs) – a flagship configuration pioneered by Jindal Renewables – to deliver 24×7 firm, dispatchable renewable power by combining solar, wind, and advanced energy storage technologies. As part of its future roadmap, Jindal Renewables plans to develop the first Integrated Energy Valley (IEV) in Oman to deliver renewable power to a 5 MTPA green steel plant proposed by Jindal Steel Duqm, a sister concern of Jindal Renewables. Additionally, a separate IEV is planned to supply 300 MW of continuous clean power to the operational 2.4 MTPA Jindal Steel plant in Sohar, enabling the decarbonisation of Jindal's existing industrial footprint in the dultanate. Harssha Shetty said, 'This agreement is a powerful endorsement of our shared commitment to decarbonising heavy industries and creating scalable, resilient clean energy ecosystems. Together with OQAE, we aim to make Oman a leading player in the global green energy value chain.' Najla Zuhair al Jamali said, 'This agreement underscores OQAE's commitment to accelerating investable, utility-scale renewable energy projects that align with Oman's long-term decarbonisation agenda. By enabling clean power for strategic industries, we are not only supporting economic diversification under Vision 2040, but also creating tangible opportunities for sustainable investment and value creation in the region's energy transition.' Formerly known as Vulcan Green Energy, Jindal Renewables is the clean energy arm of the Jindal Steel. It is focused on developing utility-scale renewable energy projects to power green manufacturing and support industrial decarbonisation, with special emphasis on energy storage and integrated solutions like the IEV.
Miami Herald
30-04-2025
- Business
- Miami Herald
Iconic fund manager sends shocking 3-word message on stocks
The stock market has been on a roller coaster since President Trump revealed higher-than-expected reciprocal tariffs on April 2. Global stocks fell sharply following the tariff announcement before rallying after President Trump paused reciprocal tariffs for 90 days, excluding China, on April 9. The tariff seesaw has forced investors to reconsider economic and corporate profit outlooks following the S&P 500's robust 23% gains in 2024. Recent economic data suggests a potential slowdown in the U.S. economy is underway. Tariffs could push us into stagflation or an outright recession, casting a long shadow over stocks, given that future expectations for revenue and profit growth primarily determine stock prices' valuation. Related: Surprising recession news rocks stocks If tariffs spark inflation and crimp supply chains, the U.S. economy could fall into a recession, dragging global economies down with it. Global fund manager Mark Mobius is well aware of the potential domino effect associated with "when America sneezes, the world catches a cold." Mobius is a legendary fund manager who is an expert in managing money outside the U.S., particularly in developing and emerging markets. He began managing Franklin Templeton's Emerging Markets Group in 1987, a role he held for 30 years before founding Mobius Capital Partners LLP. Mobius has seen a lot over the past thirty-plus years, and this week, he offered a surprising message on how he's managing money in the wake of recent uncertainty. Bloomberg/Getty Images A tectonic shift is underway to reshape global trade, creating significant uncertainty roiling stock markets worldwide. Related: Veteran fund manager who correctly forecast stocks' drop and pop sends blunt 6-word message on what's next The iShares Europe ETF (IEV) fell 11%, the iShares Japan ETF (EWJ) fell 10%, and the iShares China Large-Cap ETF (FXI) fell 17% after Trump's "Liberation Day" tariffs announcement. Most global markets have recovered some losses since reciprocal tariffs were paused for 90 days on April 9, but that doesn't necessarily mean investors are out of the woods yet. "He (Donald Trump) has made revolutionary changes that affect not only the U.S. but the world... We're in a new world of thinking... We've got to get used to a new world order," said Mobius in a Bloomberg interview. "We think uncertainty will continue for the next three, four, six months, and we've got to get used to it." Mobius has navigated the global markets' twists long enough to spot risks and opportunities. He's credited with predicting the post-Great Recession rally in 2009 and profiting from the Asian financial crisis in 1997 and Russia's stock market drop in 1998. Despite his knack for taking advantage of beaten-down stock markets, he's not in any rush to press the buy button yet. "We've seen the market come down. Some stocks are looking very attractive... India will be benefiting from what's happened with China. Some of these emerging countries will do quite well," said Mobius. "But we have to wait until this all even's out." In the short term, India could benefit from acting as a middleman for China's exports to the United States, given that it currently faces tariffs of just 10%. Longer-term, businesses' desire to insulate against future China trade risks could shift production to India, especially if it is able to secure a favorable deal with America. Treasury Secretary Bessent indicated this week that a trade deal with India could be near, calling it out as one that could get announced shortly. In short, how tariff deals pan out will determine winners and losers. "You're going to see more of this negotiation and bargaining taking place... This will all pan out, and we'll see a settling of what the agreements are going to be," said Mobius. "China will be the big question mark. If no agreement is reached with China, then I expect China not to do very well." Perhaps stocks will move significantly higher when trade deals are completed. However, until then, Mobius isn't rushing to buy, especially since the yield on Treasury bills is above 4% "Cash is king," concluded Mobius bluntly. "95% of my money in the funds are in cash." Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
